Why would you want to be on FIRE you ask? Because in this case FIRE means Financial Independence, Retire Early. That is a concept we can get behind and one that our guest Dr. Leif Dahleen is living and breathing. Leif is the author of the popular Physician on FIRE blog as well as a retired anesthesiologist. Retiring early might not be for everyone, but I think we are all striving for financial independence. What can you do to position yourself to achieve that kind of freedom? Scroll down for the audio-only version.
Go where the money is. Especially early in your career, you can often make the choice to work in an area where doctors are in high demand, make more money, and sometimes even reduce your cost of living. This gives you a great opportunity to jump start your retirement savings.
Embrace downsizing. People tend to want to increase their lifestyles over time, but would you give up some creature comforts today in order to have more freedom? Living in a less expensive house, driving a less expensive car, and saving on other big items give you a lot more flexibility in your budget. And if you don’t need to support an extravagant lifestyle, then you don’t need as much in savings to get by in retirement.
It’s about having choices. Not everyone wants to retire early but being able to work on your own terms can have a huge impact on your satisfaction with your work. For some people, it is all about being able to spend more time with family while they are young, whether through early retirement or just a reduced work schedule.
Tip of the Day: Try living on half of your take-home pay and save the rest. That may seem like a big sacrifice but for many physicians, it is still a substantial income.
Special thanks to Dr. Leif Dahleen of Physician on FIRE for joining us in today’s episode! Proceeds from his website are currently supporting Covid-19 relief through the CDC, WHO, Meals on Wheels, and Get Us PPE.
For more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance
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