Hey there, fellow financial adventurers! I’m thrilled to welcome you to my corner of the internet where we delve into my steps to achieve financial independence, smart investing, and the pursuit of a life less bound by financial constraints.

My objective is to attain true financial independence to gain greater control over my overall health and well-being. Despite approaching my late 30s, I remain optimistic about achieving FIRE (Financial Independence Retire Early). While I recognize that I might be a bit late to the game, I’ve been taking foundational steps, such as maximizing 401k matching and saving 15% of my income for a conventional retirement at 65. However, these measures fall short of bringing me closer to my aspirations for a fulfilling life.

Financial independence means having the autonomy and freedom that comes from a secure and self-sufficient financial position. My desire is to break free from the traditional 9 to 5 work structure, or at least have the personal choice and flexibility in selecting my work environments. Consequently, my goal over the next five years is to position myself on the path to Coast FIRE. Through this journey, I plan to utilize this blog as a platform to document personal insights and establish a more structured approach to financial independence.

How I plan to Achieve Financial Independence

Now that I’ve ventured into the tech industry, my strategy for attaining financial independence involves the following five steps:

1. Thorough Budget Understanding:

   • Begin by comprehensively understanding my daily budgets and expenditure patterns. This entails meticulous tracking of both income and expenses. Initially, I’ll use a spreadsheet for simplicity, but the long-term goal is to transition to an online tool that consolidates all my financial data. This approach will facilitate identifying areas where costs can be trimmed, enabling a more frugal lifestyle. This will further help me save money. 

2. Rebuild and Strengthen the Emergency Fund:

   • Prioritize rebuilding my emergency fund as the foremost objective. Over the course of my life, unforeseen circumstances have depleted these funds due to various reasons, such as accidents, assisting family members, and dealing with the expenses of family members passing away. To ensure financial resilience, the focus is on growing a larger emergency fund that covers 3-6 months of living expenses. Building up a solid savings account and finding the right ones to do so. 

3. Debt Mitigation:

   • Address and mitigate existing debts. Acknowledging the prevalent reliance on credit and debt in today’s world, efforts will be directed towards managing and reducing outstanding balances. While I’ve curtailed credit card debt, attention will be given to managing a significant student loan balance and a mortgage supporting my family. I will make sure I pay off all my personal loans, student loans, and make sure my debts don’t eat away at my bank account to I can properly start investing.

4. Moderate Risk Investment Strategy:

   • Develop a moderate-risk investment plan for long-term growth. This involves consistently saving in stock accounts and exploring diversification across various asset types, including real estate. The objective is to strike a balance that aligns with financial goals while considering risk tolerance.

5. Cost Reduction and High-Percentage Savings:

   • Implement a strategy of reducing costs as I allocate a substantial portion of my disposable income into investment funds. This step is deemed crucial, emphasizing the significance of disciplined savings and strategic financial planning as I work towards financial independence.

Discovering FIRE:

A few years ago, I stumbled upon the concept of FIRE (Financial Independence, Retire Early) and it resonated with me. While I’ve been actively saving in my 401(k) and IRA for seven years, the high cost of living in my area made the traditional lean FIRE approach challenging. Enter “Coast FIRE” – my plan to save enough for retirement while kickstarting a side hustle.

Residing in the pricey Bay Area and employed in the tech sector, I navigate one of the most expensive regions globally, particularly within the United States. In the past, I rented 1-bedroom apartments for $2500 to stay close to work, while colleagues paid between $3500 and $4500. I moved apartment to apartment year over year to avoid increasing rent costs due to no rent control. Despite my tech industry involvement, this is a significant expense, especially considering my student loan obligations. Amid the pandemic, I secured a home at a low interest rate (less than 3%), although the competitive market drove the purchase price much higher. Living in such a high-cost area poses challenges to achieving any form of financial freedom habits or financial independence (F.I.R.E.).

While the option to move exists, the proximity to family holds great importance for me. My exploration into case studies on achieving financial independence intrigues me. This blog serves as a comprehensive resource, documenting insights gathered from online and in-person sources.

Becoming a more profound practitioner of investing emerges as a key component for my financial success. I want to be financially free, and that requires understanding the ways people invest. I want to be free of money burdens, but will need to achieve freedom from money, untethering my dependency of it. Despite my affinity for index funds mirroring the S&P 500, I recognize the importance of delving into and comparing different investment options. Exploring nuances in these choices will contribute to a more informed financial strategy.

Addressing various mental states related to money management, including budgeting, travel, insurance, and credit cards, is crucial. Balancing frugality, seeking bargain deals, and enjoying life on the journey to F.I.R.E. requires careful consideration. Understanding the unique paths and costs individuals face, especially in the complex circumstances of 2024, emphasizes the need for adaptability.

In the current landscape of high costs, elevated interest rates, and the repercussions of layoffs across tech, finance, and other sectors, adapting financial habits for long-term financial freedom becomes paramount. Notably, the dynamic factors of the year 2023, including economic shifts, job losses, and global conflicts, underscore the interconnected nature of personal finance and the importance of navigating these challenges in pursuit of financial independence.

Some things I’ll write about:

Join me on this adventure as I share insights and experiences through various categories on my blog:

1. Financial Independence:

   • Tips for achieving financial independence
   • Personal stories of financial independence success
   • Strategies for early retirement
   • Discovering good and bad passive income ideas

2. Investing Insights:

   • Understanding index fund investments
   • Exploring ETFs and their benefits
   • Investment strategies for long-term growth

3. Money Management:

   • Budgeting tips and techniques
   • Debt management and reduction strategies
   • Saving and investing for future goals
   • Finding the best savings accounts to put my money in

4. Success Stories:

   • Interviews and profiles of individuals who have achieved financial independence
   • Inspirational journeys to financial freedom

5. Retirement Planning:

   • Retirement savings strategies
   • Advice on navigating pensions, 401(k)s, and IRAs
   • Early retirement planning tips

6. Personal Finance Tips:

   • General financial advice and best practices
   • Money-saving tips and frugal living
   • Building an emergency fund and financial safety nets

7. Market Trends:

   • Analysis of current market trends
   • Updates on relevant financial news
   • Economic insights affecting financial independence

8. Lifestyle Choices:

   • Balancing financial goals with lifestyle choices
   • Traveling on a budget
   • Achieving financial goals while maintaining a fulfilling life

I’m excited to share my journey, insights, and tips with you. Let’s navigate the world of financial independence together, one blog post at a time! Stay tuned for a wealth of information (pun intended). My journey on UntetheredMoney.com to become financially independent.