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This 26-year-old with $148,000 in the bank is on track to retire at 37 - here's his playbook

Sep 20, 2016, 21:55 IST

Samantha Lee/Business Insider

Most people don't start saving for retirement until they land their first "real" job as a 20-something. Even then, they're often lazy about setting up their 401(k) and putting any extra cash away with consistency.

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But the story is different for the Money Wizard, a 26-year-old financial analyst and blogger with a six-figure net worth who started saving before he could even get behind the wheel of a car.

"I remember my 8th grade math teacher posed the magical doubling penny question to us, which opened my mind to the power of compound interest," the Money Wizard - who goes by the pen name Sean online - told Business Insider.

"I still remember his exact quote," he said. "'Instead of buying a few CDs with your money, you could be a millionaire.'"

A few years later, Sean realized that his grandfather, "one of the cheapest guys" he knew, was actually a millionaire. "He never made more than a low five-figure, blue-collar salary, but he used the stock market to save his way to $1.2 million in investments [by age 60]."

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Inspired by his grandfather's financial finesse, he started saving any extra cash he earned from his first job at age 16. Later, after reading a book called "Early Retirement Extreme" by Jacob Lund Fisker, he became determined to reach financial independence by age 37.

At 22, he graduated college with a degree in finance and economics and got hired as a financial analyst in Denver making $45,000 a year. He immediately set up his employer-sponsored 401(k) and contributed 5% of his pre-tax salary, which was fully-matched by the company.

Now, three and a half years later, Sean's salary is $70,000 and his 401(k) contribution - just one of his vehicles for saving - is up to 25%.

Last year, at age 25, his net worth reached $100,000. That's when he started his blog, My Money Wizard, to share his ambitious journey to early retirement.

As of August 2016, Sean's net worth was nearly $150,000. Below, he talks us through the growth of his savings accounts and why each one is vital to achieving his goal of retiring before 40.

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Although Sean requested anonymity, Business Insider reviewed tax and bank statements that confirmed the figures he's reported.

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