May 15th 2024.
Published on September 3rd, 2021, the story of twin sisters who retired in their 30s has been making waves. Nadia and Nicole Carter, known as the Wealth Twins, left their careers in finance by applying some financial strategies to their own lives. Nicole, now 33, has been enjoying retirement for the past 10 years, while her sister Nadia, who retired at 35, has been job-free for over eight years, according to Business Insider. What's more impressive is that both sisters are still based in the bustling city of New York.
These successful sisters have shared three useful tips for anyone who wants to follow in their footsteps and retire early. The first tip they offer is to try a mini-retirement before fully committing. While early retirement may sound like a dream come true, it's not for everyone, as the sisters acknowledge. To ensure that they were making the right decision, both Nicole and Nadia took some time off work to get a feel for the lifestyle and financial implications. Nicole used her savings to finish business school, while Nadia took a sabbatical for six months before returning to her job.
Nicole explains that taking a mini-retirement can help build confidence and give a realistic perspective of what early retirement would be like. She says, "It helps you build your confidence to let you know, 'Hey, I can do this. These numbers are all working out,' just to check yourself in the real world." This trial period can help individuals assess whether early retirement is truly the right path for them.
The second tip from the Carter sisters is to invest, save, and live below your means. They both saved and invested about 75% of their paychecks to build up enough funds for early retirement. This was achieved by keeping their living expenses steady, even as their earnings increased. By avoiding the temptation to indulge in a more lavish lifestyle as their paychecks grew, they were able to put more money into savings and investments. Nadia explains, "We lived like we lived on our first salaries. That was one of the biggest things that helped us. We didn't have to think about it, you just sock it away."
The third and final tip is to keep housing costs low. Nadia, in particular, used a clever strategy known as house hacking to reduce her living expenses, generate passive income, and feel more secure. She purchased a multi-unit property in New York City where she lived in one unit and rented out the others. Nadia recalls thinking, "How can I get a place that if I did lose my job, I wouldn't have to worry about the mortgage?" This led her to the idea of buying a multi-family property, which she believes is a great tool for early retirement. She adds, "Because we lived for free, all your money can go into your savings."
In the world of finance and investment, the Carter sisters are trailblazers. They have proven that early retirement is achievable with the right mindset and financial strategies. And as their success continues to inspire others, it's clear that their journey is far from over.
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