Financial independence and early retirement might seem like an impossible goal, but it’s not an all or nothing deal. Along the way there are six layers of financial independence, each one giving you a bigger and better taste of that freedom that you’re after. These are the steps to reach financial independence.
Anyone that has ever dreaded going into work has dreamt about retiring early. It's safe to assume that nearly everyone has fantasized about taking their job and shoving it.
Take This Job and Shove It
While that sounds great, an early retirement isn't a good idea unless you've taken the time to set yourself up for success.
What you'll find here are articles, podcasts, videos and other kids of content that will help you create a strategy to retire early. Regardless of where you're at on your financial journey, we've got you covered. Browse around for amazing content that will help you create a rock solid plan to retire early.
Early Retirement Plan
Any successful retiree needs one thing: a financial portfolio that will last longer than you. Take a look around this site for content that will help you build a portfolio that will allow you to reach financial independence and retire early.
The FIRE Movement
What is FIRE and how does it work? In the world of personal finance, FIRE stands for Financial Independence Retired Early, or some variation thereof and there is a growing movement behind this concept.
Within the FIRE Movement, one is considered to be FIRE, or FIRE’d, when their living expenses can be covered by their investment returns. At that point, you are financially independent (FI) and can retire early if you so choose (RE) because work is optional for you.
But FIRE is so much more than budgeting, investments, or a math equation. FIRE is a way of life and a growing movement that is spreading across the globe and being embraced; not because people suddenly love budgeting and personal finance but because FIRE provides hope.
For anyone that’s ever felt trapped by the thought of a working career that could last into their late 60’s or early 70’s, FIRE provides a feasible alternative to the traditional path that society peddles. And once embraced, the idea of reaching financial independence and retiring early is nearly impossible to snuff out. That’s because, at its core, FIRE is reclamation of one’s personal freedom.
And people long to be free.
The Law of the Harvest has biblical implications, but for the non-religious among us there are some parallels we can draw that will also help us set and achieve our financial goals. In my quick’ish style, allow me to do just that.
If you’re fixin to boil a frog, one popular technique warns against dropping the critter into a pot of boiling water. Not surprisingly, a frog will immediately hop out of a pot of boiling water. #shocking
Getting your personal finances in order isn’t complicated. That’s not to say it’s easy, but for most people it’s not hard.*
- Spend less money than you make
- Invest that difference
- Eliminate/avoid debt
Make a habit of these things and your finances will be on autopilot. Run on autopilot long enough and you’ll cruise through the six layers of FIRE. It just takes a bit of time, and this is where it gets hard. For me the most difficult part of personal finances is the waiting game.