Financial independence and early retirement isn’t a tough nut to crack and anyone with passion and knowledge of the required life hacks can enjoy the benefits of FIRE (link to ‘Sneak-Peek into the Benefits of Early Retirement’). Here’s a list of steps that can help you attain Financial Independence and early retirement:
Manage your expenses
This is an obvious step and it cannot be looked down if you wish to reach your goal. The lesser the money you spend, the more you will be able to invest and save for retirement. You want to slowly adapt to an affordable lifestyle and the savings will help you with early retirement. Cut your recurring subscriptions like gym membership or cable TV. You can also try and lower your housing expenses by moving to a smaller and affordable apartment in case you are living in a big one and make your own meals instead of going out to eat every day. Managing your expenses tightly, will allow you to accumulate a considerable amount of money and help with your personal finances.
Get a side hustle
Try having a second source of income to achieve your financial goals. Consider your interests and talents and see if you can monetize them. It can be as simple as helping others fix their computers, teaching a second language that you are well versed in or even starting your own podcast or YouTube channel. Do not wait to start off with this. Now is the right time to begin your side hustle as the sooner you start, the further ahead you will be a few years from now.
Smart savings is the key
Once you cut down on your expenses, you will have a lot of money available to invest that money in a savings account that offers high savings rate and this will help in paying your expenses later in life when you will have taken an early retirement. When you do not spend money, you’ll have more of it. Instead of purchasing more material stuff, you purchase time and when you are not working, you get to spend this time doing things you love and spending it with your friends and family.