An Uncommon Perspective: This is What FI Looks Like for the Late Bloomer

Financial independence or FI—it's a term that gets thrown around a lot in discussions about money, lifestyle choices, and even retirement planning. But what does it really mean?

Put simply, it is having enough money to retire comfortably.  It's about having enough cash to ditch the 9-to-5, live comfortably, and call it a day on working for someone else.

I don't know about you, but when I first heard of the concept, I was totally flabbergasted. I was clueless! An ex of mine was dead set on "financially retire by age 34," and I didn't even know what the terms meant.  I was like, "Retiring? At 34? What are you even talking about?" He broke it down, and my jaw just dropped. I thought, well, that's just impossible for me. I mean, I'd just started earning real money after what felt like a lifetime in school. He? Straight out of college, boom, high-paying gig.

Here's the kicker: I'd been working since high school, hustling through college, and even had a post-grad gig with benefits (I worked as a teacher for the NYC DOE, making $34,000 a year).  Meanwhile, he's only on his second job ever, raking it in; he was pulling in at least a quarter of a million by 28 when you counted his day trading.

At this point in my life, I had only just started making any significant amount of money, having spent most of my 20s in school. I was nowhere near financially retiring- and now that I knew about it, I wanted it. I was basically a decade behind, and if I was going to achieve financial independence, if I wanted to catch up, I had some serious ground to cover.

Honestly, what's even wilder is how this whole thing happens to anyone pursuing graduate school. Life doesn't really start until your 30s, and by this point, all of your friends in banking and tech are done worrying about how to pay the bills; they're chilling. We're all banking on that graduate degree affording us lucrative careers, but the reality is, lawyers and doctors start out at the low end of 6 figures in major cities (which, please don't get me wrong, is better than the vast majority of Americans). And if you've chosen, say, Pediatrics (the lowest paying of the medical specialties), you're unlikely to make significantly more than that until well within your career.

And let's not forget the elephant in the room: DEBT. We're likely carrying a mountain from paying for those very degrees! So, not only are we starting late, but we're also starting in the hole. Look, I didn't go into this field for the cash. But still, I feel a little… duped. Where's the promised land of financial comfort we were all sold? How can I catch up to my friends?

Let's make some things clear:

1. FI is NOT only for the wealthy. Anyone can work towards it, regardless of income level.

2. You DO NOT have to live a life of deprivation. Achieving financial independence isn’t about being cheap. It’s about aligning your spending with your values and priorities. You can still enjoy life while being responsible with your money.

3. It's NOT all about retirement: While many people do aim for early retirement, financial independence is more about having the freedom to choose how you spend your time, whether that’s working, traveling, or pursuing hobbies RATHER than having to pay for things you don't want to pay for.

4. FI DOES NOT require multiple millions in the bank! The number required for you to reach FI is personal. It's about achieving a level of financial security tailored to your lifestyle. A standard benchmark for FI is the "4% rule," which suggests you need 25 times your annual expenses in investments. This provides a tangible target. This gives you a target investment portfolio. For instance, if you spend $4,000 monthly ($48,000 annually), your FI number would be $1.2 million. This allows for a comfortable, sustainable lifestyle. Of course, if your dream retirement involves private jets and yachts, you'll need a significantly larger sum. The key is to define your ideal lifestyle and calculate your FI number accordingly.

   
   

At its core, financial independence means having enough income from investments, savings, or other passive sources to cover your living expenses without needing to rely on traditional employment. It's the point at which your money works for you rather than you working for money.

Achieving financial independence often requires building wealth through smart financial practices like saving, investing, and living below your means. People often associate it with retiring early (look up the FIRE movement), but it can also mean having the freedom to pursue passions without worrying about income.

So, what's FI really about?

1. Freedom of Choice: You get to call the shots. Work, don't work, switch careers, see the world—it's your call.

2. Less Stress: Money can be a significant source of anxiety. By taking charge of your financial situation and working towards independence, you reduce financial-related worries.

3. Better Life: It’s not just about quitting your job. It's about filling your days with stuff that actually matters to you. Real experiences, not just the daily grind.

4. Building a Legacy: You're not just securing your own future; you're setting up the next generation. Leaving them something real, maybe even giving them opportunities you never had.

To be clear, I have NOT achieved FI, nor am I close. I have student debt that I am waiting for forgiveness on, and I have too few dollars in my retirement accounts. Not to mention that the stock market is tanking as we speak. So, this isn't me preaching from some financial mountaintop; it's me figuring this out along with you. This is advice for me, too.

Here's the "late bloomer's guide" to chasing that FI dream:

1. Set Clear Goals

Before you dive into your financial journey, it’s essential to define what financial independence means for you personally. Are you aiming to retire early, travel the world, or simply have enough to cover your everyday living expenses? Knowing your goals will help you create a focused plan.

2. Create a Budget

Budgeting is a crucial step in taking control of your finances. Track your income and expenses to see where your money goes. This will help you identify areas where you can cut costs and save more. Pro tip: Ensure your budget reflects your financial goals to keep you motivated.

3. Live Below Your Means

This might seem obvious, but many people struggle with lifestyle inflation. Just because you earn more doesn’t mean you should spend more. You get a raise and want the nicer car and the bigger apartment. Wrong. Fight that impulse! Resist the "Upgrade" urge. Cultivating a habit of living below your means is critical in accumulating wealth.

4. Invest Wisely

Investing is where your money can begin to work for you. This is where the magic happens. This can take many forms, such as stocks, real estate, or mutual funds. Diversifying your investments will help mitigate risks and build a robust portfolio that grows over time. And when the market throws a tantrum (like, you know, right now), try not to lose your cool- stay put (or as I am told, this may be the time to buy because, inevitably, the market will recover).

5. Build Multiple Income Streams

Reliance on a single source of income can be risky. Explore side gigs, freelancing, or passive income opportunities. Having multiple income streams can significantly speed up your path to financial independence.

6. Stay Educated

Keep learning about personal finance, investing, and money management. The more you know, the better decisions you’ll make. Countless books, podcasts, and online resources are available to help you improve your financial literacy.