Joey Cohn here, and I’d love to have you guest post on RFI! I’m the creator of HardlySimple.com, where I help people improve their health and finances. Feel free to connect with me on Twitter @HardlySimple1.
Let’s be honest—no one ever says, “I can’t wait to wake up at dawn to work a job I don’t like with no way out.” Everyone dreams of financial independence, but it means different things to different people.
For me, financial independence is about not having to rely on work to support myself or my family for life. But since I enjoy working, it also means working without the financial stress that usually comes with a job. Another key aspect of financial independence for me is health. You might wonder what health has to do with not working for someone else, but it’s crucial. Healthcare is expensive—insurance, doctor visits, medication—it all adds up. If you can manage your health, you’ll have better control over your finances. Plus, what’s the point of financial independence if it comes at the expense of your health? I aim for a high quality of life both during my journey and once I achieve my goal.
A healthy lifestyle is essential. Our health isn’t entirely in our control, but a good diet and regular exercise can significantly improve it. Before I started my financial independence journey, I knew health was important, and I encourage you to see it that way too. But recognizing its importance isn’t enough—you need to act. Everyone’s different, so find what works for you in terms of diet and exercise. It’s about feeling better and living better, not just looking good. I’ve always been active and healthy, but this might be new for you. Get out of your comfort zone. You don’t have to run marathons or eat only cabbage—small, consistent healthy choices can compound over time, just like interest in a retirement account.
If you need help with health and fitness, check out “Beginners Guide To Improving Health And Fitness.”
Living in a consumer-driven society, I used to spend every dollar to keep up with others—dining out, buying expensive clothes, going on trips. But I wasn’t happy. I realized this lifestyle wasn’t fulfilling me and got into $28,000 in credit card debt by age 25. I had to change. Without a time machine, I researched and created my first budget. It wasn’t about penny-pinching; it was about controlling my spending. I consolidated my debt, saved money, and adjusted my habits to fit my budget. Monthly reviews and tweaks helped, and after about a year and a half, I was debt-free with some savings. A budget is a powerful tool for taking control of your life. For help creating one, try reading “How Literally Anyone Can Create A Budget.”
Here are the steps I’m taking towards financial independence:
401(k) Match
Whenever possible, I invest to get the maximum company match in my 401(k). It’s tax-advantaged, my employer adds free money, and it benefits from compound interest, where money earns interest on interest. I plan to keep contributing the maximum match amount.
Roth IRA
Five years ago, my wife and I started contributing $100 a month to Roth IRAs, aiming to max out contributions within five years. By the end of year two, we were able to do so. If you don’t have an IRA, open one and start contributing. It’s another way to ensure retirement funds grow over time.
Fixer-Upper Flip
We bought a fixer-upper to renovate and sell for a profit after four to five years, despite a challenging experience with a bad contractor and double the budget. Though stressful, we learned a lot, made a profit, and plan to use this knowledge for future flips or rentals.
Everyone’s journey to financial independence is unique. While I’ve shared mine and offered some advice, ultimately, you need to find what works for you. Best of luck on your journey!