"Retire By 30" author Cody Berman and his wife, Lauren.
Courtesy of Cody Berman
Cody Berman's income more than quadrupled in three years, while his spending barely changed in that same timeframe.That widening gap, he said, was the key to reaching financial independence before his 26th birthday.Berman, the author of "Retire by 30" and host of "The Financial Independence Show," said people pursuing FIRE (financial independence, retire early) often obsess over tax optimization, investment nuances, and advanced strategies. But his own path was much simpler: He pulled two levers at once, growing his income while keeping his expenses low, then invested the difference.Lever 1: He kept expenses lowBerman, 30, started keeping his expenses low immediately after college, when he moved back home for seven months to save on housing while working his first corporate job in Boston. When he moved out, he still kept his largest expense as low as possible by living with roommates and splitting a room. His portion of the rent was $450 a month.Eventually, he bought a multi-family home and house-hacked, which turned housing from an expense to a source of cash flow. He went from paying $450 a month in rent to netting about $500 a month by renting a portion of his home — roughly a $1,000 monthly swing, he said.Between the low housing costs and driving a paid-off truck, Berman said he lived comfortably on about $2,000 a month from 2019 to 2021. He still went out with friends, ate at restaurants, and spent money on things he valued. The difference was that he made intentional choices that compounded: splitting dishes, buying fewer drinks, keeping housing costs low, and avoiding car payments.
