The reality is that we are all running two types of business when it comes to personal finance: (1) An Active Labour Business; (2) A Passive Investment Business.
In my wild and crazy journey in discovering the FIRE movement, I was inspired to create and stick to a budget, and I began tracking my net worth over time. By doing this over a year, I discovered something that was so obvious that I think many bloggers and personal finance gurus take for granted.
I call it the “Missing Link.” What I finally discovered was that your net worth is totally savings dependent. The fastest way to FI is to manage your budget well and use your savings to either purchase assets or pay down debt (preferably both).
I just did my second interview with Beau Humphreys on the Personal Finance Show about what it means to start a journey into financial independence and the insights I gained from connecting with the FIRE community. Take a listen.
Mr. Prairie FIRE does his first podcast. I share my story, talk about FIRE and how I plan to reach my goal of early retirement with Bruce Sellery of Moolala
It is important to understand that FI is not about retirement, though it can be. FI is reaching a point where you do not necessarily have to work to earn income to live. It is a form of freedom. But a freedom from what? What good is freedom without a reason for living? We all need a WHY to guide us on our journey.
Here is the thing. When I started this blog, it was and still is a work of passion. But the mistake I made was that I let my emotions and feelings in the moment drive my content. Instead, I should be thinking about sharing what I’ve learned and share it with you to help you along your own path to financial independence.