Asking on behalf of a friend, how to get to FIRE starting at 30 or even 40 ? - Seedly
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Asked by HC Tang

Asked 6d ago

Asking on behalf of a friend, how to get to FIRE starting at 30 or even 40 ?

Happens to read this, share with all: https://thewokesalaryman.com/2019/12/16/over-30-its-not-too-late-to-fight-your-way-out-of-wage-slavery/

Any more practical way to start and earn scalable recurring side income ?

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John Smiths
John Smiths, Tax at Local bank in Singapore
Level 5. Genius
Answered 1d ago

That's a good article to go on and it's basically about earning more active income (such as salary and side income) and passive income (such as dividend and rent) or start earning business income. On top of that, cut your expenses too.

Ask your friend to first choose the route that works best for him and commit to it. Otherwise, it's easy to get lost in your approach and end up in a worse position.

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HC Tang
HC Tang

17h ago

Great. Thank you. I'll definitely share with him šŸ˜€

Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit. Here is a guide to help you: https://www.blog.pzl.sg/understanding-your-personal-cash-flow/

Once your cashflow analysis has been completed, perform a detailed calculation on the amount of money that you need from the age you reach FIRE till the time you do not need the money anymore, e.g. life expectancy + delta.

After we have a complete figure, it is time to work backwards to find out how much money we need today.

To do so, create a budget that is capable of helping you to plan for the future. The best way to do this is via automation and this is how I do mine: https://www.blog.pzl.sg/how-to-create-a-monthly-budget/

While a budget helps you to save and grow your money for your future, it is always nice to have a guaranteed source of passive income, e.g. annuity, or channels that provide similar guarantees in life.

Scalable side income requires time to build. Start early and let compounding effect do the work for you. For instance, annuity, royalty, ads can be pretty decent starters.

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HC Tang
HC Tang

5d ago

Thank You!
MJ
Mickey J
Level 2. Rookie
Answered 5d ago

I feel that the best way to get started is to build a plan that's tailored to you.

1) Know your expenses and optimise them, removing the ones that you don't need.

2) Give yourself a FIRE number. How much do you need to stop working, based on your expenses. A simple formula could be 25X your annual expenses, but factor in your personal milestones (e.g. getting married, having a kid, etc.)

3) Create a plan on how you intend to achieve your FIRE number and identify ways to accelerate it. Whether is it to rise up the corporate ladder faster, create other side incomes, etc.

Hope this helps.

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HC Tang
HC Tang

5d ago

Thank You!