Callin’ all millennial chicas who want to achieve financial independence and retire early! It’s time to get your financial ducks in a row. I’m living proof that FIRE is possible even having made big money mistakes along the way. It just takes small but consistent baby steps towards creating wealth.
So are you ready to achieve FIRE too?
Currently, women earn less for every dollar earned by a man. In addition, our dollars have to stretch further to achieve the same lifestyle. We are in the workforce for a shorter period of time.
Between maternity leave, part-time work, and parenting, we generally dip in and out of the workforce. Thus, we have smaller retirement savings and fewer earning years.
Yet our retirement savings need to last longer.
Women tend to outlive men by about three years. As a result, many women tend to spend more of their lives single.
We are marrying later in life. And be it getting divorced, being a widow, or choosing to remain single (and fab!), we should be prepared to live self-sufficiently.
Got a great career and making the big bucks? Great! Finances not in order? Not ok.
Boost your financial literacy.
If you are trying to achieve FIRE, knowing your net worth matters. According to financial advisory firm Personal Capital, the median US household net worth is not sufficient for most investors to realize a comfortable retirement.
Net worth peaks at retirement age for those 65 years and up. House and property values may account for the majority of the net worth calculation.
For millennials, net worth can be heavily impacted by significant debt such as a mortgage and student loans. In addition, this generation tends to have lower salaries and less assets.
But over time, these investments may result in higher net worth households.
Net worth = Assets - Liabilities
Let’s make sure we’re on the same page. Your net worth is every significant thing you own (assets) minus what you owe (your debts and other liabilities).
Assets includes cash, investments such as IRAs, 401k accounts, bonds, and stocks. This also includes your home and other valuables such as your car.
Liabilities include what you may owe on your assets and other debts, such as a mortgage, car and student loans. If you have any credit card debt, that number also falls under liabilities.
Simply put, net worth illustrates the amount in cash you would have left over after selling all of your assets to pay your liabilities. This figure provides a measure of your overall financial health and stability. Your net worth can either be negative or positive.
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My journey to financial freedom..
It took me a long long time to let go of my past money mistakes. I had my fair share of meltdowns throughout my emotional roller coaster journey to financial freedom.
Throughout my blog, I’ve mentioned one of my biggest financial regrets was giving over $30,000 to a psychic to help me “remove a curse”. In a nutshell, I was desperate and recovering from a breakup.
But my money mistakes didn’t end just there.
There are many things I wish I did differently with my money in my 20’s and early 30’s. I made a lot of financial mistakes from not investing early enough to overspending on things I didn’t need.
Even as a business major in college, one would think I’d be better with my personal finances. I figured, all I had to do was make more than I spend. Hmmm, not quite!
But had I done things differently, I probably would have achieved financial freedom much sooner. Maybe even in my 20’s.
Yet, the journey to financial freedom made life much more meaningful. After all, life is all about the journey, not the destination right?
Forgive, move on, create more money!
If FIRE is your goal, then it’s time to start forgiving yourself for those cringe worthy financial mistakes. I’m living proof that financial freedom is possible, even if you have made some really bad financial decisions in the past.
Once I was able to adopt an abundance mindset, I was able to notice my blocks when it came to manifesting money miracles. Soon enough, I began to create multiple streams of income.
My goal was to create steady income streams to cover my monthly expenses in addition to having a comfortable emergency savings fund. With my money blocks cleared, I was able to create an emergency fund within 6 months.
Girlfriend, here are 3 must-have tools to help you reach FIRE...
1. FIRE calculator
How close am I to financial independence? I asked this question many many times throughout my life in corporate. In order to know if I was even remotely close to financial independence, I played around with different early retirement calculators.
Of all the different calculators out there, Personal Capital offers one of the most in-depth retirement planning calculators. And it’s free to use!
Know exactly where you stand relative to your retirement goals.
2. Track your net worth
Having multiple income streams and a diversified portfolio is important to reach financial freedom. But keeping track can be a major pain.
I can barely remember my passwords to my social media accounts let alone all the other online accounts I have. You too? No worries, girlfriend. I got you covered.
I can securely link all my financial accounts to get a complete picture of my net worth with Personal Capital. Over time, I saw how my net worth was trending positively. It even helped me take steps to make adjustments in my spending and savings habits.
Ready to face the numbers? Join over 1 million people use the Personal Capital app to track and manage their net worth.
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3. Investment strategy
Not sure where to start with investing? I hear ya. Determining your asset allocation and constructing your portfolio can be overwhelming.
But in order to reach FIRE faster, the key is to have your money work for you. Yes, your money should be earning more money for you...not just withering away in a savings account (losing value to depreciation!)
The registered advisors at Personal Capital provide a range of financial planning support. This even includes home financing, retirement planning, and stock options.
We all may have similar goals for financial freedom but everyone’s financial situation is different. For a significantly less cost than traditional financial advisors, you can receive a customized strategy just for your specific situation here!
Reaching FIRE doesn’t happen overnight.
It’s time to take some simple but powerful action. Being consistent with discipline is what it takes. Simple but not necessarily easy. So…
Surround yourself with the right people.
This may mean having to cut ties with those who just never seem to bring out the best in you. This may also mean to work with financial professionals who can help you reach your fullest potential.
Wealth + Wellness = Wealthness
Wealth and wellness mean different things to different people. For some, wealth means financial abundance. For others, it could mean owning a lot of luxury goods.
When it comes to defining wellness, for some, it means being in good health. It could also include having meaningful relationships.
Wealth beyond FIRE.
When it comes to increasing your wealthness, it’s all about creating positive energy flow. Positive energy flow can be in the form of financial gains, health, meaningful relationships, hidden opportunities, priceless experiences, and so forth.
But increasing your wealthness doesn’t just happen overnight. It’s a lifelong practice. With small but consistent steps in raising your vibrations, various forms of wealthness can flow into your life.
Enjoy activities that are in alignment with how you want to feel when you achieve your money goal.
The key to manifest what you want is to be on the vibrational frequency of having already achieved it. Our emotions help to energetically speed up our manifestation. So ask yourself how you want to feel when you achieve your goal.
Continue taking small and consistent steps to raise your vibrations to align your frequency accordingly. When we raise our vibrational frequency closer in alignment with what we are trying to achieve, we are better able to attract who and what we need for our highest good.
It’s OK to not be financially on track all day every day.
We all fall in and out of alignment throughout life. It doesn’t mean you have to go on an “Eat, Pray, Love” journey. Remember, the journey to achieving any form of wealthness is more fulfilling than having achieved it.
After all, life is about the journey, not the destination!
When we view life as an experiment, we are able to connect with our inner child. In turn, we are able to increase positive energy flow. Be willing to experiment with different activities to help you build wealthness.
Get FIRE'd up about FIRE!