UK, First Published Sep 30, 2021, 1:59 PM IST
Katie Donegan from the UK is just thirty-seven years old. At this age, when most people start working and earning, she has retired. She is now leading a leisurely life after earning over Rs 10 crore in this short span of time. It shocks everyone how a person can save so much in such a short period of time no matter how hard they work. Her motto is to cut costs. She says she was saving instead of spending the money she had.
From a young age, she spent only money on necessities. It was this habit that made her a millionaire at just thirty-five. Katie’s family had the means to live comfortably. But she did not spend much money on touring or going out to dine at big hotels. Unlike other young people, Katie would keep her pocket money instead of spending it.
She first met her husband Alan in January 2005 in Costa Rica. They then fell in love and returned to the UK. Katie attended University College London to study statistics. Usually, by the time their children reach that age, they will have moved away from their parents. But Katie lived with her parents. She spent very little money on food and clothing. After graduating in 2008, she lived with Alan’s mother in Hampshire. So they were able to save on rent. In addition, Katie worked as an aquarist earning Rs 29 lakh per annum. Alan did not have a steady income job at the time. Alan did a lot of different jobs and made money. They often eat home-made food when they go to work. They were not ready to spend money buying food outside. The trip was in a second hand Skoda car.
The couple got married in July 2013. They also kept the wedding expenses to a minimum. They rented a nearby hall, emailed invitations, and enlisted the help of a friend to make decorations. By the end of 2014, her income had increased to Rs 58 lakh per annum. Yet she did not try to spend according to her income. They looked for ways to save every dam they could get their hands on. In addition to this, they started setting aside around Rs 3 lakh every month. Seeing their small flat, old car and modest lifestyle with so much wealth, many thought they were crazy.
In 2015, Katie reads about the FIRE movement. Fire is an acronym for Financial Freedom and Early Retirement. This helped them reduce costs and increase savings. To make more money, Katie and Alan began researching and investing in the stock market. By September 2018, they had made an investment of Rs 8 crore and Rs 79 lakh. Between March and April 2019, they reached the target of Rs 10 crore. Then Katie decided to retire.
At the same time, Katie did not want to retire and sit at home. She now runs the Rebel Finance School. This is a free ten week online course that will help others manage their finances effectively and control their spending. Even so, owning one is still beyond the reach of the average person. They have traveled extensively from Thailand to Mexico. Having lived a life of modesty in the past, they are now celebrating life with a vengeance. Katie says the key to success in life is the freedom to do what you want instead of the big house and expensive clothes.
Last Updated Sep 30, 2021, 1:59 PM IST
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