My monthly “Extraordinary Lives” series is a feature I really enjoy. The first interview highlighted JP Livingston, who retired with a net worth above $2,000,000 at age 28. Today’s interview is with Tanja Hester, who retired at the end of 2017 at 38.
You may know Tanja from the excellent blog Our Next Life. It’s one of my favorites, and I’m grateful she agreed to this interview.
In this conversation you’ll learn:
- How she managed to retire so early;
- How she maintains a comfortable lifestyle in a beautiful location;
- Her advice for pursuing early retirement, regardless of career;
- How she determined how much money they needed to retire;
- The sacrifices and tough choices she and her partner made;
This interview is full of practical, usable information.
I asked readers what questions to pose, so below you’ll see answers to your questions as well as some of mine about Tanja’s path and the strategies she used. Make sure you’re following me on Facebook so you can submit questions for future interviews.
Related content:
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- How I Paid Off Over $100,000 in Debt With the Help of eBay and Garage Sales
- How I Paid Off $40,000 In Student Loans in 7 Months
- How This Couple Paid off $204,971.31 in Debt
- How Tina Immigrated To America With Nothing and Now Has a Net Worth of $2,000,000
1. Tell me your story. How are you managing to retire so early?
Hi Michelle! Thanks so much for having me. We feel like we’re living a magical life as early retirees, but there’s no magic in how we got here. We spent significantly less than we earned for many consecutive years. Above-average salaries in our final working years helped — both of us earned six figures — and we made some deliberate, consistent choices. We didn’t get rich from an inheritance, a startup exit, or cryptocurrencies. Instead we stayed focused on our goal and worked toward it step by step.
Specifically, we focused on three main strategies:
1. Buying less house than lenders said we could afford. Though banks would have approved a much larger mortgage, we set a modest budget and stuck to it. Buying in 2011 at near-market lows helped, but even then we resisted buying more house than we needed. That discipline let us pay off our mortgage in just over five years, which reduced our fixed living costs and accelerated our path to early retirement.
2. Paying ourselves first and automating savings. We directed large portions of our paychecks automatically into savings and investments so that we never saw the money to spend it. We kept only a small portion in checking, which effectively constrained our spending and removed the need to use willpower to save.
3. Avoiding lifestyle inflation. For about a decade we banked every bonus and raise. Each year we increased our automatic investments at least as much as our pay rose, so our day-to-day spending never felt like it increased. Over time, those raises compounded into a substantial amount saved, and because it was gradual it didn’t feel like a sacrifice.
2. When did you begin saving for early retirement?
We’d been saving for multiple goals over the years — paying off consumer debt, buying a first home in LA, and purchasing our forever home in Tahoe — but we started saving specifically for early retirement in a focused way about six years before retiring. In the final four years we became extremely disciplined. Having a clear “why” and aligning decisions with that purpose made an enormous difference. Higher income helped accelerate our progress, of course; you can’t save more than you earn.
3. Was early retirement always your goal? What motivated you?
Mark and I always knew we didn’t want to work forever, but we didn’t have a precise timeline. Our jobs were demanding and high-stress, often requiring constant availability and frequent travel. While we valued the work, the toll on our physical and mental health made us sure we didn’t want that pace indefinitely. Once we realized that a few more years of intense saving could let us stop working entirely, continuing with focus became an easy choice.
4. Do you live comfortably now? Do early retirees really live on rice and beans?
I do enjoy rice and beans, but only occasionally. We live very comfortably: we own a single-family home in a stunning location, eat fresh mostly-organic food, ski multiple times a week, and travel internationally several times a year. We do avoid many mindless expenses and maintain a few unusual frugal habits — like keeping the house quite cool in winter — but we consider our life quite luxurious because we spend intentionally on the things we value and cut what doesn’t add real value.
5. What careers did you have and did they help you retire earlier?
Both of us worked for many years as political and social cause consultants — 16 years for me and nearly 20 for Mark. The work was meaningful but intense. The upside was strong compensation, which was a major enabler of our early retirement. High-pressure jobs can pay well, and in our case the income allowed us to save aggressively.
6. Advice for people who don’t make six figures — can they still retire early?
Yes. The core principle of financial independence — spend less than you earn and save the difference — applies regardless of income. If you can save even a modest amount consistently, you can pursue early retirement; it may just take longer. My practical tips: track your spending closely to understand where each dollar goes, ask which purchases provide lasting happiness, and cut spending that doesn’t add value. Also focus on increasing earning potential where possible. Side hustles can help early on, but at times committing to your primary career can yield promotions and raises that accelerate savings.
7. Will you earn income in retirement?
Our retirement is primarily funded by selling shares of stock and bond index funds saved during our working years, plus rental income from one property. We calculated a target savings number assuming we’d never earn another penny, and we reached that. Still, we expect to earn some money in retirement — not out of necessity but by choice. Early retirement often retains a hustler’s mindset, and we can now apply that energy to work we love or to community service. This year both Mark and I are doing a small amount of paid work — roughly 10–20% of our time — for projects we care deeply about.
8. How did you decide how much you needed to retire?
Your starting point should be understanding your annual spending. Many calculators base targets on income, which can be misleading if you don’t spend everything you earn. We wanted a two-phase plan so we could leave retirement accounts untouched for later-life security. Our 401(k)s already covered our “phase 2” living from age 59½ onward, so we focused on building a taxable investment portfolio sized to carry us through an initial ~18-year “phase 1.” We used conservative assumptions for market returns to provide a buffer against years of flat performance.
9. What sacrifices or hard choices did you make?
Because we automated saving and avoided lifestyle inflation, the process rarely felt like outright sacrifice. We did give up some conveniences like frequent dining out and looser travel budgets, but the clarity of our goal made those trade-offs easier. Two particularly difficult choices involved family support: we bought a rental property to help a relative with special needs and made a personal loan to help another relative avoid debt collection for medical bills. Those moves altered our original plan but were the right choices for our family and values.
10. How are you handling health insurance in early retirement?
We currently purchase health insurance through the Affordable Care Act marketplace. It’s more expensive than employer coverage, but it provides standard comprehensive coverage, which is very reassuring.
11. What are your long-term plans now that you have more free time?
We’re keeping plans open. I’ll continue writing the blog, and both of us are volunteering locally. We’ve traveled recently and have more trips planned. We’re considering a small motorhome for regional road trips and are focused on a life built around service, adventure, and creativity. Beyond that, we’ll see where opportunities and interests lead us.
12. Are you making lifestyle changes to reduce expenses in early retirement?
Yes. With more time, we cook more meals from scratch and shop smarter across stores to take advantage of better prices. We also DIY many projects that we previously hired out due to time constraints. Overall, we were already living at a level that allowed significant savings, so we don’t feel the need to trim extensively, but we’re enjoying small areas where time lets us be more cost-effective.
13. How did you stay focused on such a long-term goal?
Saving for early retirement takes years, so impatience is natural. We tracked progress regularly to see cumulative gains, automated savings to remove temptation, and avoided total deprivation. Allowing ourselves measured pleasures kept morale high. Balancing enjoyment now with planning for the future made the process sustainable and prevented burnout.
14. If you could start over, what would you do differently?
On a personal level, I’d avoid impulse shopping habits that cost money over time — know your spending triggers and steer clear of them. On a financial strategy level, we would have invested in more rental properties earlier. Real estate accelerated our path to financial independence and provided diversification we lacked when we relied solely on market investments.
15. What are your top tips for someone aiming for similar success?
First, don’t focus only on numbers. Clarify what you want your life to look like — what gives you purpose and joy — and decide what you’re willing to give up to achieve that vision. A clear purpose makes saving meaningful, not just a denial of present pleasures. Second, work both sides of the equation: reduce unnecessary spending and increase earnings. There’s a practical limit to cuts, but earnings have no upper bound, so prioritize both saving and growing income.
Are you pursuing early retirement? Are you saving toward retirement?