Joey Cohn created HardlySimple.com to help people achieve a high quality of life through better health and personal finances. You can find him on Twitter @HardlySimple1.
No one wakes up enthusiastic about a job they dislike with no plan to escape the daily grind. We all fantasize about financial independence, but what that looks like varies from person to person. For me, financial independence means never needing to work again to support myself or my family. However, I enjoy working, so for me, it also means working without the financial pressure and stress that usually comes with a job.
Another crucial aspect of financial independence, in my book, is being healthy. I know it might sound unrelated, but stay with me. First off, healthcare is costly. Health insurance, doctor visits, medication, and treatments all add up, especially if you’re not in good health. So, by taking charge of your health, you can also take control of your wealth. Secondly, what’s the point of becoming financially independent if you sacrifice your health along the way? I want to enjoy a high quality of life both during my journey to financial independence and after achieving my goal.
Adopting a healthy lifestyle isn’t entirely within our control, but studies show that diet and exercise significantly impact overall health. Even before I began my journey towards financial independence, I knew health was essential. I encourage you to recognize this too. Agreeing is one thing, but taking action is another. I won’t dive into specifics because everyone’s different. You need to find what works for you. But I hope to motivate you to rethink your approach to health, especially diet and exercise.
Yes, diet and exercise improve your appearance, but more importantly, they make you feel better. I’ve always lived an active lifestyle, but if that’s not you, it’s time to step out of your comfort zone. You don’t need to run a marathon or stick to a strict diet of cabbage and celery. Like compound interest grows your retirement account, healthy eating and exercise can compound benefits for your health.
If you need help getting started, check out “Beginners Guide to Improving Health and Fitness.”
In a consumer-driven society, companies and influencers sell us dreams of the ideal life. I fell for it, spending every dollar I earned trying to keep up with the Joneses. Dining out, clubbing, splurging on expensive clothes and trips; I did it all. Yet, I wasn’t happy. I realized that the lifestyle advertised wasn’t fulfilling me. Then, it hit me—I was $28,000 in credit card debt at 25.
I needed to change, but without a time machine, I had to research and create my first budget. I set spending limits for each category, allowing me to control my finances and get out of debt. I also consolidated my credit card debt to a new card with 0% interest for 18 months, included savings in my budget, and adjusted my spending habits.
Every month, I reviewed my budget and made tweaks to improve. After about a year and a half, I was debt-free and had some savings. I highly recommend budgeting; it’s a powerful tool to regain control of your life.
For budget help, try reading “How Literally Anyone Can Create A Budget.”
Here are other steps I’m taking towards financial independence:
1. **401(k) Match:**
Throughout my career, I’ve always invested in the 401(k) when offered, maximizing the company’s match. It’s a tax-advantaged way to save for retirement, involves free money from the employer, and benefits from compound interest.
2. **Roth IRA:**
Five years ago, my wife and I opened Roth IRA accounts, contributing $100 per month with the goal to max out contributions within five years. By the end of year two, we achieved it. If you don’t have a Roth IRA, I suggest opening one and starting to contribute. It’s an essential investment vehicle for retirement, offering more control and benefiting from compound interest.
3. **Fixer-Upper Flip:**
We bought and renovated a fixer-upper. Though it was stressful and went over budget, we learned a lot and will make a significant profit when we sell. This experience taught us about home renovations and flipping properties for a profit or renting them out.
Everyone’s path to financial independence is unique. Although I shared my journey and strategies, you have to find what works for you. I hope you enjoyed reading about my experience and wish you the best of luck on your journey.