Early Retirement Strategy | Retire Early with $50 a Day

I was able to retire early at the age of 30 using the exact early retirement strategy in this post. While you might be thinking, how can you retire at 30? Well, it’s important to first define what early retirement actually means to you.

Here’s what it means to me.

You can click any of the links below to quickly navigate this post or continue reading so you don’t miss anything:

What is Early Retirement?

50 dollar early retirement

Early retirement is no longer defined as the moment when you stop working forever, it’s simply the moment when you no longer have to work for money.

But you can choose to keep working like I do, if that’s what you enjoy doing. It’s been scientifically proven that working is actually good for you and many people who completely quit working start losing their mental faculties and people who retire early might actually die sooner.

So to me, early retirement means being able to make the shift from work you have to do to work you want to do. The old school idea that when you retire you are done working, is just that, an old school idea. Now that we’ve got that settled, let me show you how I retired early and how you can too.

How Can I Retire Early?

While this is a hotly debated topic in the early retirement community, based on a series of papers known as the Trinity Studies, you need to save approximately 25-30x your expected annual expenses to have enough money to last you for the rest of your life.

This multiple is based on what’s known as your expected withdrawal rate, which is the percentage of your investment growth that you would be able to withdraw per year to live on. Based on this study (and many others), a safe early retirement withdrawal percentage is between 3%-4% adjusted for inflation (meaning you can also take out an additional 2%-3% per year depending on inflation).

How Much Money Do I Need to Retire?

Here’s how to calculate how much money you need to retire early:

First, figure out how much money you are spending each year by tracking your expenses. My wife and I spend approximately $50,000 per year and here’s an approximate breakdown of our expenses by category.

You can track your expenses using a free tool like Personal Capital. My wife and I spend approximately $50,000 per year, and you can see an approximate breakdown of my expenses by category here:

early retirement expenses


Using myself as an example, if you spend about $50,000 per year, then you need to have somewhere in the neighborhood of ($50,000 x 25) $1,250,000 to ($50,000 x 30) $1,500,000.

It’s important to note that this is how much money I currently spend, not how much I will necessarily be spending in the future, but it’s a great starting point for setting an early retirement goal.

$50 a Day Early Retirement Strategy

This is the single most important hack I’ve used to build wealth. It’s easy.

Set Daily Goals

I break down ALL of my money goals into daily goals. I still deposit money every day into my investment accounts and track my net worth for free using Personal Capital. Our minds are built to think about today. Our ancestors weren’t able to comprehend years into the future. This is one of the reasons it’s so hard for us to save money.

You’ve probably tried those retirement calculators or have used the retirement projector at Personal Capital. Most of the calculators come out with a number you will need to “retire” based on your inputs and current progression. The numbers are usually big and run into the millions. SERIOUSLY? Who can save $1,272,000 dollars? I was barely able to buy a burrito when I first started.

These numbers are so large, they seem impossible to reach, don’t resonate with us, and actually discourage saving. But, backed by academic research, a lot changes when we start thinking about money in daily increments. I used this hack to transform my savings and reach financial independence. If you are nerdy like me and want to go deeper on this topic check out the research of USC professor Daphna Oysterman.

How Early Do You Want to Retire?

So what should your daily goal be? I did some calculations and determined I needed to try and save approximately $50 a day in order to reach financial independence in 30 years. It can’t be a coincidence that I needed to save a Grant a day!

It’s a simple calculation, and I even created a calculator that makes it easy to figure out. In order to get to $1,250,000 I needed to save $50 a day and have an expected 5% annual compounding rate (a pretty reasonable expectation over a 30 year period). Thinking about it in annual terms I needed to save $18,250 a year. Max out that 401K!

But 30 years? Forget that.

Then I started really thinking. If I could save even $51 a day then I could fast track my financial independence. This was a mind-blowing moment for me. Just $1 more per day. I was hooked.

To figure out when you can retire early, check out this early retirement calculator:

Retirement Freedom Calculator



Month EndInterestContributionRetirement Account BalanceBalance at age Retirement Balance Needed

Fast Track Your Early Retirement by Saving More

I started depositing as much money as possible every day into my investment accounts. I downloaded the Vanguard app and literally make deposits every single day directly into my investment accounts. Some days it was only $5, but I rarely missed a day. Then I started a side hustle and put 100% of what I made directly into the same Vanguard account. I barely let deposits clear my bank account. The minute I saw the money in there I put it into an investment account.

I got really stoked when I was able to pass the $50 a day deposit threshold. I started to feel in control. I knew that I was ahead. Every day that I deposited more than $50 I was ahead in my retirement savings.

Then I started trying to make as much money as possible every day so I could invest it. I stopped thinking long term and thought every day about making that $50 threshold. When I got a bonus or a new client, those were just bonus points. BOOM, right into my investment account.

Do your own calculation – you might need a lot less.

Here is how much you need to save per day to reach your number:

early retirement 50 dollars day

Depositing money into my investment accounts every day felt, and still feels, like a game.

Fifty dollars went from being my daily goal, to being my daily minimum. I started depositing $70, then $80, then $100 dollars a day. Then as my side hustles started really taking off I started deposit $500+ a day. Every check I got I put as much in as I could that day, but still kept my daily $50 deposit goal. Then I put $5,000 in a day, then $20,000 and the rest is history.

Using this early retirement hack I was able to reduce my 30-year saving plan down to just 5 years and reach financial independence!

Automate Your Early Retirement Savings

I still do this to this day. Now I automate most of it and simply have the money pulled out of my account and put into Vanguard. My current minimum threshold is $200/day.

But you can start at any level that is comfortable for you. There are a ton of ways you can take this idea and run with it. Try depositing $5/day to start and then increase it $1/week. Trust me you probably aren’t going to miss that extra dollar.

There are a ton of apps you can use like Acorn and Digit to do this for you, but good old fashioned manual depositing via your investment app (Betterment, Vanguard, Personal Capital, or any others) all make it super easy to deposit. I find that doing it manually is A LOT more fun and will get you motivated to escalate your limits.

You Can Retire Early Too!

The more you invest every day, the faster you will retire early. If it means that much to you, you’ll make time for it. Every $10 you invest today, could help you reach early retirement days, weeks, or maybe even months sooner in the future. Imagine how much time making that extra investment is buying you in future time.

Now that you’ve learned how to retire early, you need to pay attention to the mechanics and make decisions that minimize taxes, minimize fees, and invest consistently in the right accounts the right way, so you can reach early retirement as quickly as possible.

To learn more about how to retire early and the exact steps I took to retire at 30 check out my book Financial Freedom: A Proven Path to All The Money You Will Ever Need.

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Grant Sabatier

Creator of Millennial Money and Author of Financial Freedom (Penguin Random House). Dubbed "The Millennial Millionaire" by CNBC, Grant went from $2.26 to over $1 million in 5 years, reaching financial independence at age 30. Grant has been featured in The New York Times, Wall Street Journal, BBC, NPR, Money Magazine and many others. He uses Personal Capital to manage his money in 10 minutes a month.

Latest posts by Grant Sabatier (see all)

Posted in: FI/RE, Most Popular

    Posted Mar 20 2017
    Posted Mar 20 2017
    This is a great tip using human nature. Thank you. I am a complete novice at financing and investing. My biggest question is what kind of investment account do you use? like a mutual fund? I save vigorously, but just my old fashioned savings account. I think the key here from reading your article is putting money into an investment account, not just a simple savings account. However, with investment account, isn't it possible we may lose money if the market crashes? That's my vague understanding of investment anyway... Or maybe there are more secure ways to have an investment account? Would love to know. Thank you
      Grant Sabatier
      Grant @MillennialMoney
      Posted Mar 22 2017
      Thanks Dana. Yes an investment can always lose money, but the stock market has historically always gone up over any 10 year period. But I always think about investing for the long term, so your personal circumstances may be different. When you think about investing long term, the key is to invest as much as you can as frequently as you can (Google search dollar cost averaging). I invest mostly in low-cost index funds through Vanguard. You can learn more about my investing strategies by clicking here and here.
    Posted Mar 20 2017
    What were some of your side hustles? For millennials, pumping out $18,250 per year (equivalent of $50.00 per day) in after tax dollars would be quite an achievement given the costs of student loans, housing expenses, and living costs that compete for the paycheck. In Buffalo, NY....a single income earner making a gross salary of $40,000 would expect to have around $31,300 after taxes. Less $50.00 per day...that leaves $13,050 for all of life's living expenses! What was your strategy for building up your salary in order to be able to hit your $50.00 per day goal?
      Grant Sabatier
      Grant @MillennialMoney
      Posted Mar 22 2017
      These ar all great questions Michael. I started at $5 per day and then tried to quickly escalate my savings rate. I did this through side hustling and making money any way I could - even if it was just for small amounts of money, every day I thought about how I could save more money that day. To your point it's hard to save that much making $40,000, but I hear from readers who do and save at least 50% of their income - it either comes down to choices and sacrifices at that salary level, or making more money by getting a raise or side hustling.
    Posted Mar 20 2017
    Where did the $1.2MM figure come from? Just curious if this is for a single person and if I would need to multiply by 2 if married. Thanks! Great article!
      Grant Sabatier
      Grant @MillennialMoney
      Posted Mar 21 2017
      I came from me multiplying my expected annual expenses of $50,000 x 25 (which is a baseline calculation of money needed to retire). Annual expenses x 25.
    Posted Mar 21 2017
    Would this concept be different for someone in Canada? Would someone in Canada use a different app?
      Grant Sabatier
      Grant @MillennialMoney
      Posted Mar 22 2017
      Hi Jessa. I don't know much about Canada, but the concept of daily saving definitely still applies. You can use whatever investing app you feel comfortable with - the key is to stick with it!
    julie comtois
    Posted Mar 26 2017
    I am 47 we only make 18 000$ a year so..."only" saving 18 000$ a year? What would you suggest? The 50$ a day is good for people that makes 40 000$ a year
      Grant Sabatier
      Grant @MillennialMoney
      Posted Mar 27 2017
      Hi Julie. Start small and increase savings when you can. I started at $5 per day.
    Posted May 30 2017
    Hey Grant, i read this article of yours a while ago and it was pure inspiration&motivation for me. - TX - Breaking down the numbers to the daily amount made it seem a lot easier to realize. I cut costs at all corners and reached 50$ a day this year. Greetings form Germany, DividendSolutions
      Grant Sabatier
      Grant Sabatier
      Posted Jun 01 2017
      YESSSSSS! This is great to here. Keep me posted on how the $50 a day strategy goes this year!
    Mighty Investor
    Posted Jun 07 2017
    I did exactly this a few years ago. I knew I was going to retire early and wanted to make a final push to pad my overall assets and net worth. So I identified $100 per day for as many days in a row as I could. This was in addition to what I was already saving normally. So it was like finding new ways to save or generate savings. The best were recurring fees that I was able to reduce (like optimizing insurance and cancelling cable), but I also just sold stuff that I didn't need anymore (like an old snowboard that was actually a collectors item). In two weeks, I managed to unlock $2,800 in pretty low hanging fruit--which worked out to well over $100 per day. I think this approach is so much better than trying to budget.
      Grant Sabatier
      Grant Sabatier
      Posted Jun 10 2017
      Thanks Tom! I'm all about that low-hanging fruit.
    John Dee
    Posted Jul 10 2017
    I read that you had 7 income streams from side hustles. What type of side hustles did you have producing those revenue streams?
      Grant Sabatier
      Grant Sabatier
      Posted Jul 14 2017
      Hi John. Here are some of the many side hustles I've done: https://millennialmoney.com/best-side-hustles/
    Posted Oct 23 2017
    Hi Grant, love the blog and the super short podcast tips, learning so much! Quick question, you say you deposit money into your investment account daily but do you invest that money daily? I would think this would incur a large amount of transaction fees from the broker (in your case vanguard)?! If you don't invest it daily, do you have a certain threshold before you invest it? Thanks!
      Grant Sabatier
      Grant Sabatier
      Posted Oct 23 2017
      Yes daily, most Vanguard funds don't charge a transaction fee! https://investor.vanguard.com/mutual-funds/fees
    Greenbacks Magnet
    Posted Jan 12 2018
    Very nice strategy to motivate anyone to save. I started off years ago doing 3-5% and am now doing many times that. I had to work my way though. I think just about any goal is attainable, if you want it bad enough. Thanks, GBM
    J. Richardson
    Posted Jan 23 2018
    An insightful post. While I can't afford to save $50/day, I have implemented the strategy starting where I am and with what I have. My goal is to scale up accordingly. I hope that one day I too can save $20k/day! That is just insane!
    Posted Feb 15 2018
    Mr. Money Moustache says invest in vanguard with Vanguard Total Stock Market Index Fund. It requires a minimum of 3,000 to get started. Do you just save 3K and then start investing? Or is there something that a poor graduate student can start investing in that is just as good?
      Grant Sabatier
      Grant Sabatier
      Posted Oct 21 2018
      You can start with a Total Stock Market ETF that has no minimum.
    Blake Smith
    Posted Mar 01 2018
    Great post sir! $50 a day is a great way to start. Or sometimes just save a cup of coffee a day could make a big difference. Thanks for writing!
    Posted Jul 13 2018
    I started with $5 a day back in college. When all my friends were getting an extra drink at last call, I had water and started investing in myself. Now I am up to $87 daily savings. It's important for young adults to find their inner money mindset. Or else, the millennial generation is going to be poorer than our parents. Keep spreading words of encouragement Grant!
    Posted Sep 04 2018
    Hi Grant, Great post by you about early retirement strategy. I'm 35 years old and now engaged in a job. Your strategy helps me to learn more about early plans of retirement. Thank You!
    Posted Sep 04 2018
    Hey Grant, You write a wonderful post for me about early retirement strategy. It can help to evaluate my earlier spending and how much I have to invest monthly to reach that point of financial freedom. I have also used your calculator It working wisely. Thank You!
    Posted Nov 28 2018
    Hello Grant, This is a great post and has motivated me and others to try this strategy. I am confused on how to start. I have a 401K but only contribute a small amount so that I have enough cash each month to pay the bills etc..I rather look at my savings each day or week and then invest a certain amount to a fund. But can I also invest in a Roth, since I don't know if I am eligible because of my combined income with my wife. Or is there a good taxable account I could start maybe. Confused investor!!
    How I Paid Off My Loans: We Aim to Pay Off $100,000 this Year | Money Life Wax
    Posted Jun 02 2019
    […] recently read an article about a $50 a day retirement plan on Millennial Money. If you were to invest $50 a day for 30 years you would end up with 1.2 million […]
    Posted Aug 08 2019
    […] Grant Sabatier at Millennial Money […]

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