Coaches Corner Exclusive: FIRE

There is a popular movement right now called FIRE, which stands for Financial Independence, Retire Early.  The basic premise is that if we can save 50-75% of our income, then we can stop working before the traditional retirement age and still do what we want.  This type of financial plan requires very substantial frugality, and not all of us are willing to give up life’s small comforts (like air conditioning!) to achieve early financial independence.

The principle still stands though…what do we want MOST? Do we want to quit our day job? Buy a house? Go back to college? Start a business? Once we had identified what we want most, we may need to make sacrifices to achieve it.

Consider making a list of top financial priorities, and the second list of things to maybe do without if needed. Here are two starter lists:

Necessities:

Shelter

Food

Utilities

Healthcare

Transportation

Phone

Clothing

Luxuries:

Fancy coffee

Name brands

Beauty treatments

Alcohol

Streaming services

Any new item that replaces something I already own

Setting up our own list may help empower us to give up little things, like fancy coffee or manicures, and possibly big sacrifices, like riding the bus instead of buying a car. Of course, somewhere in the middle is a list of our wants. We might be staying in our mom’s basement and have shelter, but still want a place of our own. If we can figure out how to reduce expenses in the necessities list, then in time, we may be able to afford more luxuries. But oftentimes we get it reversed- we first spend money on luxuries before we have even budgeted for our necessities. The smarter approach is to make a budget for all of our needs and some of our wants. We can decide what we will be satisfied with (and without) and use that to guide our decisions. And then remember every time we give something up it is because we want something else more, and we know it will be worth the sacrifice.

People who are wealthy are rarely big spenders, they are generally big savers. 

Decide what you want MOST.

Here to help,

Your Financially Fit Coaches

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