How did you reach FI?

Achieving financial independence and potentially retiring early (often referred to as FIRE – Financial Independence, Retire Early) is a goal many aspire to, and it involves a mix of saving diligently, investing wisely, and planning strategically. Here are some general steps and advice that can help guide you on this journey:

1. Set Clear Goals: Define what financial independence means to you. Does it mean having enough income from investments to cover your living expenses, or does it mean reaching a specific net worth? Setting clear, measurable goals is crucial.

2. Create a Budget: Understand where your money goes each month. Track your expenses and identify areas where you can cut back. This will help you increase your savings rate.

3. Build an Emergency Fund: Before heavily investing, ensure you have an emergency fund to cover unexpected expenses. This helps avoid the need to withdraw investments prematurely, which can be detrimental to long-term growth.

4. Invest Early and Often: The power of compounding cannot be overstated. Investing in a diversified portfolio consistently over time can help grow your wealth. Many people invest in stocks, bonds, and real estate as these assets have historically provided good returns over the long term.

5. Utilize Tax-Advantaged Accounts: Take advantage of tax-advantaged accounts such as superannuation funds in Australia. These can provide tax benefits and help accelerate your journey towards financial independence.

6. Keep Learning and Adapting: Financial markets and personal circumstances change. Continuously educate yourself about financial strategies and investment options. Adjust your plan as needed based on personal life changes and economic conditions.

7. Live Below Your Means: This is perhaps one of the most important aspects of achieving financial in

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Hi Noah,

You might be hoping to hear from someone other than myself, but I felt I should reply anyway.

I’ve been sharing exactly this on my blog for the past 7-8 years and ended up putting it into a book by the same name – Strong Money Australia.

I invested in property and then shares a bit later on. My biggest realisation was that most of my progress was actually driven by being an aggressive saver rather than investment returns. That tends to be true of a lot of people in the FI community who make lots of progress at a young age.

I basically just earned as much as I could, spent as little as I could, and invested as much as possible for like 8 years. I reached FI 8 years ago now and can’t imagine ever going back to a full time job again. Living with more freedom is addictive.

Hope you get some other useful replies here, but if you want any more from me my website is probably the place to go.