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- Financial Independence: How to achieve FIRE in just 4 steps
- Financial Independence Early Retirement (FIRE) Calculator
One of the biggest challenges of following FIRE isn 8767 t the tactics, it 8767 s choosing to live differently than those around you. It 8767 s choosing to live your own life and not the life that anyone else is living.
Financial Independence: How to achieve FIRE in just 4 steps
While many of the best FIRE books include sections on investing, The Bogleheads Guide to Investing is by far the best investing book I 8767 ve read and is a great place to dive deeper into the FIRE investing strategy.
Financial Independence Early Retirement (FIRE) Calculator
Ramit has a great way of making money very simple and with a large focus on income optimization and launching your own business this is an exceptional book for entrepreneurs.
With a large focus on house hacking and real estate, Scott lays out a step by step plan for anyone to strategically use real estate to make work optional.
I 8767 m sure there are many expenses in your life that you 8767 d be happy to substitute for free alternatives post-FI if you take some time to think about it.
While I would by no means call myself an advanced real estate investor, I 8767 ve read quite a few real estate investing books and this is by far my favorite.
If you 8767 re interested in making more money (remember you can only cut back so much), then you should check out I Will Teach You to Be Rich , a true personal finance classic.
“I’ve already been able to double my production at work and I've really started to be able to systematically overcome my weaknesses and fears.”
If you have to go out and make extra money to buy something, you 8767 ll most likely only buy things you really need or desire. You will truly be trading your free time for stuff so you will most likely only do that for things that are really important to you.
“You should do all that you can to legally reduce your tax burden,” PoF explains. “If you max out your workplace retirement accounts and an HSA [Health Savings Account], you can deduct a significant sum from your taxable income. There’s only so much a wage earner can do, but do all that you can to pay the least and save the most.”
A Simple Path to Wealth is largely based around a series of blog posts JL wrote on his website about stock investing intended for his college bound daughter.
“Realize that the small stuff is just that — small stuff,” PoF says. “The biggest expenses are the big stuff like housing, transportation, and travel. Don’t rent or buy too much home, spend too much on a luxury auto or lengthy commute, and learn to be comfortable at a Comfort Inn.”
We provide investment services and other financial products through several affiliates. Our Invest and Smart Savings products are offered by Wealthsimple Inc., a registered portfolio manager in each province and territory of Canada. Our Trade and Save products are offered by Canadian ShareOwner Investments Inc. (ShareOwner), a registered investment dealer in each province and territory of Canada. Some clients of Wealthsimple for Advisors have accounts with Wealthsimple Advisor Services Inc. (WASI), a registered mutual fund dealer in each province and territory of Canada. Our Cash product is offered by Wealthsimple Payments Inc., a FINTRAC registered money services business. Our SimpleTax product is offered by SimpleTax Software Inc.
It 8767 s an incredibly moving story and the perfect entry point to FIRE, especially if you want to get one of your friends or your partner on board. Sometimes books full of charts and numbers can feel a little like homework and be too daunting.
Remember our example using the average salary and expenses? Looking at the chart, we know now that the average American needs to save about $6,555,555 in order to retire early. Our savings rate will then be about 87% of our annual income each year in order to save enough money to retire early (we’ll go into how long it’ll take later).
He continues, “HSA account holders can contribute pre-tax dollars to the account and can then withdraw money from the account, tax-free, when paying for qualified medical expenses.”
From there, FIRE comes down to math and mechanics. Many FIRE retirees engage in the same set of tactics when it comes to cutting costs. These include lowering housing costs driving used cars cutting the cable cord (as is increasingly common now anyway) using credit card rewards to help fund travel and cutting grocery bills.
Not only because of the simple steps that get more complicated as the book builds, but because the focus, like in Your Money or Your Life , is on how much is enough?
I loved this book so much. It is so full of life and color and beautifully written. I expected a lot but was blown away. This is unlike any other money book I’ve ever read and will inspire a ton of people.