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Home Market Research Markets

Your Money Guide to Financial Independence

by TheAdviserMagazine
7 months ago
in Markets
Reading Time: 10 mins read
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Your Money Guide to Financial Independence
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In This Article

Finances can be like New Year’s resolutions; we have the best of intentions but then get lost in how to actually achieve our goals. I know when I am unsure of where to start, a concise list of next steps can truly help. Get a plan together and take action on your finances:

Start your small emergency fund: We like to say three to six months, but if you are just starting out, one month of leeway is a huge milestone. You can always revisit this step later.

Get the free money: Contribute to your 401(k)/TSP, at least up to your employer match.

Make HSA contributions: These reduce your taxable income and grow tax-free should you decide to invest it. It is a gold mine for early retirement!

High-interest debt: Use the “avalanche” or “snowball” method to wipe out your debt.

Track your spending: I am old school, and I find an Excel spreadsheet with three months of past expenses that can serve as a great average for your spending. A tracking app works great, too!

Use your individual retirement account (IRA): Contribute to Roth or traditional IRAs based on your individual needs. 

Invest in a brokerage account: Investing in a brokerage account is necessary to access cash before retirement.

Increase your income: Invest in real estate, pick up extra hours, or start a side hustle.

Be generous: Don’t forget that you can help others on their path to FIRE. Start a 529 or a donor-advised fund (DAF).

If you aren’t sure what to prioritize, I like to make sure that any account that has a year-end or tax-filing deadline are maxed out before it’s too late. Remember that any of these actions will get you closer to your FIRE goal! 

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Amberly Grant

Real Estate Investor

Amberly currently owns seven doors, which are a mix of LTRs, MTRs, primary residence, and a property that her family l…Read More

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