34-year-old aims to save $12,000 a month and retire by 45

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.

“I just make sure I invest as much as I can and then live off of the remainder,” Morgan says.

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.

Derrick Morgan Jr. at home.

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“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.

Lately, Morgan has been putting money into a boutique hotel development project in Mexico. In March 2025, he contributed $14,500 — 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.

“I invest in real estate because I don’t want all my wealth tied to the stock market,” he says.

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 — roughly half what a similar place would cost in Chicago, he says: “It is affordable, but it’s not cheap.”

Here’s what he spent in March 2025:

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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

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.

He pays out of pocket for health care and carries $42,000 in student loan debt, which he is actively repaying.

Derrick Morgan Jr. near the entrance of his Mexico City apartment.

Patricio Martinez | CNBC Make It

Morgan says his drive for financial independence comes from growing up with limited means.

“I grew up very lower middle class, so we just didn’t have a whole lot,” he says. “Money was very tight — we couldn’t afford this, we couldn’t afford that. So it’s kind of like a freedom thing, for sure.”

He doesn’t plan to stop working entirely — 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.”