I am going to answer the ONE question that I get asked ALL THE TIME as a financial advisor! What is financial freedom exactly? Some people call it retiring early. Others call it being a multi-millionaire! Most people shoot for a financial goal without actually understanding what and where this goal is.

I explore the concept of FIRE: Financial Independent Retire Early. If you want to achieve FIRE, do you know how much you need to retire early? Because the best time to start saving is YESTERDAY!

Show notes

  • What is financial freedom?
  • How much do you need to save to be financially free?
  • Most people shoot for a financial goal without actually understanding what and where this goal is.
  • The simple and general rule of thumb to calculate what you need to save:
    • Where do you live?
    • Take your monthly expenses x 300
    • Meditate on the number you need
    • Work out how you are going to save more of your money!
  • The rule of thumb helps you point out your direction of where you are currently going.
  • Your income and savings must beat inflation and the rate at which you spend.
  • When you know the value, you are able to readjust your thinking.
  • Your reticular activating system starts looking for ways to find and create money.
  • We need TIME to make our money grow and maximise interest – free money!
  • It is realistically impossible to just save money for retirement. You have to INVEST.
  • The reality is almost none of us have enough money to retire. Only 6% of the population will be able to keep their standard of living in retirement.
  • The best time to start saving is YESTERDAY!

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