If you want to live as independently as possible, then you’re probably aiming for FIRE. In other words, you want Financial Independence, including to Retire Early. Obviously, you simply don’t want to get chained down to a 9-5 job for decades upon decades. Instead, you want to be free of that burden as early as possible. But how early in your life is it truly possible to FIRE? You can FIRE at 35 if you do these things:
Start Investing in Your Early Twenties
In fact, in today’s world, even teenagers have the opportunity to learn about investing. Smart parents can help their children plan to FIRE at 35 by teaching them about investments at a very young age. In any case, if you want to FIRE then you need to begin investing as early as possible. If you start investing and aggressively accumulating wealth in your early twenties then you’ll have more potential to FIRE at 35.
Investing tips for early retirement include:
- Max out your retirement contributions. Get a job that matches a high percentage for you.
- Invest in a variety of high-risk and low-risk opportunities,
- For example, invest in stocks and low-index funds as well as cryptocurrency.
- Constantly continue to educate yourself about smart investing. Don’t relax in this area.
Develop Passive Income Streams as Early as Possible
This is one that teenagers and even younger kids can start doing thanks to today’s modern world. Kids can blog, vlog, and even earn money as social media influencers. There are children publishing books and online courses. As early as possible, begin to develop these types of passive income streams. After all, the blog you start at 15 might develop into something that can earn you passive income by the time that you’re twenty. This allows you to turn your attention and energy to other means of earning money while still generating income from that initial source. The more passive income streams that you have, the easier it is to FIRE at 35.
Enter a High-Income Job Industry
Your passive income and side hustles are important. However, before you FIRE, so is your main job. Therefore, you need to focus on earning as much income as possible from that job. You want to grow your salary year upon year. Work smarter, not harder to make as much money as you can. Tips for doing so include:
- Get in on the cutting-edge of high-earning industries. For example, right now cryptocurrency is hot.
- Go above and beyond to educate yourself. Become an expert in a niche field.
- Make yourself indispensable. Do the job better than anyone else no matter what job you’re doing.
- Consistently negotiate your salary up. Don’t hesitate to ask for more if you’ve earned it.
Start Your Own Business, Too
First, develop passive income streams. Continue to grow those throughout your lifetime. Then, get that high-paying main job. However, don’t ever forget that ultimately you want to be your own boss. As soon as possible into your career, start your own business. This is the business that you want to continue doing on your own once you officially retire.
After all, FIRE doesn’t necessarily mean that you never work again. It means that you retire from the 9-5, from working for someone else, from working because you have to pay the bills. FIRE means that you might run your own business part-time or full-time, remotely or however you see fit at any given time in your future. The earlier you can start that business, the better off you’re likely to be. If you are open to transitioning from your regular job to full-time self-employment / entrepreneurship, then you can FIRE at 35.
Live a Super Frugal Lifestyle
Earning money, particularly through investing and other passive income streams, is the main portion of young financial independence. However, you also want to save as much money as possible. Learning to live a very frugal lifestyle from a young age can go a long way towards this savings. Things you might consider:
- Forego an expensive college education. Hack your education instead using the free resources that are out there. Or, at the very least, begin with community college.
- Live car-free with roommates in an affordable city. The younger you are, the easier it is to adapt to this type of lifestyle because you’re not used to anything else, yet.
- Stay out of debt. Do whatever it takes in your life to avoid getting into debt. You don’t want to pay money in interest. In contrast, you want to earn interest on your money.
- Live well within your means. Remember, the stricter that you budget your money now, the more aggressively you can save for the future. This is what will allow you to FIRE early. Moreover, it will help you in your early retirement years if you need to live lean.
Figure Out the FIRE Life You Want to Live
Speaking of living lean, there are different types of FIRE lifestyles. You might plan for Fat Fire, Lean FIRE, or somewhere in between. It’s crucial that you decide early on what kind of FIRE lifestyle you’re aiming for. After all, that’s how you’ll set your goals. In order to FIRE at 35, you must get really clear on what your financial goals are. You have to set them, then power straight ahead to achieve them. So, learn as much as you can about the types of FIRE lifestyles people live. Constantly educate yourself about early retirement options through podcasts, blogs, books, and talking directly with others who live the FIRE dream. And make sure that you have realistic expectations of how much wealth you need in order to FIRE at 35.
Get a FIRE Mentor
If you want to live independently, then you might think that you need to do it all on your own. However, that’s false. The more support and guidance that you have, the more likely that you’ll succeed. Get financial experts involved in your life – both as professionals (such as a money manager) and as personal friends. Find yourself a FIRE mentor or two and lean on them for support as you go through your financial journey.
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