Strategies for late starters in FI?


For those beginning their journey towards financial independence (FI) later in life, here are some key strategies from Brad Barrett:

  1. Prioritize Debt Reduction: Eliminate high-interest debt, such as credit card debt, as a first step. This helps free up more money for saving and investing down the line 1.

  2. Increase Income and Reduce Expenses: Create a larger gap between income and expenses. This can be achieved by either increasing your income (e.g., through side hustles or career advancement) or by cutting unnecessary expenses 1.

  3. Think Differently: Adopt a mindset that views financial decisions through the lens of FI. Implement tax-efficient strategies like maximizing contributions to accounts such as an HSA, as proper planning can save a lot in taxes 2.

  4. Be Intentional and Plan Ahead: Be disciplined with your finances. For example, if receiving bonuses, plan in advance exactly how those funds will be utilized to prevent them from being spent frivolously 3.

    Starting Late, Pursuing Financial Independence

    Rachael and Brad discuss the misconception that financial independence can only be achieved at a young age and emphasize the importance of starting at any point in life. They also highlight the priority of eliminating credit card debt before investing.


    457 | Mailbag: Cover Your Expenses | Rachael Camp
  5. Start Where You Are: Begin saving and investing immediately, regardless of your current age. The alternative is to do nothing, which leads to no improvement 4. Even partial progress is better than none.

  6. Long-Term Investing: Focus on reliable, long-term investment strategies rather than trying to get rich quick. Avoid high-risk, high-reward investments that may result in significant losses 5.

In summary, it is never too late to start working towards financial independence. Although starting later may present more challenges, being strategic, disciplined, and proactive can make a significant difference.