Savings rate has been one of the most influential financial concepts for us. In the past 5 years, we’ve more than doubled our savings rate. This has given us more freedom and confidence as we shift our long-term plans.
Even though 2020 was a challenging year, we had a strong financial year. We provide updates on our key financial metrics in 2020. We also learned several key lessons that will help us create our ideal life while pursuing financial independence.
Saving more money isn’t just about expediting your journey to FI, but enhancing it. It can provide you the opportunity to buy more freedom now by designing your life. Focusing on the big three expense categories can help you accomplish that without going too far to the extreme.
Our plan to reach FI is not to deprive ourselves to build up a nest egg so that we can relax later. And to be clear, our journey to financial independence is not about early retirement. We are not looking to not work or sit on a beach for 50-60 years. Instead, this journey is about lifestyle design, freedom, flexibility and security. We plan to take very intentional actions so that we can adjust our lifestyle along the way. Here’s a detailed look at what our plan currently looks like.
Despite what conventional wisdom may lead you to believe, there are many paths to retirement. Most people follow the same two-phase path to retirement. Instead, the Slow FI approach can help you make small changes over time.