Reaching Financial Independence and Retiring Early (FIRE) is an incredible achievement. It signifies years of hard work, sacrifice, and discipline to gain control over your financial future. However, like any long-term goal, the journey isn’t without its challenges or lessons learned along the way.
While my FIRE journey has ultimately led to the lifestyle I desired, there are certainly things I would have done differently if I had the benefit of hindsight. From saving earlier, avoiding impulse purchases, to making more strategic career choices, there are valuable lessons I’ve learned post-FIRE that would have fast-tracked my success.
In this post, I’ll reflect on what I wish I had done differently during my FIRE journey and share the lessons I’ve learned. If you’re on your own path toward FIRE, these insights may help you avoid the same pitfalls I experienced and set you up for an even smoother ride.
Background:
When I first set my sights on FIRE, I had an image of how my life would unfold. I focused on cutting expenses, saving aggressively, and investing wisely. The dream was to reach a point where my investments and savings could support me indefinitely, freeing me from the constraints of a traditional job.
However, as with anything in life, the journey didn’t go exactly as planned. There were moments of doubt, unexpected market fluctuations, and plenty of hard lessons learned. As I reflect on my journey post-FIRE, I realize that I could have been even more strategic about certain decisions and saved more time, money, and effort by making a few key changes earlier.
In this post, I’ll explore the five biggest changes I wish I had made earlier in my FIRE journey and how these lessons shaped my post-retirement life. These insights will not only apply to those just starting their FIRE journey but also to anyone who is currently navigating post-FIRE life and looking to optimize their financial future.
Key Concepts:
- Early Saving Habits: The importance of starting your saving and investing strategies earlier in life.
- Market Fluctuations: Understanding that the stock market has ups and downs and learning to weather them.
- Multiple Income Streams: How balancing several jobs can create more opportunities for financial growth without feeling guilty.
- Real Estate Investing: The power of real estate and why you should start sooner rather than later.
- Actionable Planning: The value of having a clear action plan and executing it consistently to achieve your goals.
Detailed Explanation:
Now, let’s dive into the lessons I’ve learned post-FIRE and reflect on what I would have done differently to get here faster and more efficiently.
1. Start Saving Earlier and Avoid Wasteful Spending
One of the biggest mistakes I made was not starting my aggressive savings and investing strategy earlier. I didn’t fully realize the power of compound interest or the impact of small, unnecessary expenditures until much later in my journey. I spent years buying things I didn’t need, things that I thought would bring short-term satisfaction but didn’t add lasting value to my life.
Ask yourself these questions before you buy anything:
- Will I still be using this in five years?
- Will I care about it in five years?
- Will I think it was worth the money I spent on it?
The key to avoiding this pitfall is simply to delay gratification and focus on the long-term. Looking back, I wish I had been more mindful of my purchases early on, as these small expenses would have added up over time. By redirecting that money into savings or investments, I could have grown my wealth exponentially and reached FIRE even earlier.
2. Don’t Fear the Ebbs and Flows of the Market
The stock market is volatile—there’s no doubt about that. But rather than letting market fluctuations cause stress or fear, I learned to accept them as part of the process. There were times when I panicked, especially during significant market downturns, and made knee-jerk decisions that ended up being detrimental in the long run.
The reality is that the market will go up and down—it’s cyclical. The key to thriving during these ups and downs is to set it and forget it. Invest in low-cost index funds, continue contributing regularly, and ride out the volatility. While it’s easy to get caught up in the headlines, staying disciplined and focused on long-term growth is crucial.
The goal is simple: don’t try to time the market. Keep contributing to your portfolio as much and as often as possible, regardless of whether the market is up or down. The consistent contributions will help smooth out the highs and lows over time.
3. Work Multiple Jobs Without Feeling Guilty
One of the greatest lessons I learned post-FIRE was the value of multiple income streams. When I first started my career, I didn’t fully appreciate the power of working multiple jobs or side gigs. I used to feel that having more than one full-time job (FTE) was excessive or “greedy.” But the reality is, having multiple jobs allowed me to accumulate wealth much faster.
For years, I worked multiple roles, and I wish I had started doing this even earlier—specifically in 2007 when I was transitioning from WWE to Starwood Hotels. I could have continued working remotely for WWE while simultaneously building a career with Starwood, stacking those additional paychecks. I regret not capitalizing on that opportunity.
The lesson here is clear: don’t be afraid to double dip if you’re capable of handling the workload. As long as you’re meeting your responsibilities and not affecting your performance or relationships, working more than one job can accelerate your path to FIRE. Don’t let societal norms or personal guilt hold you back from maximizing your earning potential.
4. Invest in Real Estate Sooner
Another major takeaway from my FIRE journey was real estate investing. I waited until 2020 to make my first real estate purchase, and I can’t help but wonder what might have happened if I had started investing in property back in 2015 when prices were significantly lower. Real estate is an incredible wealth-building tool, and the earlier you start, the more you’ll benefit from appreciation and passive income.
While the 2020 market provided great opportunities, I now realize that I could have capitalized on lower prices earlier in my FIRE journey. Real estate isn’t just about purchasing property—it’s about strategic investing that can provide rental income, tax advantages, and long-term equity growth.
If I could go back in time, I would have started buying rental properties or real estate in my 20s or early 30s. The earlier you start investing in real estate, the more you can take advantage of appreciation, leverage, and passive income opportunities.
5. Have an Action Plan and Actually Follow It
Having a concrete plan is critical in achieving FIRE—and following it is equally important. I didn’t develop my detailed action plan until 2019 when I sat down with my mom by the pool during a vacation. During that conversation, I laid out my 5-year goals and objectives. Up until that point, I was focused on saving and investing but didn’t have a clear strategy in place for how I would reach FIRE in the most efficient way possible.
I realized that success in FIRE isn’t just about working hard—it’s about working smart. The plan should include clear, measurable goals, timelines, and actions that drive you toward financial independence. I would have benefited greatly from having this action plan much earlier in my journey, as it provided the structure and accountability I needed to stay on track.
6. Be Careful About Hiring Too Many Employees
One of the mistakes I made in my early entrepreneurial endeavors was hiring too many employees. In 2011-2012, I had 13 people working for me at my office in Paramus, NJ. The overhead costs associated with managing so many employees were high, and while I tried to create a great working environment, the ROI was not there. Ultimately, I could have run a much leaner operation, saving more money that could have been invested for future growth.
Looking back, I realize I could have easily managed a smaller team of 2-3 people, which would have significantly reduced expenses. Instead of spreading myself too thin and incurring unnecessary costs, I could have focused on streamlining my operations and investing the savings.
Step-by-Step Guide:
- Start Saving Early: Begin your savings plan as soon as possible and prioritize long-term goals over short-term wants.
- Embrace Market Fluctuations: Instead of worrying about market volatility, focus on your long-term investment strategy. Continue contributing regularly, regardless of market conditions.
- Maximize Your Earning Potential: Don’t be afraid to work multiple jobs or side gigs, as long as you can handle the workload. More income means faster progress toward FIRE.
- Invest in Real Estate Early: Don’t wait for the perfect time to invest in real estate. Start as soon as possible to take advantage of market opportunities.
- Create and Follow an Action Plan: Develop a comprehensive, actionable plan for your FIRE journey and hold yourself accountable to it.
- Keep Operating Costs Low: Avoid unnecessary hires or over-expansion in your business. Keeping expenses low and focusing on high ROI activities will accelerate your financial growth.
Tips:
- Invest in Low-Cost Index Funds: Keep your investments simple and cost-effective by focusing on low-fee index funds.
- Avoid Lifestyle Inflation: As your income increases, resist the urge to increase your spending. Instead, continue investing and saving as if you’re still on your FIRE journey.
- Build a Strong Network: Surround yourself with people who inspire and challenge you. Building a strong network can open up more opportunities for income generation and personal growth.
Case Studies or Examples:
- Case Study 1: Early Real Estate Investing
Sarah started investing in rental properties in her early 30s. By diversifying her portfolio early on, she was able to build a steady stream of passive income. This income significantly boosted her FIRE timeline and allowed her to retire earlier than expected. - Case Study 2: Multiple Jobs for Faster FIRE
John worked two full-time jobs for several years. By doubling his income, he accelerated his savings rate and built his investment portfolio. While it wasn’t always easy, the extra effort helped him reach FIRE earlier than his peers.
FAQ:
Q: What’s the biggest mistake you made in your FIRE journey?
A: Not starting real estate investing earlier. I waited too long to get into the property market, and if I had started in my 20s or early 30s, I would have built substantial wealth much faster.
Q: How do I handle market downturns while building my FIRE portfolio?
A: The key is to stay consistent with your contributions. The market will fluctuate, but sticking with your investment plan and focusing on long-term growth will help you weather the storm.
Conclusion:
The journey to FIRE is full of twists and turns, and with every challenge comes a valuable lesson. Reflecting on my own experience, there are several things I would have done differently, from starting earlier to embracing multiple income streams. These lessons have shaped my post-FIRE life and helped me continue to grow financially and personally.
By applying these lessons to your own FIRE journey, you can avoid some of the mistakes I made and accelerate your path to financial independence. Always remember—time is your most powerful asset, and the earlier you make smart decisions, the more wealth and freedom you’ll build for your future.
