Low-Income and Late F.I.R.E.

... a guest post ...

Today we get to read a guest post from someone who’s looking at F.I.R.E. from a different perspective than many of us. There are a lot of good lessons buried in this for anyone from any background. It just goes to show you the basics of being smart with money cross every human boundary we encounter.

Sitting in my reading room, sipping on a cup of Pu-erh, I was ruminating on the whole idea of the F.I.R.E. movement. For myself, halftime has started… I find myself halfway through the third quarter and deep in my own end zone … to say I got started late, is a definite understatement…

That being said, the R.E. (Retire Early) part didn’t really apply to me, so I just decided to work on the F.I. (financial independence) part…

Thanks to a dear friend who introduced me to the F.I.R.E ideas, I’ve made significant changes in how I save and invest… I am grateful for this, as it will be helpful as I approach retirement… which isn’t very far off… let’s just say I’m heading into the last turn.

But there are days when I sit and think, is it all worth it… especially at my age…? I work 40-50 hours a week, thoroughly enjoy what I do, and don’t really want to retire… but just…slow my roll, as I like to say… that being said, the idea of FI is, yes, very worth it.

The one aspect in all of it for someone in my position that, for the most part, I don’t see or hear addressed is how you reach FI (financial independence) when …

• you make less than 50k per year before taxes

• you have not understood how to make your money work for you’re until you less than five years from retirement age

• And now that you do, is FI even possible? And if so, how can you go about it?

As my friend said, and I agree… I wish I’d known about this information in high school… instead, I’m looking at what’s in front of me and imagining a future of asking, “Would you like fries with that”…

All kidding aside, I find myself pondering the answers to these questions, and I’d like to share with you some of how I’ve been approaching it so far…

If you are on the low end of the tax bracket like me, are closing in on retirement, and just woke up to what being financially independent looks like (you know, that deer in the headlights look)…Here are a few ideas to consider…

• Make and keep a budget

  • I know, blah, blah, blah… just do it… you won’t regret it. You do want to enjoy retirement somewhat… right?

• Pay off Debt

  • if you have a lot, don’t give up. Make a doable plan for you to stay at it and pay it off.

• Create an Emergency Fund

  • If you have savings, put whatever amount you can, even if it’s five bucks each month, just get in that habit. Shoot for 3-6 months living expenses.

• Open a High Yield Savings Account

  • If you have that money in a bank savings earning an insultingly low amount of interest… open a High Yield Savings and earn 3-4% on that hard-earned money.

• Retirement Account

  • If you have a retirement plan offered through your employer and are able to start one for yourself. Take the Roth IRA if that option is available.

  • Most employers offer some sort of matching money up to a max percentage of the amount that you contribute… do that at a minimum if you can.

• Cut Unnecessary Expenses

  • Sincerely consider ways, especially if your budget is tight or you're paying off debt, that you can save more money, like canceling subscriptions, memberships, etc.

Finally, it’s up to you what you do. Personally, I’ve found it rewarding and fun. I regularly look for ways to challenge, motivate, and encourage myself to keep at it, and I enjoy finding new ways to make my little bit of money work for me instead of against me.

So, keep at it, don’t get discouraged and even if we work PT in retirement, we can enjoy and be content with what we have.

““Do not work for the food which perishes, but for the food which endures to eternal life, which the Son of Man will give to you, for on Him the Father, God, set His seal.””
- (John 6:27 LSB)

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