From Investment Banker to Early Retirement: How This Kiwi Millennial Achieved Financial Freedom in Her 30s
Jumoke has always been what she describes as a “finance nerd.” Even before entering the high-pressure world of investment banking, she was fascinated by money and how it worked. This early interest wasn't about lavish spending; it was about understanding the principles of wealth creation. She devoured books on personal finance, followed market trends, and started investing early – a crucial factor in her eventual success.
Her career as an investment banker provided a substantial income, but Jumoke was determined not to let it define her. She adopted a strict budgeting system, prioritising saving and investing over lifestyle inflation. “It's easy to get caught up in the lifestyle creep that comes with a higher salary,” she explains. “But I consciously avoided that trap. I lived below my means and funnelled as much as possible into investments.” She focused on maximizing her savings rate, consistently putting a significant portion of her income aside.
Jumoke’s investment strategy wasn't about chasing quick wins. Instead, she focused on long-term growth and diversification. She invested in a mix of assets, including index funds, ETFs (Exchange Traded Funds), and a small allocation to individual stocks. “Diversification is key,” she stresses. “You don’t want all your eggs in one basket. Spreading your investments across different asset classes helps to mitigate risk.” She also emphasized the importance of dollar-cost averaging, investing a fixed amount regularly regardless of market fluctuations.
By her mid-30s, Jumoke had amassed a substantial portfolio that generated enough passive income to cover her living expenses. This allowed her to make the bold decision to retire from investment banking. “It wasn’t about escaping work,” she clarifies. “It was about having the freedom to choose how I spend my time. I wanted to pursue other interests and passions without the constraints of a traditional career.”
Jumoke’s story provides valuable lessons for Kiwi millennials striving for financial independence. Here are a few key takeaways:
- Start Early: The power of compounding interest is your greatest asset. The sooner you start saving and investing, the better.
- Live Below Your Means: Avoid lifestyle inflation and prioritize saving.
- Invest Wisely: Diversify your investments and focus on long-term growth. Consider low-cost index funds and ETFs.
- Automate Your Savings: Set up automatic transfers to your investment accounts.
- Seek Financial Education: Continually learn about personal finance and investing.
