Here is a quick list of 10 things that my husband and I do in order to get closer to FIRE (financial independence retire early):
- Set automatic monthly withdrawals to our savings and investment accounts
- Save 20% of our take home pay in addition to 5% of our pre-tax income we contribute through work + the additional 5% our employers match for a total of 30% savings
- Save 50% of all windfall income i.e.) tax refunds, bonuses, overtime
- Buy used for most depreciating assets i.e.) cars, furniture and major equipment
- Keep housing costs less than 25% of take home pay (includes utilities and maintenance/repairs)
- Give of our time and money. No man is an island, its good to help others when possible. We are very active in our local community and give to our church & other charities.
- Be adequately insured. Life and auto insurance. Because we want to be prepared for the worst and hope for the best.
- Learn to graciously say no and bow out of commitments that will cost us money that we did not plan for or don’t really desire to attend.
- Save for a rainy day by planning ahead financially. We don’t know what the future has in store for us, but we like to be prepared for some of it. Our emergency fund helps us do that.
- Spend more on people and experiences than on “stuff” and never compare ourselves to our neighbors.