Wouldn’t it be great to be financially free?

I remember reading Tony Robbin’s Money Master The Game and the book goes through a process where you calculate exactly how much you need to achieve financial freedom.

What was crazy was that people are often a lot closer than they think. Particularly if you have some savings, your own home, a pension – so it’s definitely worth getting this book and going through it for yourself! 

Whatever position you are in, there are ways we can all speed up our own paths to financial independence. A popular movement is the FIRE movement – Financial Independence, Retire early. Personally, I am more focused on the former, and would love to be able to live life on my terms.

Keep reading, in this blog post I’ll be sharing 4 ways to speed up your own path to financial independence, cutting down 5 chapters from the book to one blog post. Although, I’d still recommend buying the book!

Save More (And Invest The Difference)

Saving is a skill, and a hard skill to master.

How many people do you hear saying ‘they have no money’ or ‘can’t wait until payday’. Whilst they may be exaggerating, in our consumer-driven society people have a tendency to spend spend spend, rather than save save save.

 There are loads of ways you can save more money each month:

  • Cancel unused subscriptions
  • Renegotiate bills
  • Eat out less
  • Stop impulse purchases
  • And so on!

This is where a budget can really help. Not only do you know exactly where your money is going to give you more clarity on your spending, but if you set a goal of saving say £100, per month, you’ll be surprised how you naturally cut back on other areas of spending to meet your goal. 

Whilst small expenses don’t seem like much, they can really build up. If you can even cut back on a few £’s a day, over the course of the year this could be hundreds of £’s saved. 

 Of course, it’s better to focus on cutting back on larger expenses. Can you reduce your mortgage or your rent? Your phone bill? You other housing bills? Your travel expenses? If you’re able to renegotiate any of these and reduce them then thats a great result.

What is most important is to keep your expenses low as your income increases!

Do you really want a house with another bedroom, and a brand new mortgage? I’d rather retire 10 years earlier personally!

The Maths

If you manage to save an extra £100 a month, at a conservative 7% return, after 30 years you would have £122,

Wouldn’t it be great to be financially free?

I remember reading Tony Robbin’s Money Master The Game and the book goes through a process where you calculate exactly how much you need to achieve financial freedom.

What was crazy was that people are often a lot closer than they think. Particularly if you have some savings, your own home, a pension – so it’s definitely worth getting this book and going through it for yourself! 

Whatever position you are in, there are ways we can all speed up our own paths to financial independence. A popular movement is the FIRE movement – Financial Independence, Retire early. Personally, I am more focused on the former, and would love to be able to live life on my terms.

Keep reading, in this blog post I’ll be sharing 4 ways to speed up your own path to financial independence, cutting down 5 chapters from the book to one blog post. Although, I’d still recommend buying the book!

Save More (And Invest The Difference)

Saving is a skill, and a hard skill to master.

How many people do you hear saying ‘they have no money’ or ‘can’t wait until payday’. Whilst they may be exaggerating, in our consumer-driven society people have a tendency to spend spend spend, rather than save save save.

 There are loads of ways you can save more money each month:

  • Cancel unused subscriptions
  • Renegotiate bills
  • Eat out less
  • Stop impulse purchases
  • And so on!

This is where a budget can really help. Not only do you know exactly where your money is going to give you more clarity on your spending, but if you set a goal of saving say £100, per month, you’ll be surprised how you naturally cut back on other areas of spending to meet your goal. 

Whilst small expenses don’t seem like much, they can really build up. If you can even cut back on a few £’s a day, over the course of the year this could be hundreds of £’s saved. 

 Of course, it’s better to focus on cutting back on larger expenses. Can you reduce your mortgage or your rent? Your phone bill? You other housing bills? Your travel expenses? If you’re able to renegotiate any of these and reduce them then thats a great result.

What is most important is to keep your expenses low as your income increases!

Do you really want a house with another bedroom, and a brand new mortgage? I’d rather retire 10 years earlier personally!

The Maths

If you manage to save an extra £100 a month, at a conservative 7% return, after 30 years you would have £122,709!

Wouldn’t it be great to be financially free?

I remember reading Tony Robbin’s Money Master The Game and the book goes through a process where you calculate exactly how much you need to achieve financial freedom.

What was crazy was that people are often a lot closer than they think. Particularly if you have some savings, your own home, a pension – so it’s definitely worth getting this book and going through it for yourself!

 

Whatever position you are in, there are ways we can all speed up our own paths to financial independence. A popular movement is the FIRE movement – Financial Independence, Retire early. Personally, I am more focused on the former, and would love to be able to live life on my terms.

 

Keep reading, in this blog post I’ll be sharing 4 ways to speed up your own path to financial independence, cutting down 5 chapters from the book to one blog post. Although, I’d still recommend buying the book!

 

Save More (And Invest The Difference)

Saving is a skill, and a hard skill to master.

 

How many people do you hear saying ‘they have no money’ or ‘can’t wait until payday’. Whilst they may be exaggerating, in our consumer-driven society people have a tendency to spend spend spend, rather than save save save.

 

There are loads of ways you can save more money each month:

  • Cancel unused subscriptions
  • Renegotiate bills
  • Eat out less
  • Stop impulse purchases
  • And so on!

 

This is where a budget can really help. Not only do you know exactly where your money is going to give you more clarity on your spending, but if you set a goal of saving say £100, per month, you’ll be surprised how you naturally cut back on other areas of spending to meet your goal.

 

Whilst small expenses don’t seem like much, they can really build up. If you can even cut back on a few £’s a day, over the course of the year this could be hundreds of £’s saved. 

 

Of course, it’s better to focus on cutting back on larger expenses. Can you reduce your mortgage or your rent? Your phone bill? You other housing bills? Your travel expenses? If you’re able to renegotiate any of these and reduce them then thats a great result.

 

What is most important is to keep your expenses low as your income increases!

 

Do you really want a house with another bedroom, and a brand new mortgage? I’d rather retire 10 years earlier personally!

 

The Maths

If you manage to save an extra £100 a month, at a conservative 7% return, after 30 years you would have £122,709!

financial freedom
financial freedom

More graphics like this on our Instagram

Earn More (And Invest The Difference)

Whilst it is a dream to escape the rat race, the fact is the majority of us will be apart of it for some of our life. Unless you’ve become a very young entrepreneur, or able to work for a family business, the chances are you’ll be commuting, working 9-5, and part of the ‘rat race’.

So, there are two things that come to mind that we can all do:

  • Get a promotion at work
  • Start a side hustle

Firstly, it’s important to get a job that you like. Even if you’re currently in a job you don’t enjoy, try and have a plan where you’ll leave that job at some point and find another. If you’re in a role you enjoy, you’re much more likely to perform well and get that promotion.

Nevertheless, even if you’re in a job that you don’t enjoy, remember that this job is temporary and do your best to move up the ranks!

Although we are ‘trading our time for money’, we need to increase our income as that means we can invest more!

Secondly, another thing we can do is to start a side hustle. These can come in all shapes and sizes, from starting an e-commerce store, to trying to flip items on ebay, to starting up some social media accounts.

Personally, this – MakingMoneySimple – is my side hustle! 

The idea of a side hustle is that it is something you enjoy and are passionate about. Imagine if you could turn your passion – personal finance, cooking, football, knitting, dancing – into an income stream? That’s one goal of mine!

You could then go one step further, if you’re very lucky, and make that side hustle your full time job if you’re able to make enough money from it.

The Maths

If you manage to earn an extra £500 a month, at a conservative 7% return, after 30 years you would have £613,544!

Reduce Fees (And Invest The Difference)

Think of fees like a hole in your ship. Whilst the hole won’t immediately bring the ship own, over time it will drain the ship slowly. Just like investing fees!

I’m big on reducing fees. It’s much easier to illustrate their impact with a graph:

Earn More (And Invest The Difference)

Whilst it is a dream to escape the rat race, the fact is the majority of us will be apart of it for some of our life. Unless you’ve become a very young entrepreneur, or able to work for a family business, the chances are you’ll be commuting, working 9-5, and part of the ‘rat race’.

So, there are two things that come to mind that we can all do:

  • Get a promotion at work
  • Start a side hustle

Firstly, it’s important to get a job that you like. Even if you’re currently in a job you don’t enjoy, try and have a plan where you’ll leave that job at some point and find another. If you’re in a role you enjoy, you’re much more likely to perform well and get that promotion.

Nevertheless, even if you’re in a job that you don’t enjoy, remember that this job is temporary and do your best to move up the ranks!

Although we are ‘trading our time for money’, we need to increase our income as that means we can invest more!

Secondly, another thing we can do is to start a side hustle. These can come in all shapes and sizes, from starting an e-commerce store, to trying to flip items on ebay, to starting up some social media accounts.

Personally, this – MakingMoneySimple – is my side hustle! 

The idea of a side hustle is that it is something you enjoy and are passionate about. Imagine if you could turn your passion – personal finance, cooking, football, knitting, dancing – into an income stream? That’s one goal of mine!

You could then go one step further, if you’re very lucky, and make that side hustle your full time job if you’re able to make enough money from it.

The Maths

If you manage to earn an extra £500 a month, at a conservative 7% return, after 30 years you would have £613,544!

Reduce Fees (And Invest The Difference)

Think of fees like a hole in your ship. Whilst the hole won’t immediately bring the ship own, over time it will drain the ship slowly. Just like investing fees!

I’m big on reducing fees. It’s much easier to illustrate their impact with a graph:

compound
compound

Source: which.co.uk 

And this graph is only £1,000 over 10 years. Imagine £100,000 over 30 years?!

Reducing your fees will literally save you tens of thousands of pounds!

It’s important to point out that passive investing provides better returns that active investing. This was one of my first ever blog posts! In short though, passive investments track the market, incur less trading fees, and so we have more money in our pocket.

This leads on nicely as to why I am a huge advocate of low-cost index funds, which is a passive investment approach. 

With a global, low-cost, index fund we are able to get global diversification for a very low fee.

The Maths

Let’s say you invest £100 per month. You was paying 1% fees and now you’ve reduced that down to 0.25% (average fee for a global index fund).

Through this 0.75% saving, at a conservative 7% return (6.85% net of the 0.25% fee), after 30 years you would have £116,799! As opposed to £100,953.

That’s a saving of £16k by reducing fees!

Source: which.co.uk 

And this graph is only £1,000 over 10 years. Imagine £100,000 over 30 years?!

Reducing your fees will literally save you tens of thousands of pounds!

It’s important to point out that passive investing provides better returns that active investing. This was one of my first ever blog posts! In short though, passive investments track the market, incur less trading fees, and so we have more money in our pocket.

This leads on nicely as to why I am a huge advocate of low-cost index funds, which is a passive investment approach. 

With a global, low-cost, index fund we are able to get global diversification for a very low fee.

The Maths

Let’s say you invest £100 per month. You was paying 1% fees and now you’ve reduced that down to 0.25% (average fee for a global index fund).

Through this 0.75% saving, at a conservative 7% return (6.85% net of the 0.25% fee), after 30 years you would have £116,799! As opposed to £100,953.

That’s a saving of £16k by reducing fees!

Making Money Simple Newsletter

Receive the latest Personal Finance, Investing and Property information straight to your inbox!

We won’t spam you whatsoever, and will never share your details.

Making Money Simple Newsletter

Receive the latest Personal Finance, Investing and Property information straight to your inbox!

We won’t spam you whatsoever, and will never share your details.

Reduce Taxes (And Invest The Difference)

This section is very short and very easy.

Invest inside of an Individual Savings Account, or ISA!

We are able to contribute £20,000 per year, and all the money invested will grow tax-free. There’s really not much more to say, of course there are a range of taxes and a range of investments.

But, when it comes to investing in the stock market, make every investment inside of an ISA and you’ll save thousands of £’s in taxes.

Invest The Difference?

A common theme with the 4 above strategies has been to ‘invest the difference

Why?

Because the more you invest, the more you will speed up your path to financial independence. 

It’s no good putting in all of this work, saving and earning more, reducing fees and taxes, only to have that extra money sitting in a bank account losing out to inflation, or spending it on materialistic things you don’t need and don’t add much to your life.

If you start looking at money, even a few £’s, compounded over the long term it will really open your eyes as to how even the littlest actions – saving £50 extra a month or earning an extra £50, and then investing that money – can lead to huge long term gains!

Reduce Taxes (And Invest The Difference)

This section is very short and very easy.

Invest inside of an Individual Savings Account, or ISA!

We are able to contribute £20,000 per year, and all the money invested will grow tax-free. There’s really not much more to say, of course there are a range of taxes and a range of investments.

But, when it comes to investing in the stock market, make every investment inside of an ISA and you’ll save thousands of £’s in taxes.

Invest The Difference?

A common theme with the 4 above strategies has been to ‘invest the difference

Why?

Because the more you invest, the more you will speed up your path to financial independence. 

It’s no good putting in all of this work, saving and earning more, reducing fees and taxes, only to have that extra money sitting in a bank account losing out to inflation, or spending it on materialistic things you don’t need and don’t add much to your life.

If you start looking at money, even a few £’s, compounded over the long term it will really open your eyes as to how even the littlest actions – saving £50 extra a month or earning an extra £50, and then investing that money – can lead to huge long term gains!

0 CommentsClose Comments

Leave a comment

Newsletter Subscribe

Get the Latest Posts & Articles in Your Email

We Promise Not to Send Spam:)