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You’ve heard it once—
You’ve heard it a million times.
"Time is money, and money is time. What that means is that to take control of your time and your life, you need to reach financial independence."
If you are looking for the steps you need to take to reach ultimate financial independence and retire early—
Then look no further than this article. The FIRE movement has caught the attention of thousands by offering a path towards ultimate financial freedom and a way to live a full life!
Keep reading, we’ll be breaking down the basics today!
1. Track Your Spending and Create a Budget
The first step towards reaching financial independence is to start understanding where your money is going every month!
A few cups of coffee, dinners out, and birthday gifts might seem inconsequential might be purchases that you don’t even think about. Many people avoid tracking their spending because they might feel overwhelmed or guilty about their spending.
However—
When done correctly, the opposite is true!
Tracking your spending will allow you to get in control of your spending so that you can create a budget that works with your lifestyle! This empowers you to save, spend, and give how you want to.
Use money-tracking apps like Mint or Truebill to understand your spending and create a budget that works for you.
2. Live Below Your Means
When thinking about financial independence our minds immediately jump to increasing our income.
While this is a huge component to retiring early, many people forget that a great way to achieve financial freedom is to reduce your cost of living!
Start asking yourself what sacrifices you are willing to make to achieve your lifelong dream of retiring!
Are you okay with downsizing your living situation? Can you cut down on the number of dinners you’re eating out? Can you repair clothing and appliances instead of purchasing new?
Find out what works for you so that you can start saving—
This brings us to our next step!
3. Automate Your Savings
Once your budget is established, the best thing you can do for your financial independence is to automate your savings!
Determine how much money you will be putting towards savings every month and make this an automatic deposit in your bank account.
Think of it as putting money right in the pocket of your future self!
Pay yourself first, and then the leftover money in your account will be used for bills and other living expenses. This keeps your budget streamlined and effective.
Many people are hesitant to automate their savings, but it becomes easy when you think about how you want to live in retirement!
4. Find Ways to Increase Your Income
The best way to increase your savings for retirement? Increase your income!
There are several great ways to do this. Here are our tips:
Find a higher-paying job. Think long-term about a career you would be happy in and keep salary at the forefront of your mind here.
Plan ahead to negotiate a higher salary. If you are at a job you love, then start thinking about how you can negotiate for more pay! Take on more responsibility and track your impact so that when your yearly review comes around you are ready to show your worth to the company.
Start a side-hustle. A side hustle that earns you even a few extra hundred dollars a month is a huge asset! There are tons of side-hustles you can try such as being a delivery driver, writing, creating a youtube channel, affiliate marketing, and more. Find a side-hustle that is flexible and works with your lifestyle/personality to maximize both your earnings and your enjoyment!
5. Invest in Your Financial Education
The best way to stay on track with your retirement goals?
Educate yourself about finances!
Choose a Youtube channel, a money podcast, or a blog to check in on daily. Read financial books. Speak with a financial advisor. Anything that keeps you knowledgeable and money-motivated!
Over time, you will grow your financial knowledge and be able to make money-savvy choices for your future. Money is something that affects every single one of us and should be treated as a core part of our personal growth and education. Take the time to learn about different money paths to make the best choices for your early retirement!
6. Create a Money Mission Statement
According to Mike Murphy, CEO of Leadership IQ, writing things down helps you recall and focus on the most important information.
One way to stay on track to retire early is to create your own personal “money mission statement.”
This statement should include how you are planning on saving when you want to retire, what you spend your money on, and why you want to save!
Make it fun and personal and put this money mission statement somewhere that you will see it every day, like on your fridge or as your phone background.
Reach Financial Independence and Retire Early
While the exact numbers and saving methods are different for each individual person if you follow these 6 steps financial independence and early retirement are accessible to you.
You don’t need to be a certified financial advisor to retire early.
There are plenty of educational resources out there that can help people of any age, financial background, and demographic.
What it truly takes is a habit. Making money a focus and starting o build healthy habits around saving, spending, and investing will transform your life so that you can lead a full
Join the conversation and get to know other individuals that are seeking early retirement!
Interested in learning more about how to invest your income? Then be sure to check out our blog for more great resources.
You can also continue to educate yourself by reading the articles in our archive. And you can even join our membership! With our premium membership, we’ll teach you not only how to invest in great long-term stocks, but also sell covered calls and cash-secured puts, trade LEAPS options, and generate a couple hundred to a couple thousand dollars each month. You’ll have exclusive access to our community of wealth builders & all our content, which teaches you step-by-step on how to use these strategies. You’ll also be able to ask me & our team any questions you have & we can coach you each week!