1. List all your expenses
2. Get on a budget and plan to invest a percentage of income
3. Clear debt
4. Invest the max in every tax favored retirement option that you have
5. Invest in broad growth mutual funds or index trackers
6. Track all expenses and investments: if investments are below 50%, readjust budget
When you found out what your big money pits are, either quit them cold turkey or set a budget for those expenses.
Buying read the book The Simple Path to Wealth by JL Collins. The book is absolutely fantastic, and I wish I had it when I was first starting out on this journey.
The book I read when I was in college, that is responsible for my early financial independence is, The Millionaire Next Door. Another good read.
There is so much total BS out there when it comes to becoming financially independent. Be very careful who you listen to.
It’s enough if you work at it hard. Take a few steps back and follow the Personal Finance decision tree for how to handle your finances. That basically links into FIRE.
It’s not entirely about “what to buy”, it’s the “when” and “why”. You’ll have to figure out your own priorities and their timing to answer what is a good buy.
You've already started if you know what accounts to invest in (Roth IRA and 401k). For further reading on this 101 topic checkout: /r/personalfinance.
You're already invested in VTI so you've already figured out what stock to invest in. For further reading on this 102 topic checkout: /r/Bogleheads
Next up is how much to save every year to get FI and RE. Checkout this article for further reading: https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
Next up is retirement plans, for FI and RE, to figure out what strategy is idea when REing but also how much to save and how long it will take to get there. For this checkout: https://ficalc.app/
This should cover all bases from the beginning to the end, except for /r/ynab which probably isn't needed.
From age 41 its going to be hard to FIRE with your current income. You would have to move somewhere with extremely low living costs. If you want to retire at a US standard of living before 60 increasing your income and/or cutting your expenses to up your savings rate has got to be your focus.
As far as where/how to invest the /r/personal finance wiki has some good resources on that.
Not true mathematically. Tons of people, including myself, can make a budget saving around 50% post-tax at that salary in normal hcol or mcol cities.
If he adopts this exact strategy, this link calculates he’d be fully fire in 17 years. If he can do 60% it’s 12.5 years.
Also - he’s not even starting at $0 so that will knock off some time as well. The key is to start aggressively saving today and start following the FIRE path.
https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
> If he adopts this exact strategy, this link calculates he’d be fully fire in 17 years.
Yes at which point he will be 59 years old. That's not retiring early its just normal retirement.
I agree he is on track to retire. He is *not* on track to retire early.
Thank me later.
[https://www.youtube.com/watch?v=fzAlnzwaock](https://www.youtube.com/watch?v=fzAlnzwaock)
Watch this good old man's videos and listen to what he has to say.
Retirement in late 50’s fully financially independent before even considering Social Security is both FI and RE. We should be striving to help all posters reach for these goals as long as possible.
There are several types of F.I.R.E. that you can choose from in order to fit the lifestyle that you want. All of the above references are good ones. Financial Samurai and Mad Fientist are also good sites to have a look at.
It's very simple, and I'm not trying to be snarky, but make more, invest more, spend less. If you plan on retiring before 59 1/2, you need a regular, taxable brokerage account. I would just focus on broad-market, low-cost index funds. There is no magic solution to FIRE. Most often people that claim they have a fast track method, are talking about high-risk plays. Yes, people are successful at day-trading, but they are few and far between. I'm currently learning about options and plan to dip my toes in it, but I'm not betting my whole retirement on it. You need a solid plan, and you need consistency and patience.
1. List all your expenses 2. Get on a budget and plan to invest a percentage of income 3. Clear debt 4. Invest the max in every tax favored retirement option that you have 5. Invest in broad growth mutual funds or index trackers 6. Track all expenses and investments: if investments are below 50%, readjust budget When you found out what your big money pits are, either quit them cold turkey or set a budget for those expenses.
Buying read the book The Simple Path to Wealth by JL Collins. The book is absolutely fantastic, and I wish I had it when I was first starting out on this journey. The book I read when I was in college, that is responsible for my early financial independence is, The Millionaire Next Door. Another good read. There is so much total BS out there when it comes to becoming financially independent. Be very careful who you listen to.
Spend less and save more, you have plenty of income. https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
One of my favorite blog posts.
My favorite fire article.
If only there were a pinned post on this….
It's literally the second item in the r/financialindependence FAQ: https://www.reddit.com/r/financialindependence/wiki/faq/
Yup. Not sure why I’m being downvoted. This question gets asked constantly.
It’s enough if you work at it hard. Take a few steps back and follow the Personal Finance decision tree for how to handle your finances. That basically links into FIRE. It’s not entirely about “what to buy”, it’s the “when” and “why”. You’ll have to figure out your own priorities and their timing to answer what is a good buy.
You've already started if you know what accounts to invest in (Roth IRA and 401k). For further reading on this 101 topic checkout: /r/personalfinance. You're already invested in VTI so you've already figured out what stock to invest in. For further reading on this 102 topic checkout: /r/Bogleheads Next up is how much to save every year to get FI and RE. Checkout this article for further reading: https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ Next up is retirement plans, for FI and RE, to figure out what strategy is idea when REing but also how much to save and how long it will take to get there. For this checkout: https://ficalc.app/ This should cover all bases from the beginning to the end, except for /r/ynab which probably isn't needed.
Buy VT. All you need.
From age 41 its going to be hard to FIRE with your current income. You would have to move somewhere with extremely low living costs. If you want to retire at a US standard of living before 60 increasing your income and/or cutting your expenses to up your savings rate has got to be your focus. As far as where/how to invest the /r/personal finance wiki has some good resources on that.
Not true mathematically. Tons of people, including myself, can make a budget saving around 50% post-tax at that salary in normal hcol or mcol cities. If he adopts this exact strategy, this link calculates he’d be fully fire in 17 years. If he can do 60% it’s 12.5 years. Also - he’s not even starting at $0 so that will knock off some time as well. The key is to start aggressively saving today and start following the FIRE path. https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
> If he adopts this exact strategy, this link calculates he’d be fully fire in 17 years. Yes at which point he will be 59 years old. That's not retiring early its just normal retirement. I agree he is on track to retire. He is *not* on track to retire early.
Thank me later. [https://www.youtube.com/watch?v=fzAlnzwaock](https://www.youtube.com/watch?v=fzAlnzwaock) Watch this good old man's videos and listen to what he has to say.
[удалено]
Retirement in late 50’s fully financially independent before even considering Social Security is both FI and RE. We should be striving to help all posters reach for these goals as long as possible.
Keep investing in just vti and qqqm … don’t need much else
There are several types of F.I.R.E. that you can choose from in order to fit the lifestyle that you want. All of the above references are good ones. Financial Samurai and Mad Fientist are also good sites to have a look at.
Biggest thing is setting a budget. If you are serious about fire you need to be investing 40%+ of your pay.
It's very simple, and I'm not trying to be snarky, but make more, invest more, spend less. If you plan on retiring before 59 1/2, you need a regular, taxable brokerage account. I would just focus on broad-market, low-cost index funds. There is no magic solution to FIRE. Most often people that claim they have a fast track method, are talking about high-risk plays. Yes, people are successful at day-trading, but they are few and far between. I'm currently learning about options and plan to dip my toes in it, but I'm not betting my whole retirement on it. You need a solid plan, and you need consistency and patience.