These outdated financial rules were created by previous generations, but no longer hold true in today’s world.If you’re interested in achieving financial independence and early retirement then you need to consider breaking these 5 outdated financial rules.
In the world of FIRE and early retirement is that "what" and financial independence is the "how." Simply stated: no FI, no ER.
Financial independence, or FI for short, is when you're investments generate enough cash to cover your expenses. That's the holy grail because it means that money is no longer an object. You're financially free!
Not Everyone Should Pursue Early Retirement
Not Everyone Should Pursue Early Retirement, but EVERYONE should absolutely strive to become financially independent.
When you're financially independent, you've got options. You can go to work or quit. Take a vacation or lie on the couch all day. What you do doesn't matter because you're financially free.
The Best Thing Money Can Buy
The best thing you can buy with your money isn't more stuff - it's freedom. When you no longer have to trade your time for a paycheck, then suddenly you can do whatever you want with your time. You're free! And that's what financial independence is all about.
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 unemployment led me down a path to financial independence and early retirement.
Have you heard that FIRE is only for the wealthy? Unfortunately that narrative seems to be gaining a bit of steam and that’s too bad, because it’s a load of crap.
Sure the wealthy will be able to achieve FIRE faster than everyone else, but the speed at which someone else achieves their financial goals has zero impact on what you’re trying to accomplish.
FIRE might be easier to reach for the well-to-do, but FIRE offers something for everyone, regardless of their income, and anyone that says otherwise doesn’t fully understand The FIRE Movement.
Just a few short years ago I began taking on more responsibility at work, which lead to me bringing home bigger paychecks and enjoying cushy employee perks. That extra income and those perks got us to a point where we *finally* had a bit of financial breathing room. We took full advantage and began to get our financial act together.
Life was awesome! But the financial progress we were making came to a grinding halt the day I lost my job.
This Contributor article was written by Just Start Investing.
Learning how to save 50% of your earnings is a great way to set yourself up for financial independence. Maximizing savings is something anyone can do, regardless of income.