Get through the steps of paying off high interest debts such as credit cards, leveraging your company’s 401K plans and starting your personal IRA, retiring your car loans, and finally closing out your student loans. Of course, you need to consistently work on your savings rate. After that, you need to start more advanced investing.
I’ve tried to play the market buying individual stocks with hopes of huge returns. I even had a short stint as a day trader, and I wasn’t good at it. That’s why it was a short stint. Also, I tried options trading. I did pretty well for a while. But then I didn’t. Like I said, I wan’t good at it. I also have investments in real estate. At one point I invested in a friend’s business.
While trying all these angles, I typically invested in mutual funds for the long haul. That’s worked out pretty well for me. However, there were times it felt like it didn’t. When the dotcom bubble burst, planes hit the towers on September 11th and the housing bubble burst a few years back, those accounts felt pretty thin. Nevertheless, those were long term accounts. Money stayed in them, and it paid off.
Even though I’ve done OK with some mutual funds, I am no expert. I wouldn’t dream of giving you specific investment advice. Though I may mention investing plans or ideas over the course of writing this blog, it would be for information only. You should do the research yourself and pick an investment strategy that is comfortable for you. But you should invest.
Of all the things I’ve read about investing in the stock market, the most helpful was a stock series by J. L. Collins. You could try it out, too.
At any rate, once you’ve made it this far you will be well on your way to retiring sooner. Remember, your savings rate is the most power tool you have. Next will likely be the fact that your money is actually working for you.
Beyond that, you might ask what’s next. That’s where this blog comes in. We will post helpful content here to help you work on you path to FIRE. (Financial Independence Retire Early) Writing about what has helped us and what hasn’t will help you take some shortcuts and even miss some pitfalls. Let’s enjoy the rest of the ride together!