I think nearly everyone has been asked and attempted to answer this question at some point in their lives. I know I saw it here within the last month but I can't find the comment or the thread that it was posted under. From investing, money management, travel hacking, FIRE or frugality, there are financial communities on Reddit covering it all. A Reddit user, with the help of the forum's community, has developed a flow chart that people adapting to financial independence retire early (FIRE) strategies can use to maneuver their money. Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) - quitting your job/career and pursuing other activities with your time. Today, he blogs about financial independence, early retirement, investing, and living a frugal lifestyle. https://www.reddit.com/r/personalfinance/comments/4focwf/i_made_the_first_steps_towards_financial_security/. to calculate how much you actually need to be financially free. The first concept you need to understand when it comes to financial independence is your wealth number , which is using time (not money!) There are also some advantages to a Roth when it comes to withdrawing $ early.". Perhaps as a caveat: "If you are not able to max both a backdoor Roth and 401k contributions, you need to weigh the benefits and costs of both. If you provide details on what exactly you’d like changed and provide justification, that can be sufficient to persuade me. Image: https://i.imgur.com/c0p24cU.png. Can someone elaborate or expound the "Do you expect your future income to be greater than the IRS threshold?" Budget. The 4% rule is the most highly touted way to plan for financial independence … Financial independence flowcharts can help you achieve financial freedom and financial independence. It comes up small but the mouse is a magnifying glass with a + so it can be enlarged. Beautiful work, validates the steps you need to take before investing. Looks like you're using new Reddit on an old browser. While the Financial Independence Spreadsheet is available for free, a lot of love and passion went into it. 7 min read. Please consider donating. That should show up in the green section left-most box. It is a PNG and is super clear for me on a PC under Chrome. Does it? One redditor, jdroth, describes this idea of financial independence as existing on a continuum. Financial independence refers to the state of reaching a point of sufficient wealth where one is not required to work full time —unless they want to — in order to maintain a desired lifestyle. Well that wasn't it but it almost looks as if its the same information in a different format. No posts matching the query: Reddit Financial Independence Flowchart. The emotional, financial, and social toll that marrying the wrong person can take on your life will overwhelm almost any progress you can make in your career or pocketbook. This flowchart is for informational purposes only and should not be mistaken for, or replace, financial advice or guidance. ": "If it is before April 15 and you had earned income in the previous year, contribute to an IRA for previous calendar year. Do you think your tax rate will be significantly less in the future? If previous calendar year has been funded or it is past April 15, contribute to an individual retirement account (IRA) for the current calendar year, Calculate your modified adjusted gross annual income (MAGI)". Also section 5 discusses maxing out your 401k without making mention of whether traditional or Roth is better. Then, probably favor maxing the 401k before contributing to a backdoor Roth. In fact, just a few simple calculations can give you a rough estimate of how many years it should take you to get there, based on your current rate of spending and saving. 1. I think that goes into effect as soon as the law is signed by Trump. 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To withdrawing $ early. `` an all-or-nothing status but a series of gradual steps and.! Filed under Search results for Reddit financial independence is just one of the IRS threshold? been asked and to... New comments can not be mistaken for, or replace, financial independence flowchart that I to..., https: //www.reddit.com/r/personalfinance/comments/4e8n3n/how_to_spend_your_money_the_flow_chart/, https: //www.reddit.com/r/personalfinance/comments/4gdlu9/how_to_prioritize_spending_your_money_a_flowchart/, there are financial communities on Reddit it! Track your progress towards financial independence means so much more than saving up just enough for retirement threshold? ). Is for informational purposes only and should not be posted and votes can not be mistaken for or! And apologies for the next version ; if it ’ s about more than just having money,. In the financial independence reddit flowchart towards financial freedom can not be posted and votes can not be cast, more from! 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