Woman shares secret to retiring at 35 and how you can too
The Journey of Kate and Alan Donegan to Early Retirement
Kate and Alan Donegan, a couple who have achieved financial freedom by the age of 35, have shared their journey of saving enough money to retire early. Their story is one of careful planning, disciplined saving, and smart investing.
The couple, who met during a volunteer project in Costa Rica in 2005, have built a life that revolves around travel, volunteering, and helping others achieve financial independence. They are now worth £2 million, and they use their time to offer free courses on how others can create a nest egg too.
Early Steps and Financial Planning
After meeting, they lived with Alan's mother to save for a home deposit. By 2010, they had saved £42,000 and bought a two-bedroom flat in Basingstoke for £167,650. In 2013, they tied the knot in a DIY wedding that cost just £12,000, enjoying the day with 180 guests without draining their bank accounts.
In 2015, they discovered the FIRE (Financial Independence Retire Early) movement and set an ambitious goal: to have £1 million in investments in just three years. With £291,000 already in their savings, they implemented money-saving measures such as never using heating, not eating out, and always using coupons and vouchers.
Katie worked as an actuary earning £58,000, while Alan earned £63,000 running training courses. They focused on increasing their income, with Katie quitting her job to work as a contractor, which yielded a bigger salary.
Building a Nest Egg
By Autumn 2018, the couple had saved £898,000 and invested it in low-cost global index funds. Being on the same page when it came to finances made reaching their goals easier. In the evenings, they would take long walks together, discussing tax, investing, and financial independence.
They created a project list, learned how to invest together, and focused on making their gap between what they earned and what they spent as big as possible. Their lifestyle was relatively modest, and they kept their fixed costs low, allowing them to focus on increasing their earnings.
Stages of Building a Nest Egg
The task of building a large money pot can seem overwhelming, so the couple approached it in stages:
- Stage 1: Get stable. They built an emergency fund first.
- Stage 2: Create a gap on purpose. They tracked every pound and asked if each expense added real value.
- Stage 3: Earn more. They looked for ways to increase income rather than only cutting costs.
- Stage 4: Invest the gap simply. They used tax-efficient accounts like ISAs and SIPPs and chose low-cost global index funds.
- Stage 5: Keep costs and complexity low. Fees are the silent killer.
- Stage 6: Measure and automate. They automated transfers on payday and held monthly finance meetings.
Gamifying Saving
To make saving easier, the couple decided to 'gamify' saving, giving themselves challenges. They turned saving into a game, focusing on creativity and freedom. Challenges included not turning the heating on in winter, never charging their phone at home, and voucher hunting.
They also downgraded their car for a smaller one, making significant savings on fuel and road tax. They focused on low-cost social activities, inviting friends to their home and cooking all their meals at home.
Strategising and Communication
Strategy was key when it came to sticking with their goals, as well as communicating about how their finances were going. They had monthly 'finance dates' and 'walk and talk strategy sessions'. They shifted their mindset, living like no one else would for years so they could live like no one else could for decades.
Tips on Saving
Alan and Katie shared their top tips for people who want to save money:
- Track your spending – this is the critical step.
- Create a gap – cut what doesn't matter.
- Reframe saving as buying freedom.
- Invest simply – don't overcomplicate it.
- Let compounding do the heavy lifting.
- Make it fun.
Life After Work
Having financial freedom means the couple are able to design the lifestyle they want, which they describe as being about freedom, adventure, and purpose. They sold everything, put their flat on the market, and became fully nomadic. They have travelled to more than 50 countries and continue to manage their money with the same principles as before.
Finding Financial Freedom
Now the couple have financial freedom, they help other people achieve it by offering free courses through their organisation Rebel Finance School. They received the British Empire Medal for services to financial education and continue to volunteer their time teaching money through their school.
Their journey shows that with careful planning, discipline, and a focus on values, it is possible to achieve financial freedom and live a life of purpose and adventure.