4 Simple Steps to Help you Reach Financial Independence, Retire Early (FIRE).
Reaching financial independence and retiring early (FIRE) is not for the faint of heart. It requires extensive work and discipline. Here are 4 powerful steps that are essential to reaching FIRE.
1. Save more.Although saving alone will not help you reach FIRE, it is an essential component in achieving this lofty goal. One cannot expect to secure a strong and early retirement without adequately and aggressively saving money.
2. Earn more.
Want to achieve FIRE? Earn more each year. There are a host of things you can do to increase the amount of money you bring home each year, including asking your boss for a raise or getting a side hustle, among others. A side hustle allows you an opportunity to earn extra money. You can use that extra money not only to reduce debt but also to invest and save for retirement. A very popular side hustle is driving for Uber or Lyft. Nitro has compiled a list of the 11 best side hustles to help you earn extra money.
3. Spend less.
You cannot talk about reaching FIRE, if you cannot curb your spending habits. When you spend less, you have more access to capital that can be put to work to further maximize your income.
4. Invest more.Saving money is important, but investing is the absolute best way to supercharge your money and help you catch FIRE! Investing in the stock market gives you an opportunity to take advantage of compounding interest. Anyone can invest; you don't need a lot of money to start investing. Visit our investing blog to see how easy investing can be.
The bottom line
Reaching financial independence and retiring early require considerable effort and energy. There a lot of critical components to reaching this process, but we think that if you save more money, earn more money, spend less money, and invest more money, you will be well on your way to enjoying FIRE.