Retirement; like your parents, but way cooler
In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience.
Achieve Financial Independence?
independence is the state of
having enough wealth and income to support your lifestyle without having to rely
on traditional employment. It is often associated with the goal of retiring
early, but it can also refer to the ability to have more control over one's time
and work-life balance, even if that means continuing to work in some capacity.
Achieving financial independence typically
involves a combination of saving,
investing, and budgeting. The first step is to
create a budget that allows you to live below your means and save a significant
portion of your income. This money can then be invested in a diversified
portfolio of assets, such as stocks, bonds, and real estate, which can provide a
steady stream of passive income.
One of the most popular strategies for
achieving financial independence is the
FIRE (Financial Independence, Retire
Early) movement. This movement is based on the idea that by saving and
investing a high percentage of your income, it is possible to retire much earlier than
traditional retirement age. The FIRE movement emphasizes frugal living, low-cost
index fund investing, and a focus on building a portfolio of income-producing
One key aspect of achieving financial
independence is understanding
the concept of your
"number." This refers to the
amount of money you need to have saved and invested in order to generate enough
passive income to cover your living expenses. This number will vary depending on
your individual circumstances, such as your desired lifestyle, inflation, and
how long you plan to be in retirement.
It's important to note that achieving
financial independence is not a one-time event, but rather a continuous process
of monitoring and adjusting your savings, investments and
Inflation, market fluctuations and other external factors can affect your
financial independence, so it's important to regularly review your portfolio and
make adjustments as needed.
Another important aspect of financial
independence is risk management. The key is to find a balance between taking on
enough risk to achieve growth, but not so much that you are constantly worried
about losing your savings. Diversification is one of the key ways to reduce
risk, as well as having a solid emergency fund and adequate insurance coverage.
It's also important to consider the tax
implications of your investments, as well as the costs associated with them. One
way to minimize these costs is to invest in low-cost index funds, which have
lower expense ratios than actively managed funds. Additionally, the use of
tax-advantaged accounts, such as a Roth IRA or 401(k), can help minimize taxes
and maximize the growth of your savings.
In order to achieve financial independence,
it's essential to have a clear vision of your goals and a plan to achieve them.
This includes setting realistic financial goals, creating a budget and sticking
to it, and investing wisely. Additionally, it's important to have a positive
attitude towards money and to be willing to make sacrifices in the short-term in
order to achieve long-term financial freedom.
It's also important to surround yourself
supportive community, whether it's friends and family, financial
advisors, or other like-minded individuals who share your goals. This can
provide a source of inspiration, encouragement, and accountability as you work
towards financial independence.
In conclusion, financial independence is
not just about retiring early, but about having control over your time and being
able to live the life you want. It's a combination of smart budgeting,
investing, and risk management. It's not easy and it takes time, patience, and
discipline to achieve, but the ability to have control over your financial
future and the freedom it brings is worth the effort.
About the Authors
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
Retire Early Lifestyle Blog
About Billy & Akaisha