Money problems can creep up on us in a variety of ways: unexpected bills, frustration over slow progress toward goals, or simply the daily grind of tracking expenses. Over time, these challenges can build into a serious mental strain, commonly referred to as “financial burnout.” Just like job burnout, financial
Adding Earned Income in ReachFi What is Earned Income? Earned income refers to money received from active work, including: ✅ Salaries & wages from a full-time or part-time job ✅ Bonuses & commissions ✅ Tips ✅ Other employer-based compensation Earned income is subject to payroll taxes and differs from passive income, self-employment income, or
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Have you ever noticed that a portion of your paycheck goes toward taxes? It’s no surprise that taxes on earned income include federal income tax, state income tax (in some states), Social Security, and Medicare. These deductions are based on factors like your income level, filing status, and any
FIRE Calculator
ReachFI is a valuable FIRE calculator for families striving to achieve financial independence while managing the costs of raising children. ReachFI can help you create a structured plan for visualizing, managing, and adjusting your finances based on current and future expenses, including education and extracurricular activities. Here is what you
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A FIRE (Financial Independence, Retire Early) budget is designed to help individuals achieve financial independence and retire significantly earlier than traditional retirement age. Here’s how a FIRE budget differs from a regular budget: 1. Aggressive Savings Rate * FIRE Budget: FIRE followers typically aim to save and invest a high
When we budget, we focus primarily on regular, predictable expenses such as housing, utilities, transportation, taxes, groceries, and entertainment. These recurring costs are typically easier to estimate and plan for. However, unexpected expenses, which often have a more significant financial impact, are commonly overlooked. Examples include major home repairs like
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For those pursuing Financial Independence, Retire Early (FIRE), choosing the right investment strategy is crucial for building and sustaining long-term wealth.
Savings Rate, Net worth, investment returns, expense ratio, and time to FIRE are five key metrics you need to focus on to reach financial independence
Lean FIRE
How do you Budget for Lean FIRE (Lean FI)? A Step-by-Step Guide Achieving early retirement may seem like an attractive goal, but deciding on the path to financial independence can be challenging. Find value in leading a simple lifestyle, focusing on the essentials, and prioritizing practicality over extravagance. Pursuing Lean
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Geo-Arbitrage FIRE is slightly different from other FIRE strategies. Here, instead of focusing on how much you're saving, you divert your attention to where you live. By relocating to a place with a lower cost of living, your current savings can stretch further.
Lean FIRE
Lean FIRE is an extreme version of the FIRE (Financial Independence, Retire Early) movement, where individuals live well below their means and only cover basic necessities to achieve their financial goals.
Do you want to become financially independent long before the traditional retirement age but need help figuring out where to start? The first step is understanding your financial independence number and how to calculate one. What Is a Financial Independence (FI) Number? Your financial independence (FI) number is the total