Never too soon to save: Megan J. Stewart is committed to staying on the fast track to early retirement.

MEGAN J. STEWART IS UNLIKE MANY OF Instead, Stewart is trying to outfit her investment portfolio for an early retirement. "I can't fathom working 20 to 40 years at the same job like our parents did, especially if it's doing something I'm not passionate about." The 25-year-old professional hopes to scale back from the 9-to-5 grind in the next 10 years or so.

That determination drives Stewart to follow Declaration of Financial Empowerment principle No. 2: to save and invest 10% to 15% of my after-tax income. In fact, she's taken it a step further. Since landing a job 18 months ago, the University of Illinois at Urbana-Champaign graduate has socked away a little more than 30% of her salary each month. She's accumulated 515,000 in a savings account and participates in her profit sharing plan at work, where she typically contributes 10% of her salary.

Being a smart spender is what enables Stewart to save 30% or more of her monthly income. "I am a bargain shopper, a deals queen. It hurts my feelings to pay full price," she says. She's driven her '92 Buick Regal since high school. Though it has 110,000 miles, she nurses it and hopes to drive it another 12 to 18 months. When it comes to her love for travel, the first stop is Cheaptickets.com for airline tickets and Priceline.com for four-star hotels.

While she's careful about spending, Stewart has the luxury of living at home with morn and splitting the tab for expenses. Sure, she could afford to live alone on her 540,000 salary, but she prefers to squirrel away money. Besides, she and her morn get along great. "By keeping expenses low and saving a high percentage of income, it is very possible to amass a considerable amount of money," says Stewart.

She is currently house hunting, though, for an investment property. For Stewart, who is a licensed real estate agent, the housing market is familiar terrain. She's looking to purchase a fixer-upper--a single-family home or three-unit apartment building--that she can get at a good price and resell later at a profit. Her goal is to have a balanced portfolio of stocks, bonds, and real estate properties.

Though her salary isn't "a lot, it's what you do with what you make," says Stewart, who also volunteers as co-producer of Mo' Talks, a cable television talk show. Her fixed monthly expenses are around $600. Stewart escaped college relatively debt free since she had scholarships and 518-an-hour internships. She currently pays about 565 a month on her student loan debt--a total of 54,700. Her only other debt is a 5700 credit card balance.

Admittedly, it's not easy to be a disciplined twenty-something. "We are a generation that wants it all now. When we graduate we expect a good job, a big salary, a condo with a doorman and fitness center," says Stewart, who has several friends who are living from paycheck to paycheck. And worse, she adds, those that can't afford it try to make that lifestyle happen anyway. "They spend too much, too fast, and move back home. It's all a waste. That's definitely not going to be my path."

Of course, total denial doesn't work. "If you restrict yourself too much, you'll splurge," says Stewart, who allows for an occasional indulgence such as treating herself to a day at the spa. "It's about moderation," she adds. While some may think she's living a constrained life, Stewart's betting that she'll have the last laugh. For her, wealth isn't necessarily untold riches but the freedom to spend her days as she pleases, whether that's volunteering, traveling, mentoring, or spending quality time with family and friends.

Following her entrepreneurial spirit, Stewart is in the process of researching business opportunities. "If I could have $200,000 to $300,000 saved up and passive income like rent from property, an entrepreneurial endeavor that gives off money, plus stocks and bonds working for me, then I won't have to be in the office eight hours every day," she explains. One source of motivation is the entrepreneurs and other successful African American professionals she meets on her talk show. "They reinforce me. They remind me of where I'm going and why I'm doing what I do."

Declaration Of Financial Empowerment

From this day forward, I declare my vigilant and lifelong commitment to financial empowerment. I pledge the following:

1] To use homeownership to build wealth

2] To save and invest 10% to 15% of my after-tax income

3] To commit to a program of retirement planning and investing

4] To engage in sound budget, credit, and tax management practices

5] To measure my personal wealth by net worth, not income

6] To be proactive and knowledgeable about investing, money management, and consumer issues

7] To provide access to programs that will educate my children about business and finance

8] To support the creation and growth of profitable, competitive black-owned enterprises

9] To use a portion of my wealth to strengthen my community

10] To ensure that my wealth is passed on to future generations

PRINCIPLE 2

To save and invest 10% to 15% of my after-tax income

For young professionals, especially recent college graduates just entering the work force, Stewart offers the following advice:

* Create a plan. In other words, set goals and dare to dream. But don't stop there, Put your financial goals in writing and set target dates for achieving strategy n as much detail as possible. Clear, concrete step are easier to make.

* Stay the course. Discipline is not optional. It must be a way of life. There's no room for excuses. To avoid dilemma of living from paycheck to paycheck or having a negative cash flow each month, steer away from instant gratification. Giving in becomes a habit, one that could inevitably lead to your financial undoing. Learn to put your desires for material things on hold, especially if you can't afford to pay cash for them.

* Use Credit wisely. Avoid stacking up serious credit card debt. Once you start off on the wrong foot, it s very easy to get stuck there. Such habits will haunt you later. A low credit score will mean trouble when you're ready to buy a home ]he best thing to do is to have a single credit card, preferably one with no annual fee and the lowest APR you can find. Stewart is also big on paying bills on time and_ regularly checking her credit report for errors, which can wreck one s credit score. The way she sees it, the less money you give creditors, the more you can save to use for your own good.