US woman saves 10 crores, retires at 37; Know how

In an era where expenses are more than income, a US-based woman has stunned everyone by saving nearly £1 million (Rs 10 crore) with her husband. She took her retirement at the age of 37.

The miracle was possible by cutting down expenses, claim Katie Donegan. Reportedly, her family had enough to live comfortably, but there was very little money for fancy holidays or meals out. So, she use to save her pocket money as she enjoyed watching it grow instead of spending it.

According to a report in The Sun, Katie met her husband Alan during a volunteering project in Costa Rica in January 2005. “We returned to the UK as a couple, and I began a degree in statistics at University College London, where I lived with my parents, eating cheaply and not buying new clothes, as I hated the thought of getting into debt,” she said.

She further said that after graduating in 2008, she moved in with Alan’s mum in Hampshire in order to save for a house deposit. She was then working as an actuary with an earning of £28,500 per annum. Meanwhile, her husband was self-employed on a variable income, teaching businesses how to do presentations.

“We ate packed lunches, drove a second-hand Skoda, and invited friends over instead of going for expensive nights out. We saved hard and in November 2010 we had enough to put down a £42,000 deposit on a £167,650 two-bedroom flat in Basingstoke,” she added.

Katie and Alan got married in July 2013 and kept their cost as low as possible by hiring the local community hall, emailing the invites, and getting a friend to do the decorations.

By late 2014 her earning was £58,000 yet she was determined to keep her expenditure low. The couple put away £3,000 together every month.

In 2015, Katie read about FIRE (Financial Independence, Retire Early), a movement that suggests keeping expenditures low and saving every penny one can. The couple also researched and studied the stock market to increase their chances of making money.

Katie said, “It wasn’t because we didn’t enjoy our jobs – it was about financial freedom and quality of life. To bring in more money, I quit my job and began working as a contractor.

She added, “Some friends and family thought we were mad sticking with our modest flat and old car, but we were laser-focused and studied how to invest in the stock market. By September 2018, we had £898,000 in savings and investments.”

Between March and April 2019, Katie and Alan realized that they have reached their goal of £1 million. Following this, the 37-year-old decided to retire and her husband supported her decision. However, Alan chose to not fully retire, he still manages his business but is not involved in day-to-day operations.

The duo began to live a nomadic lifestyle, traveling everywhere from Thailand to Mexico, cycling, hiking, and keeping fit.

Now, their investments generate up to £65,000 a year.

Apart from that, Katie also runs a finance school, Rebel Finance School, a free 10-week online course to help people get control of their finances.

“To many people, a big house, and designer clothes signal success, but I have freedom and choice, which feels like the biggest success of all,” she said.

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