A data scientist who retired at 36 shares 3 charts that helped him manage his money and get out of the corporate world early – DAVID RAUDALES

DAVID RAUDALES

Businessman, musician / former Full Stack Developer

DAVID RAUDALES UK

A data scientist who retired at 36 shares 3 charts that helped him manage his money and get out of the corporate world early

Goldstein created a series of spreadsheets to plan his financial independence.

Yaron Goldstein

Yaron Goldstein retired at 36, following a successful career as a data scientist.Goldstein’s financial strategy involved increasing investments in stocks.Three charts were instrumental in helping Goldstein manage his finances.

Yaron Goldstein retired at 36, around 10 years after he first started working. His career as a data scientist took him from consulting to tech giants such as Google and Meta.

Goldstein told Business Insider that he found two money strategies that worked for him.

First, he began investing in stocks as soon as he started earning.

Second, he began pausing before purchases and not increasing his spending as his income increased.

Nine months after he retired in May 2023, he shared three charts that help him manage his finances.

Goldstein updates his expenses every morning.Goldstein’s spending breakdown is divided in over 25 categories.

Yaron Goldstein

The chart above, which Goldstein checks every morning, shows his expenses for the first two months of 2024.

Goldstein divides his expenses into two broad categories: fixed and variable. He also has detailed sub-categories including food, family, entertainment, and guilty pleasures.

For each cost, he tracks details including his year-to-date spending, the percentage of his budget that it accounts for, and how much of his budget remains available.

The chart on the right shows a different visual breakdown of his expenses. The bigger the rectangle, the higher the expense. The expenses called “guilty pleasures” and “apartment” make up for big parts of his budget; “friends and social” and “education,” both of which are smaller boxes, account for less of it.

Goldstein said he’s closely tracking his spending on unhealthy foods because he is prioritizing fitness and working to lower his “stress eating” after retirement.

“My apartment rent is one of my largest cost categories, together with how much money I spend on food in general,” he told BI.

He also tracks his portfolio on a daily basis.Goldstein’s stock portfolio following retirement in May 2023.

Yaron Goldstein

The chart above tracks how Goldstein’s total net worth has changed since he retired in May. The Y-axis value, which has been concealed here at Goldstein’s request, tracks Goldstein’s net worth.

“It’s ok for it to go down as long as it goes up again,” Goldstein said. “I’m very lucky that it went up so much in the first months, because I originally retired with only ‘guaranteed’ $3,500 per month, but now I’m more safely in the $4,500-$5,000 range,” he said about his monthly budget.

His cost of living is roughly 60% of that amount. He said 20% of his monthly “salary” goes into travel, and gifts for family and friends. He keeps the remaining 20% invested in stocks.

As a single person living in Berlin, Goldstein feels comfortable living off 80% of his budget and keeping the rest invested. However, he said his priorities could change if he settles with a partner and has children.

Here’s how he breaks down his portfolio.Goldstein’s stock breakdown

Yaron Goldstein

Goldstein’s portfolio breakdown is another treemap chart with stock ticker names for various companies.

“My largest holding is Berkshire Hathaway, managed by Warren Buffett, followed by Google,” he said.

He built the tool in 2015 when he learned that Google Sheets allows users to get up-to-date information about stock prices directly. Since then, he said he has been using the sheet to track “daily snapshots” of his net worth over the years.

“It’s a little bit my baby that grew with me over the last 10 years,” he said.

Are you part of the FIRE community in Europe or Asia? If you’ve got a story to share, get in touch with this reporter: [email protected]

Read the original article on Business Insider