If you are doing it right, investing should be very simple.
This blog series aims to help you tackle the fear of investing, move past it, and take action to start your FIRE journey in as little as two weeks!
Last week, in the first post of this series, the Introduction, we defined FIRE, discussed key FIRE concepts, as well as why a FIRE lifestyle can be challenging, why it can be difficult to get started investing, and why you need to start investing now.
If you have not yet read the Introduction post, I highly suggest you take a moment to read it now. Then come back here and we will continue. Don’t worry, we will wait for you!
So, you know what FIRE is, you know you need to invest, and you need to get started now.
For absolute beginners to investing, this 2nd post in the series will cover Step 1 of the 4 Steps to Start Your FIRE Journey…
Step 1: Think
- Objectives: Identify your personal money challenges and set a few high-level goals
- Time: This step should take about an hour
Take a moment to think about what money means to you and what you want from it.
- What are your earliest memories of money?
- What did you learn about money from your immediate family?
- What kind of spender/saver are you? Are you frugal? Do you spend without thinking?
- What are your financial goals?… eliminate debt, reduce spending, get rid of the nagging “out of control” feeling, or become Financially Independent
There are no right or wrong answers. You are self-reflecting… learning about your personal relationship with money. Record your answers for later review.
I would encourage you to spend some quality time on this step but don’t get stuck here for days. While this step is important, if we don’t move through it to the other steps, then you might never take action to start investing… which is the whole point.
You can always come back. Self-reflection about money and your values will change over time. Honestly, you should be doing this type of self-reflection early in your investing life and then at regular intervals in your life. You decide what that looks like.
Extra Credit: If this step resonates with you, I suggest you read Your Money Or Your Life by Vicki Robin. This book is a true classic. Vicki is one of the founders of the FI movement.
Step 1 is a brief step in your journey.
In the next post, we will continue with Step 2: Learn where I will give you everything you need to get started investing. Then, in Step 3: Track, we will track your expenses and other important money numbers. Finally, in Step 4: Invest, will include tools and step-by-step help to get started investing.
- Continue Reading this blog series with the next post titled, Start Your FIRE Journey – Step 2: Learn
Summary of FI Resources:
- Think: Your Money or Your Life, Vicki Robin
- Debt: How to Get Out of Debt, Get Rich Slowly
- Budgeting/Spending/Emergency Fund:
- Podcasts & Blogs:
Questions, Comments, Feedback…
- Leave your questions and comments in the Comments section
- I am not an expert or a financial advisor but I’ve made enough mistakes over my decades of investing to know the basics of what to do and what not to do
- Let us know how we can best support your journey around:
- Getting Started Investing
- Financial Independence
- Retire Early, or
- Living Abroad
- We would love to hear from you
- I have a 100% response policy for my blog; I always respond to every comment on my blog
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Thanks for reading. If you haven’t already done so, commit to an investment strategy today! And please reach out if you need any help.