Downsize
According to Jeremy Jacobson and Winnie Tseng, the writers behind the personal finance blog Gocurrycracker.com., were in their 30s when they decided to play with FIRE (Financial Independence, Retire Early). The couple sold their house and car, moved to a small apartment and started paying more attention to their finances. This move allowed them to save 70 percent of their income or more for ten years and say goodbye to their 9 to 5 jobs while still in their 30s.
Downsizing does have its benefits but also its traps. On that note, check out Downsizing Your Home? Stay Away From These 8 Crucial Mistakes.
Learn to appreciate a frugal lifestyle
Frugality is definitely underrated when it comes to how much it can contribute to your happiness. Many people believe being frugal is the same as being a cheapskate, but the two cannot be more different. Just because you chose to pay attention to your finances and stick to a budget doesn’t mean you’re a cheapskate. It just means you’re more resourceful with your money and learn to approach your finances in a smarter way and become more concerned with value rather than price.
Joe and Ali Olson, who worked as public-school teachers, decided to quit their jobs at 29 and enjoy life more. They are now in their 30s, traveling all over the world, to countries like Spain, Turkey and beyond, living on their savings and profits from their real estate investments and teaching their daughter to be happy with a frugal lifestyle.
Consider becoming a homeowner
Joe and Ali Olson managed to live on about $20,000 a year, invest in real estate and save the rest to turn their dream into reality. Just like in Mr. Money Mustache’s case, the Olsons’ strategy to invest in rental properties paid off and allowed them to become financially independent.
If you’re thinking of taking the same path, consider the one percent rule, a frequent benchmark for real estate investors. The rule says that the monthly rent should be more or equal to one percent of the final price of an investment property.
Make sure you also check out 24 Cities Where Your Social Security Can Pay the Rent.
