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.

  • Extra cash – And regardless of where you are on the path to financial independence, we believe in the responsible use of credit cards. It’s smart to utilize the additional benefits that credit cards offer- for instance the 60,000 points that come with the Chase Sapphire Preferred Card. That’s $750 when you redeem through Chase Ultimate Rewards! This is no joke- I’ve already done this myself which we discussed on a recent episode after I met the initial spending requirements of $4,000 over 3 months!

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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2 comments on “FIRE: Choose Your Own Adventure – Episode 380

  1. 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.