- Annie Cole has left her role as vice president to focus on family and launch a financial coaching business.
- Cole went from a salary of $26,000 to the retirement plan at age 45 through four stages.
- Her strategy includes mindset changes, value delivery, investment and diversification of income sources.
This essay as told is based on a conversation with Annie Cole, the 35-year-old founder. Essential money for women in Vancouver, Washington. It has been edited for length and clarity.
In 2012, I got my first job out of college as a social worker, making $26,000. After two years of emotionally hard work, I entered education.
I began working in a university’s student academic resource center helping first-year and at-risk students navigate the college experience. Two years later, I was promoted to an academic advising role.
I then worked as a research coordinator until I finished my EdD program and landed a job as a research analyst at a global ed-tech nonprofit. I loved and excelled at my job and received two executive promotions and several raises.
However, this year was the perfect time to step back from my VP role and make two big moves: spend more time with my family and launch my own business. It was scary, but I knew I was ready.
I moved into a part-time consulting role for my old company and went all in on growing my financial coaching business, Money Essentials for Women.
I set out to retire at age 45 in 10 years, but moving from a $26,000 salary to an early retirement plan came in stages.
Phase 1: I change my money mindset
When I was about to finish my EdD program, I started looking for jobs and something clicked. We only make $32,000. I opened Indeed and set my filters for jobs that paid $40,000, which seemed like a reasonable salary increase.
Then this thought occurred to me: What if you chose something bigger? How about $60,000? I only applied for higher paying jobs and within a few months I landed a research analyst job with a salary of $60,000.
I got a raise of almost $30,000 just because I changed my mind about my worth.
Phase 2: Learn how to deliver massive value
Being promoted isn’t just handed to you, it’s truly earned. Sometimes I just wanted a clear job description, show up to do that job, then go home and not think about work. I got my promotions because I didn’t just show up and be told what to do.
I showed up daily and asked myself: How can I help this company achieve its biggest strategic goals faster and more effectively? How can I directly contribute to these goals every day?
It takes seriousness, forward thinking and hard work to help a new company grow, and I was up for the challenge. The more value I provided to the company, the more I was rewarded with promotions and raises.
Phase 3: Investment
I always invested in my retirement account, even when I earned $26,000. Once I started making more money, I became aggressive with my investment goals.
I started reading personal finance books and following financial influencers online and slowly learned everything from how the stock market works to different retirement accounts and investments.
I invested in my traditional retirement account, a Roth IRA, and a brokerage account. I kept my budget as minimal as possible to focus on front-loading my investment accounts when I was young.
My husband and I also added our first investment property in 2023, which gives us both rental income and appreciation from the home market.
Phase 4: Thinking beyond the 9 to 5
Trading my time for money is great, but it will always be limited. I set up additional sources of income to make money when I’m not actively working on them.
I just launched a two-week online program for my financial coaching business that women can take asynchronously. I also recently wrote an e-book that I sell for $24.99 that has all of my best tips in one place.
This year, I will make about $60,000 from real estate rental income, $130,000 from consulting and coaching work, and about $30,000 from investment account growth.
I have $345,000 invested right now
I will be very focused on investing for the next 10 years (about $45,000 annually) and expect an annual growth rate of 10%. When I turn 45, I’ll have over $1.6 million.
Using the 4% rule, that would give me just under $65,000 to live on annually when I retire, which is more than my budget now.
The above is based on my investment portfolio, which does not take into account my real estate investment property, the equity in my primary residence, and the ongoing income from my company’s online courses and books, which will continue to pay me after 45 years.
Here’s what I do to make sure the plan works
The traditional definition of retirement is when you give up work for good and live off your investments and savings. Most recently, however, the FIRE (Financial Independence, Early Retirement) movement has expanded this definition.
Now, you might “retire” from full-time work at age 50, but keep a 10-hour-a-week job at Starbucks to supplement your income (this is called Barista FIRE, where you work part-time until retirement).
I propose a traditional retirement when I turn 45. I am open to the possibility that I would like to run my own business by then. For me, it’s all about having options.
I do these three things constantly to make sure I stay on track:
- I use a personal finance monitor every month to track my expenses, income and investments. I built my tracker years ago because I couldn’t find one that met my needs online.
- I know exactly how much I need to save, spend and invest to reach my goals and stay on track with my commitments. I used to think that investing so much would be a deprivation, but I don’t miss this money. I fill my days with things that are fulfilling and free or low-cost.
- I’m not afraid to adapt as life happens. If a trip comes up or a chance to throw a party for my best friend’s engagement, I’ll do it. Life is too precious not to take advantage of those special moments.
You don’t have to make a lot of money to invest enough to retire early
Putting aside even the smallest amount of money can seem like a waste of time when the alternative is to spend it now on a new shirt, better groceries, or toys for your kids.
If you start making more money, it’s just as hard. Lifestyle is real and you will probably find other things to spend your money on no matter how much you earn.
The best way to invest more is to imagine how it will benefit you and your loved ones. Every time I invest, I know I’m giving myself a gift to my future self. I’m multiplying every dollar I’ve worked so hard to earn.
Even at 30, I’m already reaping the rewards and seeing my account grow beyond six figures. Every investment is worth it, no matter how small.
Want to share your early retirement story? Email Lauryn Haas at lhaas@businessinsider.com.