This episode is all about FIRE which stands for Financial Independence Retire Early. This movement came about as an entire generation began to push back against the notion of traditional retirement- working hard in a job you hate so that you can kick back when you’re 65. Thanks, but nah. We have friends who have completely rejected that idea and have retired in their 20s and 30s, but the most important thing to keep in mind is that the pursuit of financial independence doesn’t have to look a specific way. Just like those books we loved in the 90’s you get to choose your own adventure! From leanFIRE to fatFIRE and everything in between, there are a variety of lifestyles we can aspire to. So we’ll talk about the different types of FIRE and then some of the most important tactics to consider on your path to achieving financial independence.
Additional links:
- If you’re looking for a deeper dive into the Pros and Cons of the FIRE Movement…
- Mr. Money Mustache’s 2012 post, the Shockingly Simple Math Behind Early Retirement is a classic and changed how many viewed retirement- including yours truly. If you just want to play around with your own numbers check out the early retirement calculator at Networthify.
- The MadFientist does a great job crunching the numbers and explaining why you should still be investing within a retirement account, even if you’re planning to retire early.
- Credit Card Tool – Looking for the right credit card for you? Then check out our new credit card tool that’ll help you to easily filter through all the cards based on your preferred airline, whether or not they have an annual fee, or simply by the cash back offer! Just toggle the sliders and you’ll know which card to consider.
During this episode we enjoyed a Smells Like Bean Spirit Double Maple by Mikerphone Brewing! And please help us to spread the word by letting friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular listener, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to change the conversation around personal finance and get more people doing smart things with their money!
Best friends out!
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When it is recommended to save 50% of your income, what is the mix in terms of cash, investments, savings, and retirement accounts that is recommended? I know that when you max out 401K and IRA, you don’t get to 50% so I was wondering where to stash the rest of the savings. Thanks! Nick
Hey Nick. That’s a tough question to answer without knowing more about your specific situation. Saving 50% of your income can be a great goal! But for some folks that would mean putting off too many life goals that require some of that money. If you are able to save 50% of your pay while still enjoying your life then it’s worth striving for. You never know what other goals will pop up along the way – like taking big chunks of time off to spend with family or starting your own business. Definitely make sure you keep enough cash on hand and work towards maxing your retirement accounts first. After that opening up a brokerage account (or getting into real estate investing) are the next best places to funnel your additional investment dollars.