29-Year-Old Software Engineer With $135,000 Salary Plans To Retire By 35, Says He's In Top 0.1% Of Most Frugal People

Tanner Firl, a 29-year-old software engineer from Minneapolis, Minnesota, has an ambitious goal: to retire by age 35. With an annual salary of $135,000, Tanner has already saved $380,000 for retirement. His secret? Extreme frugality and strategic investing.

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Tanner believes his frugality sets him apart. "If I had to guess, I'd say in terms of the entire population, I'd probably be in the top 1% of most frugal people, maybe top 0.1%," he told CNBC Make It. His lifestyle reflects this. He often finds ways to get their furniture and other items for free or cheap online and from friends and family. 

Tanner and his wife, Isabel, prioritize inexpensive hobbies. "We've decided to invest in cheaper hobbies than most people. Board game meetups led me to meet a few folks I enjoy spending time with, so we get together regularly to play board games. We have everything we need and we're generally really happy," he shares.

Living in South Minneapolis with his wife, their child, and three cats, Tanner has always been the primary income generator. Isabel also contributes by making money from her hobbies and managing their household. Their financial strategy is focused on the Lean FIRE (Financial Independence, Retire Early) movement, which involves saving money at a higher rate than most people aiming for early retirement. "We put about 50% or so of our paycheck, maybe a little more, toward savings," Tanner explains.

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His investments are diversified across various accounts. "My personal brokerage account has $221,000 in it. My Roth IRA has $57,000. My health savings account has $26,000, and my 401(k) has $75,000." Tanner's retirement goal is somewhat flexible. "My lower bound for retirement is $625,000 because I figure I need about $25,000 a year to live on."

Tanner's frugality extends to his childhood. "We were always very frugal growing up. Whenever we wanted something, we had to spend our own money to buy it or wait until our birthday or Christmas. That led to me and all my siblings having newspaper routes where we delivered newspapers every day."

He met Isabel in high school and graduated from the University of Minnesota with a bachelor's degree in mathematics in 2015. Tanner's first job out of college was at the National Security Agency, where he made about $66,000 per year. His strategy was always to maximize his 401(k) contributions and invest in index funds.

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Tanner admits he initially took his frugality to an extreme. "I would get very anxious about saving as much money as humanly possible. I put off having kids because I wanted to make money. Thankfully, I have done a complete 180 on those issues. I'm still very frugal, and spending money makes me a little anxious, but I've learned it's OK if it takes me a year or two longer to retire if it means I can enjoy the present significantly more."

In 2017, Tanner and Isabel purchased their first home, using Airbnb to cover their mortgage. They bought their 675-square-foot home in 2018 for $185,000 and welcomed their first child in 2021. The couple spends about $200 monthly on groceries and cat supplies, often finding deals through Craigslist and the nonprofit Ruby's Pantry.

Tanner's hobbies include running, listening to podcasts, playing video games with Isabel, and baking. "I think a lot of things that bring people fulfillment and happiness in life don't cost much money. Most experiences that will make you happy are probably free or extremely cheap."

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