These are the EconoWiser steps that worked for me:
Either read about my advice for Pat the Rat or….
- Know where your money is going by keeping track of it
- Adopt a wise spending and sensible saving lifestyle, spend way less than you earn and try to increase the gap between spending and saving as much as possible
- Pay off all debt and/or avoid debt all together
- Build an emergency fund
- Learn how to invest in index funds*
- Make extra investment payments towards your retirement, if at all possible
- Create F-You money (which allows you to walk away from unwanted situations)
- Become financially independent (and retire early if you want to)
Now you have become an EconoWise-Ass!
I myself have reached step 7 and I’m working hard on step 8. I am halfway to FIRE. You can follow my progress in my money overview.
* I invest in Vanguard index funds and that’s it. No real estate, crypto currencies and what have you. I follow The Simple Path to Wealth by jlcollinsnh and have adapted his recipe so that it works in my country (The Netherlands) and probably in a lot of other countries around the world. I wrote a guest post about it.
EconoWiser 