Prior to embarking on my FIRE journey, I maintained my life savings in my checking account, showcasing proficiency in saving money but a lack of understanding in investing and wealth growth. Retirement accounts and investment strategies left me feeling behind, prompting a commitment to rapidly catch up.
Here’s how I achieved it:
- Eliminated Excuses:
I discarded a plethora of excuses, such as the absence of financial education and a belief that investing was only for the affluent. Letting go of these excuses allowed me to focus on what I could control and realize my influence over more aspects of my financial situation than initially perceived. - Relocated:
Living in a costly metropolitan area with high living expenses and job market competition, I opted to move to a region with fewer taxes, lower population density, and reduced stress. This decision resulted in a spacious rental home at a lower monthly cost, contributing to significant savings for future investments. - Found a New Job:
Exploring job opportunities in the new area revealed less competition, enabling me to secure a position with a 30% higher salary and outstanding benefits. The new job not only elevated my income but also improved my overall work-life balance and job satisfaction. - Requested a Raise:
After a year in the new role, I strategically approached my boss for a raise, highlighting increased responsibilities and acquired skills. This led to a promotion with a substantial pay increase, pushing my salary to nearly 50% higher than a year prior. - Debt Elimination:
Recognizing the need to accelerate savings, I focused on paying off debts using Dave Ramsey’s snowball method. This targeted approach, prioritizing high-interest debts, proved effective in reducing financial burdens. - Started a Side Business:
Leveraging my passion for writing and marketing, I initiated a freelance writing and consulting side hustle. While not a primary income source, it contributed approximately 8% of my annual salary, funding additional luxuries and enhancing financial flexibility. - Implemented Budgeting:
Transitioning from disorganization to a structured budgeting approach unveiled spending patterns and areas of waste. Budgeting became a tool for setting financial goals, ensuring necessities were met, and facilitating savings for both needs and wants. - Learned by Immersion:
Overcoming initial challenges in understanding investment language, I immersed myself in the online personal finance community. Following influencers and blogs, along with utilizing platforms like Seeking Alpha, facilitated a quicker grasp of financial concepts and successful entry into the world of investing.
In summary, the pivotal steps I undertook may not be universal wealth-building hacks, but their effectiveness lay in the commitment to addressing weaknesses, devising a plan, and executing it diligently. This journey, while personal, serves as a testament to the impact of taking control of one’s financial destiny.
