Why You Should Be On F.I.R.E.

Gentrifanatic The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left.

-Robert Kiyosaki

Gentrifanatics!

Great to have you back!

When I was younger retiring from a job as an old man seemed inevitable.

Culturally that’s just what I was taught. Work hard for 40 or so years and then you get to enjoy whatever time you have left.

But make no mistake those 40 years were going to be hell!

Even as a kid I found it hard to believe that this was the only acceptable life path. It just seemed super depressing.

In my mid-twenties I learned about something called financial independence or financial freedom.

This post will walk you through what financial independence is, how you can get there, and finally, how you can stay there!

What Is F.I.R.E?

F.I.R.E. stands for financially independent and retiring early.
Being financially independent means that income from your investments alone is enough to cover all your expenses.

Gentrifanatic talks about building passive income all the time!

4 Easy Ideas in 2018 To Help You Cure the “Working For Someone Else Until You Die” Syndrome

Money has a bad rap these days. Think about it, ever since 2008 it seems that rich people are viewed as greedy and heartless.

It’s simply not the case. If someone is greedy and heartless they’ll be that way whether they have money or not.

Money is a tool.

That’s it.

You dont hate a hammer when you bang your thumb do you?

You realize that you made a mistake, and hopefully youre more careful next time.

Money doesn’t directly buy happiness but it does create free time and allows you to take advantage of opportunities.

Be real with yourself; you dont want to work to make someone else rich. Usually people only do this because they aren’t aware of the other paths in life that are available to them.

That’s where Gentrifanatic comes in!

These posts aren’t for the average 9-5 worker that works harder at getting better at their job then they do at improving their own life!

You’re here so you’re one of the few that are willing to break out of the normal way of thinking into a financial mindset that your parents probably either never knew existed, or were too afraid to try!

Why isn’t everyone doing this if it’s so great?

Well Thomas Edison said that…

Opportunity is missed by most people because it is dressed in overalls and looks like work

Getting to F.I.R.E. primarily takes two things: sacrifice and discipline.

How To Catch F.I.R.E.

Retiring early and being financially independent sounds great, but how?

It starts with being conscious about your finances.

Know what you’re spending money on.

For most people the top three are housing, transportation, and food.

Find ways to cut costs in these high spending areas and save that money!

If you rent, get a roommate.

When you can buy a house buy a duplex and rent the other side out. If you really want to save get a roommate in your side too!

Income from rent can cover your entire mortgage and then even pay you if you structure the deal right!

Dont buy a brand new car. Dont buy an expensive car. If you can save up and pay cash.

Buy food in bulk. Meal prep. Dont eat out all the time.

All of these things should get you to a point where you can save a high percentage of your income.

If you make 50k per year your goal should be to save 50% of your income!

It sounds like a lot but think about it. If you’re saving 50% of your income it won’t take long until you have a significant chunk of cash!

Make sure you’re not saving just to save.

Save to invest!

You’re losing money in the bank.

Find the right investment for you whether its stocks, real estate, or business.

How To Stay On F.I.R.E.

Financial fitness is just like physical fitness.

You can’t work out once a month and expect to have an 8 pack.

You can’t save money one month and then spend it all the next.

If you’re persistent you’ll get it, if you’re consistent you’ll keep it.

Financial independence is a lifestyle. Most millionaires and financially free people dont live lavish lives in the sense that you see on tv. What’s lavish about their lives is that they have the freedom to do what they want, when they want.

If your goal is to have a Ferrari and a mansion then make a plan. Budget for it. How can you make that work?

Likely by the time you really think it through you won’t want those things.

Once you truly understand how money works cars and big houses seem foolish.

Like why would that guy have a Bentley if his house isn’t paid off?

Staying on F.I.R.E means living a life of smart investing and spending.

It all goes back to not buying liabilities and buying assets.

Ferrari = Liability

Mansion = Liability

Unless these things are making you money, you shouldn’t be buying them.

Of course I’m biased to using real estate. Passive income streams that come from real estate are unmatched in my mind.

Then on top of that there are real estate tax breaks and appreciation that just make it amazing!

Financial independence really starts with, and is fueled by your savings rate.

Some experts say that if you make 50k after taxes you’d need to save 82% of your income in order to retire in 5 years.

Can you get by on 9k a year, $750 per month?

Extend your retirement date to ten years in the future and you would have to plan on living on about 17k per year or $1400 per month.

This is a mindset that you have to wrap your brain around.

A lot of people are saying well that means I won’t have a life and ill be miserable.

Really?

What is making you so happy with your current lifestyle?

Going for financial independence will make people you know say that you’re crazy and doubt you.

What authority do they have? Dont they do things like everyone else? Aren’t they getting what everyone else has?

You want to be financially free.

Are you capable of doing what it takes?

If you want to run ideas by me or talk it our let me know!

Just HMU, I’ll be around!