While I know from myself that it is often tempting to get all information before starting on a new journey there is so much information available that you might never get around to starting. Like I pointed out in my previous post your savings rate is by far the most important metric in determining your time to FIRE. So, in this post I will focus on getting started saving and then my next post will specify what to do with the money you save.
Continue reading “Start today!”
If you read along in my previous posts you’d know that I advocate:
- Spend less than you earn
- Invest the difference
This is very simply put what you need to do. Taking it one step further – in order to maximize progress, you’ll need to:
- Cut spending as much as you can while still enjoying life
- Increase salary as much as you can or get additional sources of income
- Invest in a way that earns you the best possible investment return
Continue reading “Why reduced spending is the most significant change you can make”
Just so that we’re all on the same page I’ll write a small introduction to Financial Independence for those that didn’t encounter the term before.
Financial independence: When you live in a way so that you don’t have to go to work to support your lifestyle.
This can be done in a few ways in Denmark:
- Bonderøvsstyle: Buy and pay off a small property then live off the land. Trade certain commodities for what you need.
- Traditional retirement: Work for 40-50 years and then live on a combination of folkepension (public pension) and your savings.
- Investor: Save a large portion of your income. Invest it and live off the interest.
Continue reading “FIRE basics”