If you ask Francis what’s the best way to retire early, his answer is simple: don’t.
For years, the 42-year-old has gone to great lengths to achieve FIRE, which stands for financial independence, early retirement. But in reality, life without a job is not what most people want,” he says. It’s a lesson he himself learned after retiring at the age of 37 in 2017.
“I think doing FIRE is probably the wrong idea,” Francis, who asked not to reveal his last name for privacy reasons, told CNBC Make It. “I don’t think most people want to retire early. I think most people want some sort of sabbatical. They are unhappy with their careers and want to take a very, very long vacation. Maybe a year or two. .”
The same grievances led him to leave his job as an electrical engineer, where he earned a base salary of $120,000 plus $30,000 to $60,000 in capital and bonuses. But Francis describes life without a job as “really boring.” In his case, he decided to devote himself entirely to his YouTube hobby and now makes money making videos for his 350,000 subscribers.
I don’t think most people want to retire early. I think most people want to… take a very, very long vacation.
Francis quit his job in 2017 with $1.2 million in savings and investments. He first heard about FIRE in 2013 and decided to dedicate himself to achieving it. His early retirement strategy boiled down to one main factor: spend as little money as possible.
The first step was to pay off the mortgage on his house, which was worth $22,000 a year. When he got into it, he also worked to cut his expenses wherever he could.
“I overcame a lot of obstacles to save money and keep my expenses as low as possible,” Francis says. His cost-cutting measures ranged from not paying for any streaming services, to having him use all the food in his fridge, to even being without a cell phone for a short time.
Going hands-free “hasn’t been very successful, but I think it’s important to overdo it, be too uncomfortable,” he says. Eventually, with his house paid off, Francis was able to cut his annual expenses down to less than $15,000.
His education in electrical engineering also helped him cut down on household expenses. He installed his own water heater and fixed his garage door when the power went out. He also built a solar panel system in his backyard that supplies a small amount of electricity for free.
“I never call a handyman because I am a handyman,” Francis says. “All my appliances are very, very old because they never break. If they break, I fix them and they’re like new.”
I never call a jack of all trades because I am a jack of all trades.
Francis is also a credit card scoring master. It uses a process known as churning, which involves cycling through different credit cards to maximize points, and has over 20 active credit cards at any given time.
“You have to have a really high credit score to beat these credit cards,” he says, adding that his own score is 835. “A lot of people think it’s a hassle, but for me personally, it gives me pleasure. a lot of value.”
After two years of early retirement, during which he enjoyed time off work and traveled frequently, Francis came face to face with the boredom he warns most people will experience if they quit their jobs at a young age. His decision? Return to work.
In 2019, Francis began doubling down on his YouTube channel and releasing videos regularly. He originally launched the channel in 2013, posting videos ranging from how to make fake shark fin soup to strategies for the popular 2048 game.
After two years of retirement, Francis decided to spend more time with his YouTube channel.
Tri Nguyen
He turned to financial topics, talking to viewers about credit ratings and investing. As his views began to rise, so did his earnings. While his workload fluctuates depending on his mood — some weeks he works nearly full-time, others just eight hours — he has over 350,000 followers.
In his prime months, he generates around $10,000 in YouTube revenue. It still maintains its $15,000 annual budget and uses the income to pay for its living expenses. The rest goes to his investment accounts.
It’s a project that brings him more joy than his previous 9 to 5 job, and he plans to stick with it for years to come.
“Now I don’t call myself ‘retired’ anymore because I’m fully committed to YouTube,” Francis says. “I would like to put a lot more work into it and grow it … I think the work is not done yet.”
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