There is a relatively new movement for people looking for more control over their lives called FIRE. That stands for Financially Independent/Retire Early. For the first time, people are able to do things differently and live life according to how they see fit and enjoy massive gains as a result.
There has never been a better time to make money than right now and people are taking advantage.
If you are tired of living in the rate race and want to enjoy your life as a whole, then having a FIRE plan is your ticket. In this article, I will give you several ideas that you can use to implement your strategy for financial independence.
1 - Invest
The easiest and most effective way to gain financial independence is to have your money work for you too. If you are thinking you need to work more to make more money, then you need to adjust that thinking.
People get rich not by working more but by working smarter. Look around for wise investment opportunities and take advantage. Start out by getting into cryptocurrency.
Just create bitcoin wallet and start trading some cryptocoins to take advantage of the increasing value of bitcoin these days.
This is the easiest way to invest, but it does carry some risk. If you don’t like the idea of risking your hard earned money and are ok with making less of a return, then parking your money in index funds is a great way to be safe while making money.
You can usually expect to make around 6% per year in index fund returns.
2 - Downsize and live frugally
For regular people, becoming financially independent doesn’t mean living in luxury. It simply means that you can make better decisions because you don’t have to worry about where your money is coming from. In other words, try to live frugally.
Which means that if you set up your life to require less material stuff then you can set yourself up for independence much easier.
Find yourself a small house to live in with less possessions. The tiny house movement is very popular with people in the FIRE club. It saves money on rent or mortgage, on utilities and you are much more aware of spending money and end up buying less.
3 - Start a side hustle
When you are working full time you hit a ceiling with regards to how much you can make. To go beyond that ceiling you need to take on a second income.
This can mean a lot of things like a second job part time or driving for Uber in your spare time. But, the most effective use of your time is to start an online business or job.
If you want to make extra money doing something simple, then you can find plenty of gigs online like data entry or virtual assistant. Or, you can create something that brings in a considerable amount of cash. You can start an ecommerce site in your spare time and it can end up replacing your full time income.