FIRE: Do's and Don’ts of Financial Freedom by 30

But, for some, that number can be $50k a year while others won’t feel satisfied with half a million a year. This is the moment where you need to break, as early as possible, and decide what does happiness means to you? What would make you happy?

Generally, to achieve FIRE you will need to follow a few steps:

1. Set goals

2. Formulate contingencies

3. Don’t ever despair

Freedom is not won once, it is maintained.

FIRE: Ambition to Be Happy with Less

Some will see the term FIRE be used frequently in this context, as it stands for Financial Independence, Retire Early. It is used for those who wish to consolidate their finances on time and have a liberated future.

The goal here is to form independent income streams that will support your life even if you quit your job. It is perfectly okay for that to be a modest life where you can live peacefully and work where you want without thinking about survival.

What to Do?

Regretfully, the biggest difference between the do’s and the don’ts is that the former need to be constant while the latter can destroy your plans in a very short time. Practicing mindfulness and being honest with yourself will be your primary tools for the rest of your life.

#1 Develop Short-term and Long-term Strategies

Completely doable, but you don’t start from filling our arenas. Rather, start with something simple, learn some cords, try to play some songs, have some fun. Make a short-term goal that you know is within your reach and is aligned with your long-term desires.

Getting to your goal will need a series of short-term goals that you will accomplish year after year. Finally, the last leg will be the thing you have dreamed about for maybe over a decade.

#2 Play to Your Strengths

Maybe you want to be an international casino champion, but unless you count cards in live blackjack, which would be almost mathematically impossible, that shouldn’t be your prime focus.

Staying in your hometown might not sound glamorous, but it is better to be free in the middle of nowhere than to be a slave in the big city. Being free everywhere is optimal, but not always possible.

#3 Be Virtuous

Try to be as virtuous in your everyday life as you possibly can. Be kind to yourself and to others and be diligent about your work. This way you will ensure that your achievements are made on a steady foundation.

What NOT to Do?

In many ways, we are hard-coded to do some things that were proven evolutionary beneficial in the past. Regretfully, in today’s economy, they will bring you nothing but misery.

#1 Live for Fantasies and Self-delusions

Two are the most common, those being the delusion of self-grandeur and self-diminishment. You don’t need to be the best in the world and you are never the worst. You only need to do the best you can every time.

Don’t plan on being the hero of the world, simply try to do everything that you can.

#2 Live to Impress Others

Directly, this includes social signifiers like cars, homes, vacations, and similar things where you will spend money. Buy the car you like, for the purposes you need. Don’t buy anything just because someone else would think that you are cool.

If some people don’t want to be your friends because you don’t have money, you don’t want those people as friends in the first place.

#3 Indulge in Greed

Finally, the demon of greed will be on your tail for your entire carrier. Until you achieve freedom and learn that you don’t need what you don’t have you will be tortured by this nagging feeling that you should have more, more of everything, always.

Speculative investments may sound like a great idea, but they are also a great way to set yourself back years if not to square one. Make sure that you have contingencies in case of failure and that the reason why you think it is a good deal is rational.

But, even if that happens, readjust. FIRE by the age of 60, this time with experience.