How This Pair Increased Their Liquid Net Worth to $2.3 Million and Developed Their Own FIRE Strategy

The Power of Liquid Assets: Unlocking Financial Flexibility

Having a substantial amount of liquid assets provides something invaluable: the freedom to make choices.

Main Points to Remember

• Assets that are easily accessible—like cash, stocks, and brokerage accounts—offer a level of adaptability that other asset types cannot provide.
• Increasing your earnings is more impactful than extreme frugality, as long as you avoid letting your spending rise with your income.
• Remaining invested during market downturns helps avoid costly timing errors, which can reduce average investor returns by over 1% annually.

A couple in their mid-30s recently shared their financial journey online: they currently hold $2.3 million in liquid assets and aim to reach $4 million before turning 42. Together, they earn about $550,000 each year.

According to Gary Clement, PhD, CFP, and head of financial planning education at The College for Financial Planning, “Once someone achieves multi-millionaire status, their mindset around money shifts from worry and constant optimization to a sense of assurance and resilience. There’s a strong feeling of security that comes from knowing you can handle almost any situation without financial strain.”

Their goal is to amass $4 million in liquid assets within seven years.

Here’s how they achieved their current financial standing.

Understanding Liquidity and Its Importance

Liquid net worth refers to cash and investments that can be quickly converted to cash, such as checking and brokerage accounts. The Federal Reserve defines liquid assets as those that can be used to meet obligations swiftly, without needing to sell property or incur early withdrawal penalties. This excludes your home, retirement accounts like a 401(k) that can’t be accessed penalty-free, or vehicles.

Why Liquidity Is Crucial

For those aiming for early retirement, liquidity is essential. With $2.3 million in readily available funds, this couple can adapt to changes, withstand market downturns, or leave their jobs without financial panic.

To put this in perspective, the median net worth for U.S. households in 2022 was $192,900—a figure that includes home equity. This couple’s liquid assets are more than ten times that amount.

How They Reached Their Financial Milestone

Both partners work in finance and fintech, earning a combined annual income of about $550,000.

Their investment strategy centers on dollar-cost averaging, which involves investing equal amounts at regular intervals regardless of market conditions. This approach means buying more shares when prices are low and fewer when prices are high, helping to average out the cost per share over time.

Maintaining investments through market fluctuations is key, though many investors struggle with this. According to Dalbar’s 2025 report, the average equity investor earned 9.24% last year, while the S&P 500 returned 10.35%. This gap represents lost potential gains. The couple avoided this pitfall by consistently investing, even during downturns.

The Road to Early Retirement

Gary Clement offers this advice for those seeking to build wealth early: “Remove anything that makes accumulating wealth feel like an uphill battle. High fixed expenses—such as large homes, car payments, and lifestyle inflation—can slow your progress and make early retirement much harder than it needs to be.”

This couple managed to keep their spending steady even as their income increased. Clement highlights this as a key trait among successful early retirees: “disciplined patience—the ability to delay gratification repeatedly over long periods.”

Their target is $4 million by their early 40s, which, following the 4% rule, would provide about $160,000 per year. However, since the 4% rule was designed for retirements lasting up to 30 years, those retiring earlier may need their savings to last 50 years or more. Many financial experts now suggest a more conservative withdrawal rate of 3.5% for longer retirements, which would yield approximately $140,000 annually.

Conclusion

This couple made smart financial decisions: they earned a high income, controlled their spending, and remained invested regardless of market conditions. As a result, they now have the flexibility to consider early retirement, reduce their work hours, or even pursue “quiet quitting.” With $2.3 million in liquid assets, they enjoy both stability and freedom—now and in the future.