No one ever said they can’t wait to wake up at the crack of dawn to go to a job they don’t like with no clear plan to escape the grind.
Everyone dreams of the day when they no longer have to rely on their job to support themselves and achieve financial independence. But the truth is, financial independence means something different for everyone; it’s not a one-size-fits-all concept.
For me, financial independence means reaching the point where I no longer need to work to support myself or my family for the rest of my life. But I’m a bit different because I actually enjoy working. So for me, it also means being able to work and be productive without the financial stress and reliance that usually come with a job.
Good health is another crucial aspect of financial independence for me. You might think that being healthy doesn’t have much to do with not having to work anymore, but hear me out. Healthcare costs are sky-high—not just the health insurance premiums, but also doctors’ visits, medications, and treatments. It’s expensive even for healthy individuals, let alone those who aren’t.
If you can take some control over your health, it will help you manage your wealth as well. Plus, what’s the point of striving for financial independence if you neglect your health? Or worse, if your path to financial independence comes at the expense of your health? Like me, you probably want to enjoy a high quality of life on your journey to financial independence and once you’ve achieved it.
A Healthy Lifestyle Matters
Though we can’t control our health entirely, countless studies highlight the positive effects of diet and exercise. Before I even started actively pursuing financial independence, I recognized the importance of being healthy and encourage you to do the same.
But simply agreeing with me isn’t enough; you need to take actionable steps. I’m not here to prescribe a specific plan because everyone’s different, and you need to discover what works best for you. My goal is to shift your thinking about your health, particularly regarding diet and exercise.
Sure, diet and exercise will improve your appearance, but more importantly, they’ll make you feel better. I’ve always led an active, healthy lifestyle, but it might be out of your comfort zone. If so, I urge you to step out of that zone. You don’t need to run a marathon or stick to eating only cabbage and celery. Just like compound interest can significantly grow your retirement account, eating healthily and exercising will yield “compound health interest” in your life.
Need a starting point for taking control of your health and fitness? Check out a “Beginners Guide To Improving Health And Fitness.”
Be Aware of the Hype
We live in a consumer-driven society where companies and influencers try to sell us a dream lifestyle. I fell for it for a while. I spent all my money trying to keep up with the Joneses—going to bars, clubs, and buying expensive clothes and watches. I even took pricey trips.
Then I realized that despite all my spending, I wasn’t genuinely happy. The people in advertisements looked happy, the influencers seemed thrilled, but living this lifestyle wasn’t fulfilling for me. This realization hit hard when I found myself $28,000 in credit card debt at 25 years old.
I had to make changes and, unfortunately, I didn’t have a time machine. So, I researched and created my first budget. I set specific spending limits for various categories, which helped me control my finances and get out of debt.
I also took a few more steps: I transferred high-interest credit card debt to a new card with 0% interest for 18 months, included saving as a line item in my budget, and adjusted my spending habits. Each month, I reviewed my finances and tweaked my budget for improvements. After a year and a half, I was out of debt and even had some savings.
I highly recommend starting and sticking to a budget because it’s a powerful tool for taking control of your life. Need help creating a budget? Try reading “How Literally Anyone Can Create A Budget.”
Steps to Financial Independence
401(k) Matching
Throughout my career, whenever possible, I’ve always invested in my employer’s 401(k) to get the maximum company match. I do this for three reasons. First, it’s a tax-advantaged way to save for retirement. Second, it’s free money from my employer. Third, it benefits from the power of compound interest.
My plan is to keep contributing to my employer’s 401(k) to get the maximum match. If you can, I suggest doing the same.
Roth IRA
Five years ago, my wife and I opened Roth IRA accounts, aiming to contribute $100 monthly. We hoped to max out our contributions within five years but managed to do it by the end of the second year. If you don’t have a Roth IRA or an IRA, I encourage you to open one and start contributing right away, especially if your employer doesn’t offer a 401(k). These accounts benefit from compound interest and give you greater control over your retirement savings.
Fixer-Upper Flip
Alongside getting married, which is stressful enough, my wife and I decided to buy a fixer-upper to renovate and sell for profit. It was a challenging experience, marked by a dishonest contractor and soaring renovation costs. Despite these setbacks, we learned a lot, and the house is now worth much more than we paid for it. Our end goal is to leverage this experience for future profits, either through flipping properties or renting them out.
Start Your Journey
Everyone’s path to financial independence is unique. Though I’ve shared mine and offered strategies, you need to find what works best for you. Best of luck on your journey!