Mike Tyson once said “everyone has a plan till they get punched in the face.” The opposite was true for me. It took a solid punch to the face for me to wake up and realize that I needed a plan. This is the story of how my 14 months of extended unemployment led me down a path to financial independence and early retirement.
ELIMINATE AND AVOID DEBT
One of the most important things you can do in your journey to reach financial independence is to eliminate and avoid debt.
If you're like nearly every other American (and Canadian), then you're in debt - and that means that a portion of every single dollar you earn belongs to someone else. The more debt you have, the more your money belongs to someone else.
So you go to work to earn money to pay back your debts - it's a vicious cycle and you end up getting worked to death.
Forget that! Pick a debt elimination strategy, even if it's a different kind of plan, and eliminate your debt ASAP.
Once you've eliminated your debt you should avoid debt like the plague. Debt is the great killer of wealth. Think for just one second how great life would be if you could just keep the money you make?!
Cash would start to pile up faster than you realize! In fact, when you get to keep the money you make it's possible to thrive on a single income (even if you're in an expensive city).
In your quest to reach FIRE it is vital that you eliminate and avoid debt! So click through some of the posts and articles below to find more useful information that can help you eliminate and avoid debt!
Learning how to save 50% of your income is a great way to set yourself up for financial independence. Maximizing savings is something anyone can do, regardless of income.
Who doesn’t want to get rich quick then ride off into the sunset to live the life of their dreams? I do – that would be awesome! And based on the Google search results that drive people to this website, I’m not alone either. Here’s the good news/bad news reality: it is possible to get rich quick. But you shouldn’t spend much time or money trying.
Budgeting for debt means you methodically eliminate your debts by planning for it.
Budgeting is often given a wrong meaning. Many people view it as something that puts a stop to every fun thing in life. They mistakenly think that a budget restricts you from eating out or shopping. In short, you’re devoid of any enjoyment if you follow a budget.
However, it’s not like that. At all.
Actually, budgeting helps you to spend money on the things you want. It helps you to take control on your finances and get your financial life on track.
People are funny creatures. We quickly become accustomed to new luxuries and then we can’t seem to live without that thing we’ve lived our entire lives without.
Cell phones are a good example. Just a few short years ago cell phones were expensive nice-to-haves. Today they are must have items that people have become addicted to and can’t seem to function without.