The extreme savings plan required to achieve financial independence, retire early certainly isn’t for everyone—but there are some FIRE tips that everyone can implement.
Pay Off Your Debt
One of the key concepts of FIRE is to pay off all debt and to make being debt-free a primary goal. Start with your car, credit cards, and student loans, but set a plan to pay off your home early too. Depending on how much you have left to pay, paying just one extra house payment a year can reduce interest by $10,000 or more. Once paid off, keep new debt to a minimum.
Slash Your Spending
Every little bit extra you can save or apply to debt ads up. Most of us can slash our spending without major sacrifice. This might mean eating out less, fewer café coffees, waiting to upgrade electronics, and truly sticking to your budget.
You certainly don’t have to live in a tiny home to cut your living expenses. Moving to a slightly smaller house or rental unit can save you hundreds of dollars a month in utilities and your monthly mortgage or rental payment. It might not sound like much but every bit you save and invest wisely will grow your savings and retirement fund.
Even if you can create $100 or $200 more a month in your budget it can go a long way in helping you break free of debt and achieve your retirement savings goals.