Episode 138: Learn how to achieve Financial Independence with a step-by-step guide in Choose FI: Your Blueprint to Financial Independence, a book by Chris Mamula.
Top Tips for Achieving Financial Independence
Learn the Rules
Learn the rules surrounding what people usually do and what people should be doing to achieve financial independence and retire early. Some rules are made to be broken, others should be followed if you want to be a part of the FIRE community.
Question everything; that’s how you learn. The only stupid question when it comes to achieving financial independence is the one you don’t ask.
Challenge the Status Quo
Don’t do something because it’s expected. For example, many people get a better paying job and go out to buy a new car or a bigger house. It’s what people expect. Do something different if you want to end up in a different place.
The unhappiest people are those who always chase happiness.
Learn the Math of Your Investments
Take time to educate yourself in terms, like compound interest. Learn about the different types of investment accounts to find which ones will work for your situation.
Understand Tax Laws
The more you understand taxation, the better your returns will be. This is an important consideration as you build wealth and consider retirement.
Watch Out for Biased Sources
Learn about finances from unbiased sources. For example, Chris’s book “Choose FI| Your Blueprint to Financial Independence” and the 2 Frugal Dudes podcast. Learning all about investing from your financial advisor isn’t unbiased because they stand to make a profit based on your decision. The same applies to learning about homeownership from your real estate agent.
Prioritize Earning over Investing
While investing is important, learning how to manage your debt and grow your income should come first: you can’t invest if you don’t have money to invest.
Shift Your Mindset
Being financially independent requires a significant mindset shift. You need to act like the person you want to be to achieve your financial goals.
Have an After Plan
Achieving your goal to retire early can be a shocking lifestyle change. Consider how your life will change and what steps you’ll take to be happy where you are.