I recently launched a new interview series featuring people doing remarkable things with their lives. First up is JP Livingston, who retired at 28 with a net worth of $2.25 million — and that total continues to grow.
About 60% of her net worth came from disciplined saving, while 40% resulted from investing and letting her money compound. That balance highlights why investing matters: it’s how your money works for you over time.
JP’s drive for early retirement was shaped by stories of financial insecurity in her family. The freedom early retirement provided was deeply appealing — and she achieved it while living in one of the most expensive cities in the world: New York City. She says she still enjoys a very comfortable, even luxurious, lifestyle.
Related articles:
- 21 Best Early Retirement Tips To Help You Retire Early
- Boldin Review: Is This the Best Early Retirement Planning Tool?
- Early Retirement Myths Busted
- Reaching Financial Independence IS Possible And Here’s How You Can Do It
- 75+ Ways To Make Extra Money
- 30+ Ways To Save Money Each Month
- The 6 Steps To Take To Invest Your First Dollar – Yes, It’s Really This Easy!
I asked readers for questions to pose to JP — follow me on Facebook to submit questions for future interviews. Below are those reader-submitted questions and some of my own, along with JP’s answers. You can also follow her work on her blog, The Money Habit.
P.S. If you want to visualize your own retirement options, consider trying a financial planning tool that helps you build an early retirement roadmap and test “what-if” scenarios. It’s useful whether you aim to retire early or just want more clarity about your financial future.
1. Tell me your story. How did you manage to retire at 28?
I wanted to retire from a young age. My parents grew up extremely poor — crowded households, lost family members, and parents who had to take low-paying jobs to survive. Those stories shaped my view of financial security.
When I explored careers in middle school, I loved writing but realized a writing career often meant income instability. I decided early that if I couldn’t reliably support myself through writing, I would aim to retire so I could pursue writing and other passions without financial pressure. That led me to read personal finance books and to adopt incremental, consistent improvements over time.
My tactics included optimizing for raises and promotions, living frugally, learning to invest, and developing analytical skills — especially spreadsheet modeling. I found an 80/20 dynamic: a few focused changes produced most of the results. Those small, regular improvements compounded over time, and by age 28 my net worth was $2.25 million.
2. How did you reach $2,250,000 by 28? When did you begin saving?
Around 60% of my net worth came from saving, 40% from investing. I started saving early — habits formed in childhood mattered — but I also made strategic, sometimes unconventional decisions.
One example: I graduated college in three years. I had scholarships to a state school but chose a private college for perceived opportunities and then shortened my time there to save a year of tuition and start earning sooner. My first job paid well and included a substantial bonus; graduating early changed my net worth trajectory by roughly $150,000. Early savings like that, compounded over decades, make a huge difference.
Related: How I Paid Off $40,000 in Student Loans in 7 Months
3. What made you want to retire early?
The main motivation was freedom. The year before I retired included several deaths and major health scares among people I love, which made me realize how limited our healthy years can be. I didn’t want to spend those years stressed and tied to a job.
4. What sacrifices did you make to reach this milestone?
I don’t view my choices as sacrifices so much as trade-offs. I chose experiences and long-term freedom over short-term purchases. Thinking of purchases as “hours of your life” spent — a framework from the book Your Money or Your Life — helped me prioritize. When you estimate how many hours of work a purchase costs, you naturally buy less and prioritize investments that buy you time and freedom.
5. Would you say that you live comfortably?
We live an incredibly comfortable, even luxurious life by my standards. There are still areas we could trim, but overall we live well.
6. What career did you have before you retired? Did that career help you retire earlier?
I worked as a professional investor at a finance firm. That role was both lucrative and educational — I initially planned it as a short stint but it continued because the work was compelling and the pay was strong. The investment frameworks I used at work also helped me manage my personal portfolio more effectively.
7. Can people who don’t earn as much as you still retire early?
Absolutely. The key is consistent, small improvements. Over time, the person who consistently applies modest improvements will accumulate far more wealth than someone who doesn’t. The bar for retirement in the U.S. is relatively low: many people work into their 60s and still have modest savings. With smart habits and steady progress, early retirement is achievable for many.
8. What do you do now that you’re retired?
I focus about 10 hours a week on a major project: a personal finance site where I help others retire early. The rest of my time is filled with hobbies, reading, and enjoying the city. Everyday tasks and simple pleasures are much more enjoyable when you aren’t stressed for time.
9. How will $2,250,000 last your whole life, starting at 28?
My plan is informed by historical research like the Trinity Study, which found that a 4% inflation-adjusted withdrawal rate from a diversified stock-and-bond portfolio was likely to sustain a 30-year retirement. Because my retirement horizon is much longer than 30 years and because recent market returns have been lower than the periods studied, I chose a more conservative approach and plan to withdraw 3% annually.
At 3%, a $2.25 million nest egg yields about $67,500 per year. My husband and I currently spend roughly $65,000 a year living in an expensive city, so the math supports our lifestyle. I also modeled a family-of-four budget using real local data and found that a nest egg around $2.23 million would support that scenario, which gave additional confidence.
Beyond the calculated budget, we built multiple safety margins:
- Conservative Withdrawal Rate: Using 3% rather than 4% effectively overstates our needs and adds safety.
- Extra Buffer: We maintain an additional cash buffer for unexpected costs.
- Return-to-Work Option: Either of us could work full time again if necessary.
- Income-Earning Hobbies: We could generate income through side projects or passions.
- Discretionary Flexibility: Nearly 20% of our budget is discretionary and can be trimmed in tough years.
- Healthcare Subsidies: We didn’t assume ACA subsidies, though we may qualify for them.
- Market Outperformance: Markets may outperform our conservative projections.
- Home Equity/Reverse Mortgage: Home equity solutions are available for temporary needs or late-life support.
- Past Employer Grants: Profit-share or deferred compensation could end up higher than estimated.
10. Do you still earn an income?
Not currently. I might pursue interesting work in the future, but it would be for fulfillment rather than necessity. I have some deferred compensation from my previous employer, and my husband continues to work because he enjoys his job.
11. How did you decide how much you needed to retire?
I applied a probabilistic, scenario-based approach similar to what I used as a professional investor: modeling multiple scenarios, estimating outcomes, and assigning probabilities. That helped me triangulate to a realistic target number for our circumstances.
12. If you were starting over, what would you do differently?
Two main changes:
- Prioritize Momentum: Focus on building early momentum with manageable, consistent habits rather than relying solely on willpower or buying lots of books. Join communities and follow bite-sized content that keeps you engaged every day.
- Tackle the Right Steps in Order: Understand the most impactful levers at each stage of wealth building and act accordingly. As your resources grow, new opportunities (like investing in high-appreciation real estate) become available — missing those can be costly.
13. Is retiring what you expected? Do you miss work?
Retirement is far better than I imagined. There was a learning curve at first, but today I often tell my family I’m living a version of my dream life. I do miss regular interaction with smart people sometimes, but running a blog and engaging with readers has restored a lot of that connection.
14. What are your best tips for someone aiming for similar success?
Ask questions. Be the person who reaches out, comments thoughtfully, and asks specific, well-researched questions. People are often willing to share advice if you show you’ve done the homework and make it easy for them to help.
Focus on habits and systems, not short-term results. Big goals are achieved through consistent, long-term effort. Build systems that get you to show up each day and make one small improvement. Over time, those systems will outperform sporadic bursts of discipline and lead to lasting success.
Are you interested in retiring early? Why or why not?