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If you have thought about being financially independent or enjoying a life of retirement, you probably heard of FIRE (Financial Independence, Retire Early). Just knowing or thinking about FIRE won’t bring you any closer to it, you need action.
Here are 7 habits of financially independent people you can emulate to get closer to your goal of FIRE.
#1 Start A Side Hustle
Ever dreamed of starting your own business or being your own boss? Starting a side hustle can be a great way to generate extra income and enjoy some personal fulfillment. While most people think of creating another source of income by hustling, there is a hustle-free alternative: investing.
Read Also: 5 Side Hustles That You Can Work From Home To Earn Additional Income
#2 Optimise Your Schedule
Starting a side hustle can be time-consuming. Optimising your schedule becomes even more important as you find ways to boost your income. Save time and effort by automating your finances.
#3 Set Good Financial Habits
However much we earn, poor financial habits can derail our progress to FIRE. Instead, get into a habit of timely bill payments and regular investments. Automate bill payments and set up regular investments and take advantage of dollar-cost averaging.
#4 Pay Your Future Self First
Instead of saving what’s left over after you pay off your bills, credit cards and other expenses, set aside your savings first when you receive your monthly salary.
#5 Track Your Spending
One way to identify problem areas in your spending is by tracking your expenses. By reviewing your purchases, you can see if it is the bubble tea addiction or reliance on food delivery that is causing the overspending and whether you can cut down on these areas.
#6 Maintain Good Cash Flow And An Emergency Fund
Having an emergency fund is important for financial security. As a rule of thumb, keep enough cash savings for about 6 months of expenses for emergencies.
#7 Make Your Every Dollar Work
Investing is the key to FIRE. By allowing your investments to compound and grow over time, you can eventually build up a sum large enough to generate enough passive income to cover your expenses.
Start Investing With SNACK Investment
Getting started is often the hardest. With a product like the SNACK Investment, you can start small with premium amounts of $1 to $100 a week, depending on your preference.
SNACK Investment is a micro insurance-linked policy (ILP):
- 100% of the premiums paid will be used to purchase units of the sub-fund which is currently the Asian Income Fund. More choices in sub-funds would be added in the future.
- Accompanying protection benefit for Accidental Death coverage which is 105% of net premiums paid.
- Full flexibility to withdraw, adjust, stop and resume your investment any time, and without any fees.
- Option to either Auto-Invest or embed investing to your lifestyle activities.
If you are interested in SNACK Investment, sign up here!
From now to 26 December 2021, enjoy their XMAS Promotion and get **1-for-1 with every dollar you invest (up to $80). All new users receive complimentary *$30 investment credits when you start with SNACK Investment.
Terms & Conditions Apply:
*Welcome Promotion: https://dollarsandsensesg.link/WelcomePromoTnC
**XMAS Promotion: https://dollarsandsensesg.link/XmasPromoTnC
