Have you heard of FI/RE? Well, imagine having your personal finances and lifestyle set up so that you never have to work again. What would you do? Spend more time with the family? Travel more? Be at one with your sofa? It’s called Financial Independence / Retire Early and it allows you to live your best life.
And the beautiful truth is that in principle, anyone can do it. It’s simple. Hard work, but simple.
We’re putting together a free resource library which you can delve in to at any time that consolidates everything we’ve learnt about FI/RE so that it’s right here at your finger tips.
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We also have a free Beginners Guide that will walk you though the basics.
What is Financial Independence?
Financial Independence (FI) – a state in which an individual or household has sufficient wealth to live on without having to depend on income from some form of employment.
In theory, it isn’t difficult. If this concept is new to you, however, then there are a few things to get your head around. And whilst the main principles are fairly simple, the nuances and balance can be very interesting and are hotly debated within the FIRE community.
Being truly Financially Independent means you have accumulated enough money to cover your expenses for the rest of your life. You may think that’s impossible, but people in the 30s, 40s and 50s have been doing it for years. There is a growing movement where people are rejecting the traditional workplace and taking back control of their lives.
It’s about the journey, not the destination
Following the principles of FI/RE will increase your independence, give you more control and empower you. Even if you are not fully FI or are able to retire, having sufficient wealth that would financially support you for a few months or years puts you in the driving seat.
Evening being on the journey to FI/RE has many benefits:
- more power when negotiating with employers
- greater ability to move or wait for the ‘right’ job
- move into a new field/career
- lower risk when setting up your own business
- reduce working hours
- spend more time volunteering for an important cause to you
- less money worries
Financial Independence, be it the journey or the end-game, is not really about the money itself. Money is just a tool. It’s the enabler that gives you more time, wider choices and greater confidence.
Many people embrace the ‘
Beginners Guide to Financial Independence
Creating a beginner’s guide to Financial Independence that you specifically can follow is tricky because everyone has a different starting point. What your journey looks like and how you go about it is a very individual thing based on your circumstances, your goals and the type of person you are.
There are, however, a few general overriding principles to use as your guide. The trick is to take these principles then adjust and tweak them suit your personality, situation and goals. Make them your own. You do you.
When followed, the bottom line is that these basic principles will increase your personal wealth. Even if you don’t take them to the full conclusion to provide total Financial Independence which enables you to Retire Early.
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