It was a dreary, rain-soaked day in 2014 when Katie Donegan’s husband, Alan, asked her a simple yet profound question: “What do you really want from life?”
At the time, Katie was 29 and hadn’t given much thought to her future beyond the usual day-to-day grind.
But that question set a new course for their lives — one that led to a journey of extreme saving, investing, and, ultimately, early retirement.
Discovering the Fire Movement: A New Philosophy on Life
The couple’s path to financial freedom began when Alan stumbled upon a community online that would change everything.
The Financial Independence, Retire Early (FIRE) movement had already gained traction in the U.S., and after Alan immersed himself in the teachings of the group, he became determined to follow their advice.
“Why would you not want to stop working early?” he thought.
This idea resonated deeply with both of them.
FIRE is based on the concept of saving and investing aggressively in your youth so that you can retire long before the traditional retirement age.
Inspired, Katie and Alan set a new goal: retire as soon as possible.
It wasn’t an easy decision, but it would eventually lead them to retire by age 35 and 40, respectively.
The Formula for Success: Save, Invest, Repeat
Alan, now 47, explains that the couple adopted a simple yet powerful formula for their financial journey: save 25 times your annual expenses.
In essence, this means calculating how much you spend in a year, then multiplying that by 25 to determine how much you need to save in order to retire.
The idea is that if you can keep your savings invested wisely, your money will grow over time.
The couple focused on tax-efficient investment vehicles like ISAs, pensions, and Lifetime ISAs to maximize their returns.
“If you are flexible with your spending, and if you’re willing to reduce expenses in years when the stock market drops or take on extra work, you could save even less,” Alan says.
Initially, their goal was a modest £650,000 in total savings, based on a £34,000 annual budget.
Turning £100 into £1 Million: The Power of Consistent Investing
Katie and Alan’s first step in this journey was small but impactful: they began investing just £100 a month.
Over time, they ramped up their savings rate by reducing their living costs and increasing their income.
By 2015, their “freedom fund” had grown to £291,233.
They continued to live frugally, investing most of their earnings in low-cost global tracker funds, which follow the performance of global markets.
By December 2018, their fund had ballooned to £898,002.
By April 2019, they hit their £1 million goal and left their jobs behind.
Today, their fund sits at an impressive £2,453,612, despite not working for a living.
Even though their free money management course, Rebel Finance School, operates at a loss, the couple continues to pour their money into global stock markets.
Living Frugally: The Real Secret to Financial Freedom
For Katie and Alan, reaching financial independence wasn’t about giving up everything.
It was about being intentional with their spending.
While living in Basingstoke, they focused on saving aggressively and living modestly — even driving a modest Skoda Citigo. “We weren’t ‘giving things up,’” Alan says.
“We were trading short-term comforts for long-term freedom.”
This mindset allowed them to save an incredible 81% of their income during their peak saving years.
They lived on just £34,000 a year, which made their target of £650,000 achievable.
Later, when their savings grew, they increased their spending to match their new, more flexible lifestyle.
Today, while living in Colombia and traveling, they’re spending about £100,000 annually, though they continue to invest as much as possible.
Mistakes Along the Way: Lessons Learned the Hard Way
Despite their success, Katie and Alan aren’t afraid to admit that they made some mistakes along the way.
One of the biggest mistakes was their investment in property.
They purchased two buy-to-let flats in Basingstoke, hoping for profit from both rent and rising house prices. However, the returns were disappointing.
“Property can work, but it’s not as liquid as people think,” Katie says.
They eventually sold the flats and moved their money into stocks, where they saw much better returns.
Another mistake was investing in Premium Bonds.
“We found our money was being eroded by inflation,” Katie admits.
“Having too much cash isn’t wise, especially when inflation is eating away at it.”
Embracing Volatility and the Power of Compound Growth
One of the biggest lessons they learned was the importance of patience.
Alan recalls that at first, their investments felt like they were growing at a snail’s pace.
But over time, they began to see the power of compound growth, which eventually made their portfolio move more in a single day than it used to in an entire month.
Katie explains that, even though the couple’s portfolio has been impacted by market volatility, including downturns caused by events like the Covid pandemic and Trump’s tariffs, they’ve remained steadfast in their investment strategy.
“We learned that volatility is the price of admission,” she says.
This unwavering belief in long-term investing has been the key to their success.
The Big Takeaway: Doing Something Extraordinary
As Katie and Alan reflect on their journey, they realize that their story is not about following the conventional path.
“If you want the same financial results as everyone else, do the same as everyone else,” Alan says.
“If you want extraordinary results, do something extraordinary.”
Their journey proves that with determination, a solid plan, and a willingness to embrace both risk and sacrifice, anyone can achieve financial freedom — even well before the age most people expect to retire.
Today, they continue to inspire others through their Rebel Finance School, a free course dedicated to teaching others how to manage their money and take control of their financial futures.
For Katie and Alan, it’s not just about the money — it’s about empowering others to live the life they truly want, on their own terms.F
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