Save And Invest Less For Financial Independence – FIRE Movement


– We all hear that to achieve
financial independence, retire early, you need to invest
to the max amount of money into all of your retirement accounts. But what if, what if, you
wanted to save less money and still achieve fire
with out being lean-fire. In this video, I’m gonna
go through different ways to invest less money into
your retirement accounts and still come out ahead
so that you can reach financial independence or early retirement a lot faster than the average person. Hey, I’m Jarrad with an a. And on this channel we like
to talk about all things p, p, personal finance
(laughing) and investing. And we like to have a little
bit of fun in the process. I want to mention real
quick that you should still be investing money into
your retirement accounts. But you could potentially
have to invest less if you do some of the
things that I mention. For example, I’m taking advantage
of a few of these things but I also invest in my
401K and HSA through work. And I also invest in my IRA and taxable accounts through M1 Finance. Link to my M1 Finance videos
are in the description if you are interested. The first way to invest less for fire is by getting your health
in order right now. Now this goes for your
physical, nutritional, and mental health. I like to call it the trifecta
of living a healthier life. Think of it like the same kind of preventative maintenance with your car. So, an old oil change or tire rotation but for that little meat
suit that you carry around every single day. The less that you’re in and out of the doctor’s office for
things that are in your control, the more money that’s
gonna stay in your pocket. Too often, people talk about investing for financial independence
or early retirement and only focus on the money side. Now I agree that the money side is a big hurdle that
needs to be addressed. It has to be. But let’s not forget about
what’s gonna give you the ability to live a longer life where you can actually still be active. Because if you have a bunch of money and your health is absolute
garbage, it’s trash, then was it worth accumulating
all of that wealth and putting all that time into accumulating all of that wealth? Um, no. When it comes to your physical health, you don’t have to do
anything wild and crazy. So don’t freak out on me. I’m not suggesting you
go do some power lifting or body building or crossfit or any kind of training like that. The simplest way to explain it to you is to focus on at least
having some sort of strength, flexibility,
stability and endurance. And you will be just fine. Here’s a quick physical fitness check. If you get super out of breath going up, we’ll say, six
to eight flights of stairs, then you are out of shape
and you need to get your butt back in shape before you hit FI. When I run Spartan Races, I see way too many
people with disabilities out on the course getting after it. Which reminds me, that
people like you and I, have zero excuses. On the contrary, I see
people in my daily life that are in their 30s, 40s or 50s, who move around like
they’re 100 years old. It is sad and if this is you, you should absolutely
be ashamed of yourself. Yes, I’m publicly shaming you. So, go find your safe spaces because this channel right here, is not gonna sugarcoat it for you and I’m not gonna beat around the bush. I made a whole video on affordable pieces of workout equipment and workout programs that you can use to get in a really good and effective training session inside and around your house or apartment. I’ll have the link to that video down in the description for you to check out after this video. Next, is your nutritional health. Take your hands out of that Cheetos bag, rinse off those fingers, and wipe the Cheetos dust off of your phone screen or keyboard. Because it’s not good for you. Bad food is a little
too easily accessible. So, this can get out of
control really quickly, if you’re not careful. I’m speaking to you from experience. Because I have a horrible, horrible relationship with food. So, this is something
that has to be constantly at the top of my mind every single day. Because this has been such a huge problem for me in the past, I’ve had to create systems and processes in my life to keep it in check. I made a video sharing my methods if you wanna check it out after this one. Link to that video is in the description. Another thing you need to do to get ahead of this nutritional health, is to find out if there are any health issues that run in your family. Hereditary things like heart disease, high blood pressure,
diabetes and things like that can be really easy to get ahead of by fixing your diet if you
know about them right now. The goal is to not need
prescribed medicine to fix that crappy diet of yours. Because eating more healthy can be more beneficial
without the side effects. Plus, eating healthy
fixes the actual problem as opposed to using the medication to mask the underlying issue. Just a disclaimer, I am not a doctor. I don’t play one on the internet. I know that some people
need to take medication based on their specific situation that’s out of their
control and that’s fine. So, check with your
local, drug dealing doctor before taking any of my health advise. Hey, it’s me. I’m recording this video that
you’re watching right now and I realized that I didn’t say to please Hulk smash
that thumbs up button. The next way to invest less money for financial independence
in your retirement accounts is by spending less of
it on car purchases. My solution would be to use the method I coined, the car hacking strategy. Now, don’t worry because you can actually still buy cars with this strategy. But in the long run, you’re spending less money out of your pocket and spending less money
from your retirements, to buy new cars. Not everyone is gonna walk
or ride a bike everywhere. I, personally, am not one of those people. Sure, it can be done for some things but the vast majority of us are gonna need a vehicle of some sort. Okay, speed walkers and bikers go ahead and voice your concerns in the comments below telling us how we’re all
dumb for even owning a car. Because I know you’re gonna do it anyways. So, let’s just get it over with. The car hacking strategy is a way for you to invest a certain amount of money over a certain period of time, never have to invest another dollar again and get a new car every eight years. It would take me another 10 minutes to lay out the exact plan. So, I won’t cover that in this video. But if you want to see me walk through the whole process and the numbers, then I’ll leave the link, in
the description, to that video. I’m in the process of
working through this strategy in my personal life right now. Maybe I’ll make a future video updating you on how it’s going. So, make sure you hit
that subscribe button and the notification bell. The next way for you to save less for financial independence is by moving somewhere else. And there’s actually two
different ways to do this. No, I’m not suggesting you move back into mom and dad’s basement. I’ve already heard enough of those stories about how more and more millennials are living with their parents nowadays. That’s insane to me. So, let’s not contribute to that problem. Let’s be honest though. Housing has been and will continue to be one of the most expensive things that we all have to spend our money on. If you want to invest less for fire then you’ll need to find a way to stretch your dollar
just a little bit further in this particular area. The first way is to move
to a different country where it’s a lot more affordable to live. This is usually called geoarbitrage, a.k.a geographical arbitrage. It’s essentially where you take advantage of the difference in cost of living between two different
geographical locations. Since wages are higher in the US, compared to the country you’d move to, then you can use that to your advantage. You’ll be earning, saving, and investing based on the US economic system. But your expenses will be based on the less expensive country where you plan to move. So, you win. Sometimes we forget because we’re stuck in this United States bubble. But the world is a
really, really big place. Which means there are a ton of places for you to potentially
move that cost a lot less. There’s probably a lot
more than you even realize. I have a map hung up in my garage gym and every time I work out I just sit there and
stare at the world map. Because it’s insane how many
different little cities, and countries there are out there. Your next thought might be, “Well Jarrad, since the world is so big, “how am I suppose to
narrow the options down “and get a little bit more
info on each of them?” Luckily, there’s a lot of people out there working from the road
called digital nomads. Now these digital nomads
like to share things from their travels
that’ll help you get all of the details that you need. A great resource you can use is a website called nomadlist.com. On this website, you can
find out more than enough details on every city that
you might be interested in. Now before you plan your whole life around moving to a city that you have in mind, you need to actually visit that city before you throw all the chips in. I know this seems obvious but leading up to the point where you hit financial independence, this future home needs to be your new vacation spot every single year. Think of this as a way for you to test out your future life. On these vacations, you
need to spend your time like you’re basically
living there right now. You should talk to the local people, visit the local grocery stores, pretend like you’re
grocery shopping there, check out the local festivities or festivals if they
have anything going on, and anything else that you want to plan on doing while you live there. If you decide that you
don’t wanna live here, then no big deal. You just cross something off your list. But, pick a new spot and go there for your next vacation, the next year and the
following years after that. If moving out of the country does not sound appealing to you at all, then no worries. You can always look into moving to a different city
within your current state or even moving to a whole different state. The difference between cost of living from state to state and even city to city is absolutely nuts. The price of a home in Los Angeles is more than double the national average. On the other hand, there
are great places to live, where the cost of living is well below the national average. Just like if you plan to
move out of the country, you need to vacation in the city or state that you wanna move to every single year leading up to your fire date. Another bonus with moving
to a different state is that if you choose the right one, then you could completely bypass paying state taxes on
your retirement income. Now, there’s currently 12
states, in the United States, that will not touch your pension, they won’t touch your 401k or your IRA. The bottom line is if you want to invest less money for financial independence and you live in a city where
the costs are above average, then you need to plan on moving, period. If you don’t wanna move, then you’ll need a little bit
more money to achieve fire. The next way to invest less
for financial independence is by doing something about
your current housing situation. One thing you can do is
downsize your current home sooner rather than later. If you’re single or a couple then this should be pretty easy to do because you don’t need
that much space anyways. If you’re a couple and
planning on having kids then the last thing you need to be doing is getting a bigger place before you actually have that baby. In my opinion, you should
wait until the absolute last minute to get a place where you need more than one bedroom. Now if you’re a family, then this could be a
little bit more tricky, but not unattainable. Parents, the first thing you need to do, is get your darn kids out of the house, as soon as possible,
once they’re old enough. I know you love little Timmy so much and you want the best for him. But they’ll learn some
responsibility a lot faster the sooner you force them
out into that situation. You supported them for the
first 18 years of their life. So, now it’s time to cut them off. Get out there and make something
of yourself little Timmy. Once your kids are out of the house, you need to downgrade as soon as possible. Staying in a two or
three plus bedroom home, when there’s only two people living in it, is gonna slow down your goal of reaching financial
independence as soon as possible. I’m not completely against you staying in a two plus bedroom home. But, if you do, then just try to move to a home that is gonna be a lot cheaper. If you have zero interest in moving, then you might want to think about paying off your home before you reach financial independence. If you get it taken care of now, then that’s one less payment
that you need to make. Which means that that’s
less money that you’ll need to pull from your investment
accounts every single year. Paying off your mortgage
is not for everyone. For example, I’m not interested
at all in doing this. But, if I were trying to invest
less to reach fire faster, then this might be one of the options that I would entertain. This one, you need to really think about. But, it is an option. You could always opt to
receive Social Security as soon as possible. At this point in time,
62 is the earliest age that you can start collecting this money, 66 is technically considered
full retirement age. If you do this, then you of course don’t need as much money
in your fire nest egg to get you by. Keep in mind, the earlier
you take this money, the less you’ll receive per month. As of right now, taking the payout at 62, will net you 25% less, than if you took the money
out at the age of 66. Deciding to do this is all dependent on you and your situation. Another thing to note is
that for us younger people, the millennials and younger, the retirement age has
the potential to change. Which could either increase the age from 62 to who knows what, or they could change that 25% less to 30% less or something higher. I, personally, do not have very much faith in these lifetime politicians
fixing any of this. Because they are all a bunch of idiots who are only doing what’s
best for their reelection. Which is why I do not include any sort of Social Security money
into my retirement planning. I could rant about this all day but it’s not gonna do anybody good. Jarrad’s sitting here
whining on the internet. So, I’m gonna stop right there. Having all of your money
invested in the stock market might freak you the heck out. And I get it. But you’re gonna have to do
something to grow your money at a faster rate than what it earns if it’s just sitting in a
high yield savings account. One of the best ways to invest
less in the stock market but still get decent returns, is through buying cash
flowing rental properties. The more wealthy people I study, the more I notice that a lot of them are diversified with their investments. Most of them have some
portion of their portfolio in real estate of some sort. Think about it. Owning a physical asset that pays you every single month,
sounds like a slam dunk. It’s basically like owning
shares of an index fund but you actually have more control over the type of money that you make. The revenue streams from
owning rental properties are absolutely insane as well. Just to name a few, you can make money from the monthly rent
payments from your tenants, you can make money from
appreciation on the home, you can even benefit on your taxes. I’m currently in the beginning stages of investing in real estate to help diversify myself
a little bit more. As I go through this process for myself, I plan on sharing more
about that whole adventure. It is a little overwhelming and it’s scary to be honest with you since I don’t know much about it, but it’s also exciting as well. Check out these videos to your left. The top one will take you to a playlist of all my financial independence
retire early videos. The bottom one will take
you to a video I made on how I save and invest 70% of my income. Check out the links in the description to more resources and playlists to help you out with all of your personal finance
and investing needs. Make sure to Hulk smash
that thumbs up button. I’ll see you in the next one friends. Adios.

8 thoughts on “Save And Invest Less For Financial Independence – FIRE Movement

  • Invest In Partial Shares With M1 Finance For Free (where I invest my money) https://www.debtfreeblueprint.com/M1Finance

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  • Love how you tie fitness and health to personal finance. Gotta be healthy in order to maximize and take full advantage of your money in the long run 💪

  • 10:15 – I'm american and I still don't understand why my fellow Americans are so damn set on kicking their kids out. My parents (Immigrants) are letting me stay rent free and because of this I'm taking YEARS off of my retirement date. Also @ 6:00, why is this is insane? Do you see student loan debt? Do you see house prices? These things are whats insane, not people staying a few more years to survive. Just because you didn't stay home, doesn't mean that's the best solution. In this environment, its way smarter to stay home.

  • Might be off topic. Only just started video. What are your thoughts on front loaded (actively managed) Roth IRAs? My financial advisor who is a Fiduciary set one up for me through American Funds. I pay $10 annual fee, 5.76% on deposits, and a
    .06-07% on something else. Over time would this translate to a 1% loss on growth? Does it even out with cheaper investment vehicles for Roth's? Do you have a video I can Hulk smash that speaks to these things? Thanks for your time and great content. Hasta La Vista.

  • “…yes, I am shaming you…” Jarrad, I LOVE IT!! LOVE that you did not shy away from that topic. You are correct, no excuses!💪🏻👏🏻🔥🔥🔥🔥

  • Fixing my body is going to require surgery and a lifetime of expensive medication. Idk if this video applies to me, as I would spend about 20k, and still pay for monthly meds.

  • YESSS to the health part and 100% agree. That's been my biggest lesson this year–that I shouldn't skimp on health.

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