Save money to retire at 34

The American engineer saved enough money to retire early at the age of 34, then be free for the rest of his life.

Last August, Brandon achieved financial independence and retired early at age 34. He shares his thoughts on money and how he achieved his goal on his personal blog Mad Fientist. Here are Brandon’s 7 key takeaways on money and money management:

Photo: Brandon, a software development engineer who just retired at the age of 34.

1. Figure out what makes you happy

The first and most important thing is to figure out what really matters to you and what makes you happy. Many people don't realize that they are spending money on things that don't bring them happiness, because they are caught up in the same life scenario as many others.

You don't have to buy a house just because all your friends are doing it, nor do you have to buy a car just to impress others.You don't have to live someone else's dream.

When I realized that money could buy me freedom, so that I could comfortably spend my time from 9 to 17 every day, I decided to save money to buy freedom.I don't regret the things I had to give up to save money for financial independence, because freedom is the most important thing to me.

2. Focus on what you can control

Instead of stressing about what's happening in the economy or trying to predict how the stock market will move, focus on the things within your control and be optimistic about them.

Investment fees can add up to hundreds of thousands of dollars over the course of your investment, so minimize them by investing in low-cost funds.

Minimize risk by buying stocks in the market through a fund with high capital, insurance and good business experience.

Minimize the taxes you pay by using legal tax avoidance strategies.

3. Automate everything

Once you have a portfolio of mutual funds and tax-advantaged accounts, set up automatic monthly investments and forget about your portfolio altogether.

If you can separate your thoughts and emotions from your investing, you will not only be less stressed during market downturns, but you can also end up making a lot of money.

4. Stop enjoying and be creative

Indulgence gives us temporary pleasures but creation can bring lasting happiness.

It’s easy to come home from work and spend four hours in front of the TV relaxing. On the other hand, it’s much harder to do creative work like blogging, crafting, or playing music. However, in the long run, creativity will bring you more rewards and may even increase your income.

5. Throw the TV out the window

Of course you don't have to throw away the TV, you can sell it online or at a flea market.

On TV, advertisers constantly bombard you with things you "must have," you become less satisfied with what you have and more likely to spend more money (which unfortunately doesn't make you any happier).

Plus news reporters are always talking about terrible things happening which makes you more fearful and less willing to go out and explore the world, which is now easier than ever.

6. Travel to other countries

If you are struggling with spendingand feel like you need more expensive things to be happy, go anywhere else in the world and you will find yourself more fulfilled than a lot of people.

7. Finally, experiment with your spending.

What makes you happy today may not make you happy tomorrow, so experiment and don't lock yourself into a big commitment. Try before you buy. Rent instead of own. Borrow when you can.

The road to happiness and financial independence is not smooth, you may make mistakes along the way, but when you focus on long-term happiness and organize your spending around a common goal, you will be confident that you are on the right track.

According to VNE