Can you briefly introduce yourself and share your journey towards financial freedom?

My name is Matt Viera. I am 51 and will turn 52 in February 2024 (my age is an essential factor in my journey). I am a US Army veteran turned NYC attorney turned educator working for the City of New York.

My journey towards financial freedom began relatively recently. 

To understand why it's only started recently, I have to mention that I was saddled with over $220,000 in student loan debt when I graduated from law school in 2008. 

I was paying about ~$1,100 per month just in student loans. 

I was paying more per month in student loans than some (most?) people spend on their mortgages. 

I didn't believe there was a way out for me unless I worked until all my student loans were paid off.

But, things slowly changed for me for the better.

In 2022, a few financial actions I took throughout the past decade started to unexpectedly come together for me positively. 

This culmination of fortuitous events helped me believe that not only can I achieve financial freedom, but I can achieve financial freedom in only a few years. 

My goal is to retire in 2028. 

What motivated you to pursue financial freedom?

The biggest motivation for me to pursue financial freedom was the belief that not only could I achieve financial freedom, but I could achieve it in a relatively short amount of time.

What were some of the key milestones or turning points in your journey? Or worded differently, what was the trigger or aha moment that set you on your journey?

There were a few "aha" moments that happened all at roughly the same time. 

In 2022, I was on my third mini-retirement in Spain. It was a 5-week trip in Spain, 4 of which were spent in Barcelona. I was having a great time doing what I wanted, whenever I wanted, and most importantly, waking up every morning for 5 weeks without an alarm clock.

One day during this trip, I asked myself, "What do I have to do to live the rest of my life like this?" 

Then, unexpectedly, I was notified that my federal student loans were forgiven. 

About $153,000 in student loan debt disappeared (I'll get to how that all came about).

Needless to say, I felt like I won the lottery. 

At that point, something clicked, and I promised myself, "I'm going to retire in 5 years."

How did you get started on your path to financial freedom?

I didn't even realize I was walking along the path to financial freedom when I started. 

When I started working for NYC, several of my colleagues were veterans. 

One day, one of my colleagues asked me if I started contributing to our employer's retirement plan. 

Being brand new (without a new employee orientation), I was unaware that a retirement plan was even offered. 

I told my colleague as such, and he made me promise I would start as soon as I got home from work. 

He showed me what I needed to do. 

When I arrived home, I set up the automated contribution of 2% of my pre-tax income into this retirement account (which has a 7% fixed rate of return guaranteed by the New York State legislature). 

As my salary increased through the years, the amount of pre-tax income I contributed to this account increased. 

I currently contribute 22% (almost a quarter) of my salaried income into this account, making up most of my current net worth.

What were some of the challenges you faced along the way, and how did you overcome them?

Most of the challenges I faced along the way dealt with debt (student loans and credit card debt) and spending money.

Concerning student loans, the first thing I did (about 12 years ago) was apply for the Public Service Loan Forgiveness program. 

The PSLF program is a federal program that will forgive anyone's federal student loan if they work for a federal, state, or city government agency and make 120 loan payments on time. 

All I had to do was make on-time payments to my federal student loan for 10 years and my entire federal student loan would be forgiven (which ultimately happened in 2022).

Once that was set, I focused on paying off one of my private student loans. 

I focused on the loan with the smallest balance. I made extra payments on this student loan until it was completely paid off. Once that loan was paid off, I had an extra ~$200 I could use to handle credit card debt.

I currently have one private student loan left to pay off. 

I refinanced this loan from a variable interest rate to a lower fixed interest rate and plan to pay this loan off before 2028.

Concerning credit card debt, when you live in a high-cost-of-living area (such as NYC), and there are so many fun things to do (i.e., go out to eat, happy hours with friends), paying ~$1,100 in student loan debt per month doesn't leave much disposable income. 

I used credit cards. The good thing was I earned reward points I can use for traveling. The bad thing is I didn’t pay each card’s balance in full every month. 

Nothing is more frustrating than knowing the money you're using to pay off credit card debt can be used for something more meaningful, like traveling to one of your dream destinations.

So, I decided to attack all my credit card debt.

I started with the lowest credit card balance and continued until my credit cards were paid off.

I still use credit cards for everyday purchases to earn reward points for traveling (I haven't paid for airfare using cash since 2017). 

But I pay off the balance every month.

In addition to the outstanding private student loan, the only other debt I have is my car loan, which I plan on paying off before the end of this year.

Finally, in order to curb spending money, I started to track my daily spending in 2021.

A habit I keep to this day.

Can you share any specific strategies or actions you took that had a significant impact on your progress?

The biggest financial game changer has been contributing pre-tax income into my retirement account (which is well over 6 figures, earning 7%) for the past 12+ years.

The strategy I used to pay off credit card debt (which I didn't even know was a named method when I used it) was the Debt Snowball method: attack credit card debt with the lowest balance until it's paid off, then move on to the next.

In 2016, I opened an investment account investing in ETFs. This account is currently up over 18%. In 2022, I opened a different brokerage account to invest in other ETFs and specific dividend stocks, which is also doing relatively well. Finally, last year, I opened a Roth IRA.

I automate contributions into each of these accounts. The contributions to my retirement account come out automatically from each paycheck. I contribute $100 per week to the investment and Roth accounts.

I also want to note that I have two high-yield savings accounts: one for my emergency fund and one for my "mini-retirement" fund. 

Any additional income I earn via overtime work and my side hustle is split 60/40 between these accounts.

And finally, in 2021, I started to track my spending. I've tracked every dollar I've spent since January 1, 2021. This one habit has been a financial eye-opener for me.

What mindset or mindset shifts were instrumental in your journey towards financial freedom?

I won't say I went from a "scarcity mindset" to an "abundance mindset."

The two most significant mindset shifts for me came when 1) I turned 50 years old and 2) I realized I could actually retire from my career when I hit 20 years of service.

When I hit 50, I realized I had more life behind me than I do ahead of me. 

I don't want to trade for time for money anymore.

Concerning retirement, I work an old-fashioned career that offers an old-fashioned pension. 

I am eligible to retire with a pension when I hit two milestones: 20 years of total service credit and I am at least 55 years old.

I am in year 13 of my career and plan to retire in 2028.

If you do the math, you'll realize I'll only be in year 17 in 2028.

So, how can I retire?

A few years ago, I took out a loan against my pension to "buy back" 3 years of my military service. It was a low-interest loan, and the payments were automatically deducted from every paycheck (I've since paid off this loan). 

The beauty of buying back this time is that in the eyes of my employer, I am actually in year 16 of my career (for retirement purposes). 

In 2028, I will hit 20 years of total service credit and I’ll be 56. 

I will retire with an income for the rest of my natural life.

My retirement, investments, and Roth accounts are entirely separate from and will supplement my pension. 

How do you stay motivated and disciplined in your pursuit of financial independence?

There are two specific actions I take to stay motivated and disciplined:

First, I recalculate my net worth every month.

Second, I have my financial goals written on a small index card that I carry with me and review daily (I currently have the index card in front of me).

Are there any specific beliefs or attitudes that you think are key to achieving financial freedom?

This is all I can say: a day in your career will come when you realize you've had it. 

You will have a day so bad at work that you'll want to walk into your boss's office, say, "I quit," and walk out without looking back.

I don't care how much you love your career; that day will come. And it will arrive when you least expect it. I hope this day never comes for you.

Alternatively, unless you have it from your employer in writing that says otherwise, you are generally an "employee at-will." 

An "employee at-will" can be terminated for any reason or no reason at all.

Be prepared financially for one of these days. 

What advice would you give to people who are a step behind on their journey towards financial freedom?

If you're on a journey towards financial freedom, you are ahead of 99% of most people.

However, whatever you're doing, you can do more.

My next step is figuring out how to save/invest ~50% of my income (up from about ~30%).

Looking back, what do you wish you had known when you were starting out?

I wish I learned the fundamentals of financial literacy in my early 20s.

If I had known then what I understand now, I’m confident I would’ve reached financial freedom in my early 40s (or earlier).

What actionable steps can people take right now to move closer to financial freedom?

1. Figure out your current net worth
2. Come up with at least 3 SMART financial goals
3. Review your financial goals daily
4. Start tracking your daily spending
5. Use and stick to a budget
6. Get rid of credit card debt as soon as possible
7. Have fun

You have to have fun. You have to do something big at least once per year.

Three things I do to have fun:

• Weekend getaways
• A solo cross-country road trip every year to Wyoming
• Spend a month during the summer in a European city 

These are non-negotiables for me.

My suggestion: spend a month in one of your dream destinations.

Don't consider any of these as "spending money on vacation."

Consider all of these as "an investment in a life experience."

An investment in a life experience is one of the best investments you can make.

Remember: life's entirely too short.