What began as a solo side hustle is now a nearly $500,000-a-year business that Morgan runs with help from a paralegal and an AI assistant. But he isn’t taking the company’s success for granted, which is why he puts roughly 40% of his $350,000 income into investments to achieve his goal of early retirement.<\/p>\n
“I don’t know how long my business is going to thrive,” he says. “So I make sure I pay myself first \u2014 I front-load my investments.”<\/p>\n
A budget built for early retirement<\/p>\n Morgan says his approach to money has been shaped by “The Richest Man in Babylon” by George Samuel Clason, a bestselling personal finance book that emphasizes saving before spending. One lesson that’s stuck: pay yourself first.<\/p>\n “I just make sure I invest as much as I can and then live off of the remainder,” Morgan says.<\/p>\n That philosophy guides his monthly budget, most of which is put into investments that include a solo 401(k), backdoor Roth IRA, health savings account and taxable brokerage account. He also earns $440 a month in rental income from a condo he owns in Chicago.<\/p>\n Derrick Morgan Jr. at home.<\/p>\n Patricio Martinez | CNBC Make It<\/p>\n “I do put a lot into my brokerage account after I max out the retirement accounts because I want to be able to pull from that earlier” than traditional retirement age, he says. Retirement savings vehicles generally have restrictions on when you can access the money.<\/p>\n Lately, Morgan has been putting money into a boutique hotel development project in Mexico. In March 2025, he contributed $14,500 \u2014 his largest monthly expense. He expects to finish making payments within a few months and plans to catch up on retirement contributions later in the year.<\/p>\n “I invest in real estate because I don’t want all my wealth tied to the stock market,” he says.<\/p>\n Morgan travels often and dines out regularly, but he’s still intentional about keeping his overall spending low. His home is a furnished apartment in Mexico City that costs about $2,000 a month \u2014 roughly half what a similar place would cost in Chicago, he says: “It is affordable, but it’s not cheap.”<\/p>\n Here’s what he spent in March 2025:<\/p>\n Zoom In IconArrows pointing outwards<\/p>\n Christina Locopo | CNBC Make It<\/p>\n Real estate investment: $14,500Housing and utilities: $2,032 for a furnished rental in Mexico City, including Wi-FiFood: $1,085 for a mix of groceries and dining outStudent loan repayment: $1,000Discretionary: $557 for household items, pet boarding and a visit to the barberTransportation: $173 for Uber rides and bike rentalsLife insurance: $44Subscriptions and memberships: $29 for Netflix, Spotify and Apple<\/p>\n Morgan doesn’t own a car, relying instead on public transportation, rental bikes and rideshare apps. Some business expenses, like his phone, are covered through his company.<\/p>\n He pays out of pocket for health care and carries $42,000 in student loan debt, which he is actively repaying.<\/p>\n Derrick Morgan Jr. near the entrance of his Mexico City apartment.<\/p>\n Patricio Martinez | CNBC Make It<\/p>\n Morgan says his drive for financial independence comes from growing up with limited means.<\/p>\n “I grew up very lower middle class, so we just didn’t have a whole lot,” he says. “Money was very tight \u2014 we couldn’t afford this, we couldn’t afford that. So it’s kind of like a freedom thing, for sure.”<\/p>\n He doesn’t plan to stop working entirely \u2014 just to have options. “When I do quote-unquote retire, it’s more so I can focus on just living freely, but also doing more of those passion projects instead of working to necessarily make money.”<\/p>\n Want to stand out, grow your network, and get more job opportunities?\u00a0Sign up for Smarter by CNBC Make It’s new online course,\u00a0How to Build a Standout Personal Brand: Online, In Person, and At Work<\/a>. Learn from three expert instructors how to showcase your skills, build a stellar reputation, and create a digital presence that AI can’t replicate. Sign up today with coupon code EARLYBIRD for an introductory discount of 30% off the regular course price of $67 (plus tax). Offer valid July 22, 2025, through September 2, 2025.<\/p>\n Plus, sign up for CNBC Make It’s newsletter<\/a> to get tips and tricks for success at work, with money and in life, and request to join our exclusive community on LinkedIn<\/a> to connect with experts and peers.<\/p>\n![\"I](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/07\/108134851-MM_Nathanael_Farrelly_thumb.jpg\")
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