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‘It’s hard to frugal your way to early retirement,’ says self-made millionaire who retired at 34

By | Sam Dogen |

Hacking your finances — ordering water instead of cocktails, moving to a less expensive area or hoarding grocery coupons just to save a few bucks — has become a bit of an obsession among Americans, especially millennials, looking to get rich and retire early.

Eating $0.69 ramen and skimping on $8 avocado toast isn’t a bad idea … if you’re a broke college student. Once you’ve graduated and hit your 30s, however, it’s hard to frugal your way to early retirement.

Why? Because a couple hundred bucks isn’t a life-changing amount. The graph below, which uses data from the US Bureau of Economic Analysis, shows that household savings — or whatever income people have left after their spending — has little effect on boosting wealth:

An abundance mindset can make you rich faster

In 2012, I quit my job in finance and retired at 34 with $3 million. But it wasn’t penny-pinching that got me there; rather, it was in large part thanks to my abundance mindset. In the realm of abundance, everything — money, happiness, prestige — is plentiful.

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