I’m on track to retire at 45. I started my career earning only $26,000 and followed this 4-phase plan.

Annie Cole invests around $45,000 every year.

This as-told-to essay is based on a conversation with Annie Cole, the 35-year-old founder of Money Essentials 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, earning $26,000. After two years of emotionally hard work, I pivoted into education.

I started 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 into an academic advising role.

Next, I worked as a research coordinator until I finished my EdD program and got a research analyst job with a global ed-tech nonprofit. I loved and excelled at my work, and I received two executive promotions and several raises.

Still, this year felt like the perfect time to step away 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 building out my financial coaching business, Money Essentials for Women.

I’ve set myself up to retire at age 45 in 10 years, but transitioning from a $26,000 salary to an early retirement plan came in phases.

Phase 1: Changing my money mindset

When I was about to finish my EdD program, I started searching for jobs, and something clicked. I was only making $32,000. I opened up Indeed and set my filters for jobs that paid $40,000, which seemed like a reasonable salary increase.

Then I had this thought pop into my mind: What if you just went for something bigger? What about $60,000? I only applied for higher-paying jobs, and within a few months, I got a research analyst job with a $60,000 salary.

I got nearly a $30,000 salary jump just because I changed my mind about my worth.

Phase 2: Learning how to provide massive value

Getting promoted isn’t just handed to you — it’s truly earned. Sometimes, I just wanted a clear job description, to show up to do that job, then go home and not think about work. I received my promotions because I didn’t just show up and want to be told what to do.

I showed up daily and asked myself, How can I help this company reach its biggest strategic goals quicker and more efficiently? How can I directly contribute to those goals every day?

It takes grit, 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: Investing

I always invested in my retirement account, even when making $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 I slowly learned everything from how the stock market worked to different retirement and investment accounts.

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 while I was young.

My husband and I also added our first real-estate investment in 2023, which simultaneously gives us rental income and home market value growth.

Phase 4: Thinking beyond the 9-to-5

Trading my time for money is great, but it will always be limited. I’m setting up additional income sources 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 go through asynchronously. I also recently wrote an ebook I sell for $24.99 that captures all of my best tips in one place.

This year, I’ll make about $60,000 from real estate rental income, $130,000 from consulting and coaching work, and about $30,000 in investment account growth.

I have $345,000 invested right now

I’ll focus heavily on investing over the next 10 years (about $45,000 annually) and expect a 10% annual growth rate. When I turn 45, I’ll have over $1.6 million.

Using the 4% rule would give me just under $65,000 to live on annually when I retire, which is higher than my budget now.

The above is based on my investment portfolio, which doesn’t consider my real-estate investment property, the equity in my primary residence, and continued income from my business’s online courses and books that will still pay me after I’m 45.

Here’s what I’m doing to ensure the plan works

The traditional definition of retirement is when you quit working for good and live off your investments and savings. Most recently, though, the FIRE movement (Financial Independence, Retire Early) has expanded this definition.

Now, you might “retire” from your full-time job in your 50s but keep a 10-hour-per-week job at Starbucks to supplement your income (this is called Barista FIRE, where you work part-time into retirement).

I aim for a traditional retirement when I reach 45. I’m open to the possibility that I might want to keep running my own business by then. For me, it’s all about having options.

I do these three things consistently to make sure I stay on track:

1. I use a personal financial tracker every single month to track my spending, income, and investments. I built my tracker years ago because I couldn’t find one that met my needs online.
2. I know exactly how much I need to save, spend, and invest to reach my goals, and I stay on track with my commitments. I used to think investing so much would feel depriving, but I don’t miss that money. I fill my days with things that are fulfilling and free or low-cost.
3. I’m not afraid to adjust as life happens. If a trip or a chance to throw a party for my best friend’s engagement comes up, I will go for 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

Setting aside even the tiniest 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 creep is real, and you’ll probably find other things to spend your money on, no matter how much you make.

The best way to invest more is to envision how that will benefit you and your loved ones. Every time I invest, I know I’m giving my future self a gift. I’m multiplying every single dollar I worked so hard to earn.

Even in my 30s, I’m already reaping the rewards and seeing my account grow beyond six figures. Every investment is worth it, no matter how small.