What’s all the hype about Financial Independence?

If you are a stranger to the #DebtFreeCommunity, you have come to the right place. When we discovered the #DebtFreeCommunity, it was like heaven. You have all these like minded folks who are all about paying off their debt and they are adamant about doing so. They are all open and candid about their personal money journey, and they inspire other people who are looking to tackle all their debt with tremendous force. You would think this community are all family and super close friends the way everyone is hypin’ everyone up. They are all so supportive of each other and they all lean on one another to achieve a goal. It’s real cool to see. The Debt Free Community is striving to achieve financial independence. But, what is all the hype of financial independence? Why is it a goal to many to accomplish it?

We immediately began following Instagram accounts that have similar goals and interests as us, and let us tell you, it was so refreshing to see people that are single mamas, single dads, young and older couples, 18 year old college students, basically all kinds of people who have had that “I’m sick and tired moment”.

It’s so encouraging to see normal people who are in a tremendous of debt, that have little to decent income, overcome their large debt being shackled to their feet.

The Debt Free Community, is really like a true community. The true definition of everyone coming together to reach a common goal, the goal of being “debt free” and to reach financial freedom.

How bad do you want your financial freedom?

We ran across this single mom of two in the debt free community, who made a living of $35,000 a year, tackle her debt of close to $64,000 (in student and car loans) in 3 years because she was so tired of living paycheck to paycheck. This motivated mama buckled down and cut down her expenses tremendously, stuck to a strict budget, and began putting in more hours at work, and side hustled by driving Post Mates while being a super mommy to two kids. Now, that’s some hard work and dedication to tacklin’ that debt! She wanted is so bad! She is now inspiring other single mamas to do the same thing. Watching her be so transparent, raw, and open with her money journey was very motivating.

She wanted to do this for her kids and for herself. She was influenced, just like us, by the #DebtFreeCommunity to rise and overcome debt. What was her main drive? She believed that having no debt brought her financial freedom and stability for her family.

Again, what’s all the hype about financial independence? Well, here is where financial freedom and independence comes in.

Imagine a life of financial independence

What's all the hype about Financial Independence?

Just sit back and think on this for a moment. Close your eyes and imagine what financial freedom can do for your mind, body and soul. Think about what you can do with your time, money, relationships and all around health.

Just thinking about what financial freedom can provide is beyond what we can imagine. It is so liberating to know that financial freedom can be achievable, if you put in the blood, sweat, and the tears. Like we always say, nothing good comes easy, and if it did, everybody would be doing it. The question to ask yourself, how bad do you want it?

Let’s get into what financial independence actually is. Financial independence means “the status of having enough income to pay one’s living expenses for the rest of one’s life without having to be employed or dependent on others.”

According to Paula Pant from “Afford Anything“, who is a huge advocate for the financial independence movement stated, “it’s not about sipping margaritas on a beach. It’s about having the freedom to use your time in whatever way you want” and we couldn’t agree more!

What comes to your mind when you think of financial independence? In our minds, we think

  • No debt
  • Not relying on a job or other people in a time of need
  • The ability to do what you want, when you want
  • No stress
  • The ability to give more willingly and freely

The list can go on and on…..

Now, there’s this other community that people may or may not know about, and that community is called the #FIRECommunity.

What does FIRE mean?

F.I.R.E is short for “Financial Independence, Retire Early” and we are also a huge fan of this community. Everyone in this community is all about keeping a minimalist life style, while building their wealth through saving and investing. The FIRE community is made up of people who are so ambitious to save 50-70% of their income and to invest that income into some low cost index funds to achieve this do-able goal of financial independence and retiring early.

We’re following the #FIREcommunity on our Instagram page and this community is making us so pumped and motivated to achieve FIRE status! We’ve seen some folks retire early as 25 years old! Isn’t that amazing?! It’s so amazing seeing this FIRE community achieve this huge accomplishment.

When you think of the average retiree now in days, they are around 65 years old. To us, we want to be able to enjoy the money we worked so hard to build at a younger age. Now, we’re not saying that retiring at 65 is a bad idea, we’re just saying that retiring at that age is not the required rules for this thing we call “life”.

Why is achieving FIRE so desirable

Think about it, you will have the freedom to go after what you want, on your terms. Also, just imagine the upper hand you can have at work when you technically don’t NEED to work, you just choose to. At any point in time, you can say “well, I had enough of this, thank you and bye bye” (LOL). In other words, you have choices and alternatives.

“FIRE allows people to choose how they want to spend their time rather than be forced to spend their time at work.”

Kristy Shen

Achieving FIRE is a choice and it is A LOT of hard work. It takes determination and grit and if you’re up for this task of achieving FIRE, head over to ChooseFI for the “Beginner’s Guide to Reaching Financial Independence“.

How can I become Financial Independent?

Here are some tips that we suggest on achieving FIRE.

1.) Find your “why” on why you want to achieve financial independence

What’s the reason why you want it so bad? Is it because you want to travel, or spend more time with your family. Or how about to go after what you want, like your dream business that you’ve been trying to do for years. What’s your reason to achieve FIRE.

2.) Have a modest and minimalist life style

Keep your lifestyle to a minimum. If you need to cut expenses like your grocery bill, cable bill, or housing expenses, etc. to reach your goal of simplistic living, we are all for it. The goal is to always have a budget and to track your expenses.

3.) Live on less than you make and invest the rest

According to the FIRE movement, this community of people invest half their income or more into low cost index funds regardless if the stock market is up or down. They stay invested over the long term and they never pull money out when it is a down market.

4.) Avoid debt at all costs

What’s the point of working so hard and building your wealth to pay the debt of the past? Getting rid of debt is an important step of achieving financial independence.

5.) Stop trying to keep up with the Jones’s

What’s the main reason why people are in debt in the first place? To impress other people. They buy the fancy cars and big houses because their neighbors or friends did. This is how we look at it, the fancy car and a modest car will still get you from point A to point B. No one is checkin’ for the symbol of the car when getting to their destination. And that big, dream house can provide the same shelter as a modest house from the rain.

6.) Save, Save, Save

Pay yourself first always and never save what is left over. Make paying yourself a priority. This allows you to get in the habit of automatic saving. Investing in your 401k is a great start on achieving FIRE and it’s a sure way to build your wealth.

7.) Have passive income streams

Have assets that are generating income. The FIRE community are building wealth through investing through real estate, having side hustles or businesses, investing in the stock market, or anything that is of value bringing income. Focus on buying assets rather than liabilities that are meaningless.

Wrapping up

So, go after what you want! Achieving FIRE is definitely achievable, and it has been done many times by different people, by all walks of life. Remember, keep investing, live on less than you make, and save, save, save. You can do anything that you put your mind to! Your mindset is what will make the difference of achieving great and wonderful things. You got this honey 🙂

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