- Many Gen Z Americans are prioritizing financial savviness, aiming for early retirement.
- Young Americans invest more than previous generations; two-thirds save for retirement early.
- Four Gen Zers said they’re embracing FIRE principles like cutting spending and diversifying income.
Gen Z is becoming more financially savvy — and many are doing whatever they can to retire early.
Many more young Americans are investing compared to their parents in their early- and mid-20s, and two-thirds of Gen Z has already started saving for retirement, according to the Transamerica Center for Retirement Studies.
Four Gen Z Americans told Business Insider they’ve followed the principles of the FIRE — financial independence, retire early — movement to achieve a high net worth before their 30th birthdays. These include cutting back on spending, investing in index funds and real estate, having passive income from side hustles, and maxing out retirement accounts early.
Some said they don’t intend on following the “retire early” part of the acronym and instead want to pursue their passions while making money doing so.
Their stories vary widely, from a serial entrepreneur, to a Boeing engineer, to an enlisted sailor in the Navy. But all four emphasized that their sacrifices and risks earlier in life may be the key to their financial stability down the road.
Cody Berman, entrepreneur and “passive income expert”
Cody Berman, 28, hit financial freedom at 25 but has no plans to retire early. He started a handful of businesses in college, some of which failed. He achieved success with his disc golf manufacturing company.
“I had always thought of ‘rich’ people being people who made a really high dollars per hour — doctors, lawyers who make $200, $300 an hour,” Berman said. “Then I realized that you didn’t actually have to trade your time for money on a linear basis. You could trade your time, your energy, your money, for things were going to pay you perpetually, whether or not you’re working on them.”
He got a corporate job as a commercial real estate lender but worked on side hustles each morning and night, sometimes working 15-hour days. He left his job after seven months and went all in on freelancing, digital products, blogging, and podcasting.
At 25, he made about $400,000 in a year from side hustles, which is when he considered himself financially independent. He saved about 90% of his income, investing most of his money into index funds and his portfolio of 11 rental properties.
“I’m not in the FIRE movement for the RE part,” Berman said. “I love building businesses.”
His net worth is about $2.8 million, but he drives a 2015 Nissan truck approaching 100,000 miles. He and his wife live in a one-bedroom property and rent out a four-bedroom property next door. Cutting back on housing costs allowed him to spend almost $10,000 a month in travel, dining, and concerts.
Berman co-founded Gold City Ventures, which helps others launch Etsy businesses selling printables through workshops and courses. Berman said they’ve seen people quit their corporate jobs and make much more through online selling.
Jubilee Bosch, engineer taking a sabbatical
Jubilee Bosch, 26, has worked as an engineer in St. Louis since graduating from college, though with over $190,000 in net worth, she’s taking a sabbatical.
Bosch was raised in a lower-middle-class family in California by a stay-at-home mom and military father who worked three jobs until starting a house-cleaning business. Though raised to be frugal, she never learned how to invest.
After attending community college and a four-year college, she got a mechanical engineering degree and graduated debt-free due to merit scholarships, college jobs, and some assistance from her parents.
After an internship, she was hired full-time by Boeing, making $64,000. She struggled to transition to the corporate world and burned out quickly, but she kept rising up the ranks, negotiating a promotion and a salary increase to $95,000 a year. Around this time, she read about strategies for reaching financial independence, and increased her investments while helping her friends open Roth IRAs.
She kept expenses to about $22,000 a year and put most of her savings into the market. She moved into a smaller space with her partner,…
Read More: FIRE Gen Zers’ Passive Income, Side Hustle, Budgeting Strategies