Are you new to this blog or with the topic FI / RE (Financial Independence / Retire Early)? Then this is a good starting point. Mrs. FI / RE Ninja and I started this blog in early 2021. Through this blog, we share as much of our knowledge and experiences as possible regarding our journey to financial independence. Do you also want to become financially independent? Actually this is quite simple, just follow these three steps and you can achieve it. How fast? This depends on many different factors, but mainly yourself. In any case, these steps contribute to wealth accumulation.
Step 1: Save as much as possible
Adjust your lifestyle so that you don’t always want more, bigger and more luxury(should this be the case). Try to reverse it. How can you live as nicely as possible with less (luxury). Wees blij met wat je hebt en geef geen geld uit dat je niet hebt. Avoid unnecessary / undesirable debts and live frugally. By saving you have money left, which you can use to make money again. The great thing about reducing your expenses is that it contributes double to your goal of becoming financially independent. You need less wealth. In principle, we assume 25 x your annual expenditure as required invested capital to be financially independent. In addition, saving ensures that you have more money to invest.
Do you want to know more about saving? Read our articles here: Save
Step 2: Increase your income
Be creative and try to increase your income in different ways. You can then invest everything that you earn more, with the aim of growing your wealth. Examples include negotiating your salary, a side hustle, selling unnecessary items, etc …
Do you want to know more about how you can increase your income? Read our articles here: Income
Step 3: Invest
Invest anything that you have left over on top of your reserves. Invest the majority in index funds (such as VWRL and NT World / EM) and only a small percentage in more risky investments, such as self-selected stocks, cryptos and peer-to-peer loans. Since we invest for the long term, it is important that we do not let ourselves be led by emotion. Do not sell your shares when the market goes down, but see this as an opportunity to invest more for less money. You only make a real loss when you sell. Historically, the market has always ended up higher.
Do you want to know more about investing? Lees onze artikelen hier: Investeren
The above three steps ensure that you are well on your way to financial independence, but what this means, how much money you need for this, how you map your annual costs, how you keep track of your progress, etc. is an important part of your strategy. In the future we will publish a series of articles that will answer this. As soon as these are ready, we will make them accessible from the menu and this article.
We will share our portfolio and investment strategy with you every quarter. If you have any suggestions or wishes for this, please let us know.