At 18, Ronnie T. was stocking shelves at a local grocery store in Memphis, Tennessee, making minimum wage and living with his grandmother. By 39, he had enough passive income to retire early. Here’s how he did it, and the tough lessons he learned along the way.
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The Wake-Up Call
“I remember counting quarters for gas,” Thompson remarked of his early days. “My grandmother sat me down one night and said, ‘Baby, you’re either going to let money run your life, or you’re going to learn to run your money.’ That hit me hard.”
Starting Small
Thompson’s first move was radical for a teenager: He lived with his grandmother for four years, banking 70% of his paycheck. “People laughed when I brown-bagged my lunch and rode the bus. But after two years, I had $22,000 saved up. That was my seed money.”
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The Education Hustle
While working full time, Thompson took night classes in IT at the local community college. “Four years of no social life,” he admitted. “But my starting salary in tech support was $45,000. I kept living like I was making minimum wage though. That was key.”
The Real Estate Game-Changer
By 28, Thompson had saved enough to buy his first property — a run-down duplex. “I lived in one unit, fixed up the other and rented it out. My housing cost was basically zero after the rental income.” He repeated this pattern six times over the next eight years.
Compound Interest: The Silent Partner
“The magic happened in my boring old index funds,” Thompson said. “I put $2,000 a month into low-cost index funds, starting when I was 22. By 39, just that account was worth over $900,000. The market did most of the heavy lifting.”
The Numbers That Made It Work
His retirement income now comes from multiple sources:
- Seven rental properties generating $12,500 monthly (before expenses)
- Investment portfolio providing about $4,000 monthly
- A small consulting business he runs for fun: $2,000 to $3,000 monthly
The Reality Check
“Look, I got lucky with timing in the housing market,” Thompson said. “But the principles work in any market: Live below your means, invest consistently and create multiple income streams. I ate a lot of ramen to get here.”
Life Now
At 39, Thompson’s days are his own. “I’m not sitting on a beach somewhere. I still work on my properties and do some consulting. The difference is, I do it because I want to, not because I have to.”
His grandmother’s advice still guides him. “She passed away last year, but she got to see me retire early.”
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This article originally appeared on GOBankingRates.com: I Went From Making $7.25 an Hour to Early Retirement at 39 — Here’s How
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