How to Reach FIRE Based on Your Income ($45K - $100K/Year)

Episode #568

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What does it mean to “win” financially in your income bracket? To us, the end goal is always FIRE (Financial Independence, Retire Early), and if you’re chasing financial freedom, this is the show for you. We’re breaking down the money moves you need to make based on your income bracket, going from $45,000 to $100,000 per year, and how to stretch your dollar the furthest so you can invest, save, and reach FIRE faster.

If you’re at the lower end of the income scale, we’ll give you time-tested methods to boost your income and use your time wisely so you can start stockpiling cash TODAY. If you have a high income, there’s still work to be done as you need to find the best way to keep the most of your income so you can use it to acquire wealth-building assets.

Regardless of how much money you make, you CAN achieve FIRE if you know the proper steps. The good news? We’re sharing those steps today, so stick around!

00:00 Intro
01:08 $45,000/Year Income
12:37 $75,000/Year Income
23:11 $100,000/Year Income
28:48 How Much for FIRE?

[crys]

This is a great episode. It’s very realistic in telling people if you want a 10 to 15 year timeline to FIRE, it takes more income. It just does. It’s an honest take. This is much better than the “anyone can do it, no matter the income”. And for those of us that can’t hit FIRE in that short of time, it’s not like we’ve failed. We’re still in a much better position than not trying at all.

[WaldronsSousas]

I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.

[thefiprofessor]

I started out my journey on $30k a year and ended at $100k. My wife has never earned over $30k. We used geoarbitrage to live “rich” lives while being really frugal. The reason for this is that in many countries, cheaper options aren’t that bad. We live in Japan. I own one of the cheapest condos in my area that still within a 10 minute walk to a train station. In the US, cheap housing often means higher crime or very rural. But, I live 20 minutes from the center of Kyoto and crime is almost non-existent. Also, we don’t own a car. That would be really tough in the states, but in Japan public transportation is inexpensive and very available.

[honzavosalik]

I like how Mindy directs more towards index funds.

Not everyone has the time or desire to get into realestate or starting their own business.

[gentlemans.guidance]

These are my tips that helped me on 45k a year.

1. I saved until i could house hack. From age 20 to 25. Bought multifamily.
House hacking. Living in one unit renting the rest.

2. 401k match 5% ten total, vested in fidelity 500. Up 14%.

3. Paid off my truck in two years.

4. Roth Max since age 25.

5. Five month emergency fund in a high yield savings account.

Adding a brokerage is the next step.

[Kornheiser]

Wow, Scott just falling off the cliff with this set of advice. WTF is he talking about about buying a 5 bedroom house making $45k. If you invest like Mindy said you have the benefit of time to exponentially compound. If you’re side-hustling a lot your not making $45k. Scott's clearly in a mood. I think he needs to change to Sanka. Chill dude, you're yelling in an obnoxious "agressive" tone.

[ncmay]

Not everyone that makes $45, 000 a year are just starting out.

[imveryhungry]

invest 15 percent of your income into index funds each month automatically, and then just live your life. Thats the best thing you can do. Stop obsessing about it and just make sure 15 percent is going into low cost index funds each month and live your life as normal.

[hoosier-daddy-wvgi]

High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.

[PokeJose]

Scott, just tell them to read Set for Life 🤣
You have it all set out in there and is what i followed.
Got my house hack about three years ago in Chicago thankfully.
Still possible in other areas in Midwest.

[Michael-wryy]

Great discussion because your both showing the different routes of achieving FIRE

[LaserMaser]

So basically what you’re saying is true FIRE is impossible unless you make 150k plus, retiring after 20 years is long past “early” retirement. At that point life would have passed you by. Curious to hear your thoughts

[josephhurst]

Couldn’t agree more with Scott. As someone who makes the lower bracket, house hack, live in flip, or building a business is a must. Roth and stocks alone will not get you there.

[KeeptheChange]

Scott is on here crushing dreams. All seriousness thought I think the reality of FIRE is you need good income. We were right at 110k household when we started. We've done drastic things to include moving overseas to increase income and live rent free to expedite our journey.

[jimv]

I reached FI back in 2020 at age 43. Still working full time at a new remote job....at least stress free to be honest.

I hate to admit that....ER is not an easy mental decision even if the math is all clear....ER has been my dream and goal for the past 20+ years.

[roguered]

Hmm, "How to reach fire based on your income, " but if you only make $45k then you you wont make it and you have to make more money. Insightful and so inspirational.

[patrickg]

Saving all $45k a year for 10-15 years is $450k to $675k at 0% interest. If you can’t be FiRE on that, you’ve got issues.

[JessicaT]

10 years is just hard. Even on 2x these income levels. 20 years for sure doable.

[michaeltitzer]

This one didn’t make sense to me. You started out with a single person making $45k/year, but when you got to $100k/year, you started to assume that was combined married income. Just pick one and stick with it the whole episode.

[IndiraRomero-rj]

Loved all the tips! Great show and easy to understand.