Mike Rosehart, 27, enjoys a life of leisure. Having amassed a fortune of more than AU$1 million, he has been retired since the tender age of 24.
The former IT business analyst saved aggressively, lived frugally, and bought his first home when he was just 19 years old.
Watch the video above
Now a dad of two and married to wife, Alyse, 28, the money-maker is convinced anyone can achieve financial independence and retire early - otherwise known as FIRE - with a little financial wizardry.
'Most of us cant resist the Starbucks, the trip abroad or the new cellphone.'
The secret to retiring early is: spend less, earn more and maximize the returns on the difference," Mike, who is Canadian, says.
The hard part is executing it. Most of us cant resist the Starbucks, the trip abroad or the new cellphone.
Delayed gratification is the secret to FIRE.
Mike hit upon the idea of retiring early when he was studying at the Ivey Business School in Ontario, Canada, in 2010.
He came across Early Retirement Extreme, a book about becoming financially independent on a median salary by Danish astrophysicist Jacob Lund Fisker.
I was in my first year at university and I was working on a project about the psychology of happiness," he explains. "I went deep into a wormhole on the internet and I came across Jacob Lund Fisker. He started the spark for me.
'I realised that what makes you happy is freedom and the ability to do what you want in your life'
His thesis was that anyone can retire in five years. I thought: Hey, Im 17, Im young and eager.
I realised that what makes you happy is freedom and the ability to do what you want in your life.
Mike had a hard time persuading his girlfriend and future wife, Alyse, to share his early retirement ambition.
I wouldnt say shes a crazy spender but she likes her Starbucks," he says. She wanted to have kids young so I explained that if we were able to retire early we could be there for our kids. I told her we just had to cut our spending in half.
It took me over a year to get her on board. Every time she bought Starbucks, I said: That cost us two more days away from our kids.
Throughout university, Mike worked full time while also studying full time.
He said: I grew up really poor with a single mother on the poverty line so I didnt have family money to rely on. I got scholarships to go to college.
When I first started going after FIRE, I was working at Tim Hortons, earning slightly above minimum wage. I got a better job the following summer at border services. I saved aggressively.
In my second year of university, I rented a bedroom for AU$330 [299 CAD] when the market rent would have been AU$607 [550 CAD].
It was 7ft by 8.5ft but it was perfect for me. I just needed a place to sleep. Then I got a tiny apartment with my girlfriend for just AU$663 [600 CAD] a month.
We even shared the internet with the neighbors and gave them AU$5.50 [5 CAD] a month. I cycled everywhere instead of getting a vehicle. I found a bike that someone was giving away on the Craigslist of Canada.
'We graduated debt-free and with money in the bank'
At 19, Mike bought a AU$221,000 [200,000 CAD] cottage with Alyse.
It was a tiny little cottage, the cheapest house I could find in London. We put down AU$43,000 [39,000 CAD] - half of that was money we had saved and half of it was our student line of credit. We rented every room in it and so it was earning money for us. We had four other roommates. The guy in our basement apartment was paying our mortgage.
We graduated debt-free and with money in the bank.
The couple married in 2014 and were keen to keep wedding costs down, with the big day setting them back AU$5500 [5,000 CAD].
We found a venue that were offering a deal where you could have the wedding for free as long as you invited enough guests," Mike explains. Initially we wanted 150 guests but to keep costs down we whittled our guest list to just 80 people.
People give a gift when they come to a wedding and so we actually made a profit on our wedding if you think about it like that.
For our honeymoon, I used the points on my credit card to go to Brazil so it didnt cost anything. We had a friend who hosted us in Brazil so our accommodation was free.
'I got off work at 6pm and Id bike over to my property and Id do it up until midnight'
After college, Mike took a AU$60k-a-year [55,000 CAD] job in consulting. Alyse, who had graduated a year before, in 2013, took a graphic designer job, making AU$39,000-a-year [35,000 CAD].
Mike adds: My salary was not exorbitantly high but I took the proceeds from that salary and bought rental properties and reinvested the rent. I was able to convince the bank to lend me 80 per cent of a house price.
I got off work at 6pm and Id bike over to my property and Id do it up until midnight. We lived on slightly less than half of Alyses salary.
We were saving 100 per cent of my salary, every single dollar. I kept reinvesting every profit from rental property. It kept snowballing."
The frugal approach allowed the pair to buy ten properties in three years. In 2017, Mike was able to hand in his notice and Alyse also retired later that year.
More on 7NEWS.com.au
Mike sold 11 properties and he knew that he had hit his FIRE number - 25 times his yearly living expenses.
I went into my bosss office and he told me that my job would be there when I came back in six months time," Mike explains.
He thought I was having a quarter-life crisis.
Mike admitted that retirement, at 24, did take some getting used to.
Its a bit jarring at first. You find a way to cope by filling time with hobbies, and at first for me, it was gaming. But then I started a group here in London called London on Fire, for people who are also pursuing FIRE.
We do a monthly meet up. One of my passions is looking up properties. I love going and looking at houses and thinking about how we can redesign this. Thats what generates income by accident.
I made AU$66,000 [60,000 CAD] this year without even trying."
Mike teaches others how to achieve FIRE on his Youtube channel, named Mike Rosehart, and he has also established his own mentorship program.
"Its free and some coaches charge 50 grand a year for something like this," he says.
But its not about the money for me."
See original here:
- FMO & IMO | Financial Independence Group, Inc - December 25th, 2016 [December 25th, 2016]
- financial independence - Good Financial Cents - December 31st, 2016 [December 31st, 2016]
- 8 Secrets to Achieving Financial Independence - January 4th, 2017 [January 4th, 2017]
- COLUMN-Millennial parents still like to tap the Bank of Mom & Dad - Thomson Reuters Foundation - February 7th, 2017 [February 7th, 2017]
- Republicans Move on Financial Deregulation; Fed Finalizes Stress Test Guidance - Lexology (registration) - February 7th, 2017 [February 7th, 2017]
- Millennial parents still like to tap the Bank of Mom & Dad - One ... - One America News Network (press release) - February 7th, 2017 [February 7th, 2017]
- Speaking of Women...Are We Really More Financially Independent Now? - Investopedia - February 7th, 2017 [February 7th, 2017]
- House Dems: Trump wants to put Wall Street first - The Hill - February 7th, 2017 [February 7th, 2017]
- 3 insider tips for achieving financial independence | The Motley Fool ... - Motley Fool UK - February 7th, 2017 [February 7th, 2017]
- The power of financial independence - KXAN.com - February 7th, 2017 [February 7th, 2017]
- Find out if you qualify for free tax preparation and financial advice - wtvr.com - February 7th, 2017 [February 7th, 2017]
- My Turn: Program provides a path out of homelessness - AZCentral.com - February 7th, 2017 [February 7th, 2017]
- Getting To Know You Tuesday: Elliot Dole - Forbes - February 7th, 2017 [February 7th, 2017]
- Millennial Parents Still Like to Tap the Bank of Mom & Dad - WealthManagement.com - February 8th, 2017 [February 8th, 2017]
- How to Prioritize Financial Goals When You Can't Do It All - Inside Higher Ed (blog) - February 8th, 2017 [February 8th, 2017]
- How to Modify Money Management After the Presidential Election - Yahoo Finance - February 10th, 2017 [February 10th, 2017]
- Congress could limit the Fed's independence and hurt the US economy - Washington Post - February 13th, 2017 [February 13th, 2017]
- Court Rejects Order Forcing Parents to Pay Tuition - Inside Higher Ed - February 13th, 2017 [February 13th, 2017]
- Syrian refugee families achieve financial independence in Alliston - Simcoe.com - February 14th, 2017 [February 14th, 2017]
- Sheroes Founder Sairee Chahal ventures for Women's Financial Independence in India's sometimes Suffocating ... - Plunge Daily - February 16th, 2017 [February 16th, 2017]
- Advocates say more women need financial independence: 'We really do need that extra leg up' - Globalnews.ca - February 16th, 2017 [February 16th, 2017]
- Surviving widowhood: Five tips to avoid financial hardship - Cincinnati.com - February 16th, 2017 [February 16th, 2017]
- Q & A with Sr. Maureen Gallagher, setting up financial independence paths for women in Mexico - Global Sisters Report (blog) - February 16th, 2017 [February 16th, 2017]
- The road to financial freedom - ABS-CBN News - February 18th, 2017 [February 18th, 2017]
- Byron Moore: Position, Pace and Power perform like a pro - Monroe News Star - February 18th, 2017 [February 18th, 2017]
- Cash Course - Binghamton University Pipe Dream - February 20th, 2017 [February 20th, 2017]
- Independence Financial Partners - SPECIALIZING IN - February 20th, 2017 [February 20th, 2017]
- 'Financial you' hits all bases, aligns with priorities, values - Lehigh Valley Business - February 20th, 2017 [February 20th, 2017]
- International Financial Reporting Standards - Wikipedia - February 21st, 2017 [February 21st, 2017]
- Opinion: Young adults need an easier path to financial independence - LSU Now - February 23rd, 2017 [February 23rd, 2017]
- Retiring in their 30s. Yep, they're doing it. - Crain's Chicago Business - February 24th, 2017 [February 24th, 2017]
- Successful Boomer Women Offer Financial Advice to Younger ... - Fox Business - February 24th, 2017 [February 24th, 2017]
- 'Thousands' of cancer sufferers forced to borrow money from parents because of financial difficulties caused by illness - The Independent - February 27th, 2017 [February 27th, 2017]
- Independence Contract Drilling, Inc. Reports Financial Results For The Fourth Quarter And Year Ended December 31 ... - PR Newswire (press release) - February 28th, 2017 [February 28th, 2017]
- Another way to measure retirement readiness: Your 'Power Percentage' - USA TODAY - March 1st, 2017 [March 1st, 2017]
- Oran Hall | Young cop seeks financial independence | Business ... - Jamaica Gleaner - March 6th, 2017 [March 6th, 2017]
- International Women's Day - Investing for financial independence - Simple Landlords Insurance (press release) (blog) - March 8th, 2017 [March 8th, 2017]
- Game of Thrones gave financial independence to actor Conleth Hill - Bollywood Life - March 8th, 2017 [March 8th, 2017]
- How to Leverage Your Small Business for Financial Success - Kiplinger Personal Finance - March 9th, 2017 [March 9th, 2017]
- A Struggle Back to Financial Independence After a Brain Injury - The Good Men Project - March 9th, 2017 [March 9th, 2017]
- Ten favorite personal-finance books - Christian Science Monitor - March 11th, 2017 [March 11th, 2017]
- Five facts about financial independence - finder.com.au - April 8th, 2017 [April 8th, 2017]
- Regulatory reform leads to financial independence - Argus Leader - Sioux Falls Argus Leader - April 8th, 2017 [April 8th, 2017]
- Mayor Berke's Council For Women Takes On Predatory Lending - The Chattanoogan - June 6th, 2017 [June 6th, 2017]
- Mayor's Council For Women Invites Public To Financial Independence Hearing On Monday - The Chattanoogan - June 6th, 2017 [June 6th, 2017]
- How I Reached Financial Independence By Age 40 - The Dough Roller - June 6th, 2017 [June 6th, 2017]
- Berz: High-interest loans can hamper financial independence - Chattanooga Times Free Press - June 6th, 2017 [June 6th, 2017]
- Financial tips, resources for college grads - WTOP - June 6th, 2017 [June 6th, 2017]
- Public invited to hearing on financial independence, high-interest lending - Nooga.com - June 6th, 2017 [June 6th, 2017]
- Financial Independence | Tardus | Retire Early | Wealth - June 6th, 2017 [June 6th, 2017]
- How to become financially independent in 5 years - Jun. 6, 2017 - CNNMoney - June 7th, 2017 [June 7th, 2017]
- House Republicans Vote to Strip Away Post-Financial Crisis Safeguards - Roll Call - June 8th, 2017 [June 8th, 2017]
- Auditor Independence Definition from Financial Times Lexicon - June 8th, 2017 [June 8th, 2017]
- Top 5 tips to achieve financial independence | Mpumalanga News - Mpumalanga News - June 11th, 2017 [June 11th, 2017]
- Two 6% dividends to help you achieve financial independence ... - AOL UK - June 11th, 2017 [June 11th, 2017]
- Sun Life kicks off Financial Independence Month with beautifully crafted short films - ABS-CBN News - June 13th, 2017 [June 13th, 2017]
- How to become financially independent in 5 years - CNNMoney - June 13th, 2017 [June 13th, 2017]
- Achieve financial independence with stocks by following this one ... - AOL UK - June 17th, 2017 [June 17th, 2017]
- I'll pursue financial independence for judiciary - Akuffo - GhanaWeb - June 20th, 2017 [June 20th, 2017]
- Baker awarded Helping Hands grant - Columbia Daily Tribune - June 22nd, 2017 [June 22nd, 2017]
- Baker awarded Helping Hands grant - Devil's Lake Daily Journal - June 23rd, 2017 [June 23rd, 2017]
- Porter's Five Forces can help you achieve financial independence ... - AOL UK - June 24th, 2017 [June 24th, 2017]
- You can achieve financial independence easily by using buckets ... - AOL UK - June 24th, 2017 [June 24th, 2017]
- You can achieve financial independence easily by using buckets ... - Motley Fool UK - June 26th, 2017 [June 26th, 2017]
- Greater savings options for feds draw praise, while move to cut their retirement looms - Washington Post - June 26th, 2017 [June 26th, 2017]
- Alabama one of the least financially independent states in the country - Birmingham Business Journal - June 26th, 2017 [June 26th, 2017]
- JL Collins' Tips for Achieving Financial Independence - The Dough Roller - June 26th, 2017 [June 26th, 2017]
- 3 steps to become wealthier and more successful - Ladders - June 27th, 2017 [June 27th, 2017]
- These 5% dividend yields could help you win financial independence - AOL UK - June 30th, 2017 [June 30th, 2017]
- Celebrating Independence - Jewish Link of New Jersey - June 30th, 2017 [June 30th, 2017]
- The easy way to financial independence - AOL UK Money - AOL.co.uk - AOL UK - July 2nd, 2017 [July 2nd, 2017]
- 5 powerful steps towards financial independence and retiring early ... - AOL UK - July 3rd, 2017 [July 3rd, 2017]
- Independence Financial Group - July 3rd, 2017 [July 3rd, 2017]
- Gain Financial Independence Attend a FREE Educational Event - FOX31 Denver - July 14th, 2017 [July 14th, 2017]
- CNNMoney readers react: She retired at 28 with $2.25 million - Aug ... - CNNMoney - August 6th, 2017 [August 6th, 2017]
- How to retire early with financial independence in 3 steps - NBC2 News - August 6th, 2017 [August 6th, 2017]
- Could this miner help you secure financial independence faster than ... - AOL UK - August 24th, 2017 [August 24th, 2017]
- Solutions 4 Financial Independence: 8/22/17 - WDTV - August 24th, 2017 [August 24th, 2017]
- The 7 Stages of Financial Independence | Radical Personal ... - July 30th, 2018 [July 30th, 2018]
- Financial Independence - August 3rd, 2018 [August 3rd, 2018]