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.
Save Your Money
Save Your Money
Arguably the foundation of all things personal finance is this very simple idea: save your money.
Nothing else is possible if you aren't able to do this one thing. If you can't save your money then you'll have no money to invest or to pay down debt.
The Foundation of FIRE
So if this idea is the foundation FIRE and it's simple to understand, then why is it so difficult for so many to save your money?
Most people are unable to save because of two reasons:
- They don't make enough money
- They spend too much of the money they make
How You Can Save Your Money
Thankfully the solutions to both of these problems are also quite simple. If you don't earn enough money to save, then you need to find a way to make more money.
If you are spending so much of your money that there isn't enough left for you to save, then you need to cut back your spending and possibly deflate your lifestyle.
Easier Said Than Done
The answers are simple, but actually following through is much more complex. We get that and somewhere on this website is an article that most likely addresses the complex issues that you're facing.
Browse around this site and find that article the get started strengthening your financial foundation.
The archetypal dad’s advice will sound familiar: new cars are for suckers. Depreciation means you’ll lose all the value the minute you drive out of the lot, so used is the only way to go. Or is it? We think it isn’t that simple.
While it’s true that new cars will undoubtedly lose a good chunk of value, it doesn’t mean a pre-owned car is an answer for absolutely everyone. And we’re going to tell you exactly why.
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.
Today I reached another milestone in my quest to reach financial independence and retire early. Step number 3 in my Get Rich Quick’ish strategy is ‘Take Advantage of Free Money.‘ As of this moment I’m officially all-in on my employer’s ESPP program.
It has taken a while to get to this point (two years to be exact), but it means that between my Employee Stock Purchase Program and my 401(k) match, I’m finally grabbing 100% of the free money that my employer offers.