Dr. E’s Path to Financial Independence: A High-Income Case Study

I’ve shared my personal path to FI and we’ve explored a host of scenarios for our hypothetical 4 physicians. Today, I’d like to take a deep dive into the finances of another real physician who we’ll call Dr. E. The name has been changed (it’s not short for Dr. Evil), and the details rounded off, but we’re talking about one of your fellow readers and his actual finances. The good Dr. E is a hard-working physician, a few years into his post-fellowship career. He earns a handsome salary, but boy, oh boy, does he work hard for the money. In […]

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Financial Independence versus Financial Freedom

Financial Independence is a wonderful thing. I frequently sing its praises, and I am proud to have achieved the milestone for myself and my family. Having attained FI completes half of the FIRE acronym, and I’ve got plans for the RE part soon enough. I haven’t pulled that trigger yet, though, have I? Why not? After all, by definition, I’ve got Enough. I could have given notice a year ago and maintained our lifestyle indefinitely. But the truth is I’ve been straddling the fence, and each time my toes graze the grass on the other side, I retreat. I’m still working, […]

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The Live on Half Challenge

Castle Rock UP

Live on Half.   It’s not a suggestion or a recommendation. It’s a challenge. If you can find a way to meet this challenge, you will be rewarded handsomely. How so? Living on half of your take-home pay, or to put it another way, saving and investing as much as you spend, should lead to financial independence (FI) in roughly 15 to 20 years. Work becomes optional. You can live the rest of your life on your own terms. That’s a reward that I feel makes certain sacrifices well worth it. What kind of a sacrifice are we talking about? I’m so glad I asked! […]

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Top 5 Ways to Derail Financial Independence & Early Retirement

Does the concept of financial independence appeal to you? Would you like to have the option to retire early? Great! Me too! One of my goals is to help give you the knowledge and motivation to help make FI a reality. I’ve talked about why you might want to retire early and how to go about it. I would be remiss if I didn’t talk about how not to do it. Presenting, the Top 5 Ways to derail your FIRE plans. 1. Live Beyond Your Means This one is obvious. The only way to accumulate the money required to call yourself […]

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Top 5 Reasons to Achieve Financial Independence

Welcome to another Top 5 list, the Top 5 Reasons to achieve Financial Indendence (FI). I’ll admit, it wasn’t easy whittling this list down to 5.   1. Give yourself options. Being FI, you’ve got a nest egg that should support you indefinitely. Work becomes optional. That’s right, you can choose how to spend your days. If you’ve longed for a 3-day workweek, now is the time to make that a reality. If you’ve wanted to do some teaching or research, but had chosen private practice for the better pay, now is the time to explore that academic position. If […]

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My Path to Financial Independence

In My Story, I talked about the life circumstances that led me here, to create this blog after achieving financial independence.  I didn’t give many details as to how that happened financially.  I didn’t keep great track along the way, and didn’t know 10% of what I now know about personal finance, but I’ll do my best to recreate my path. I could go back, way back to 1st grade, when I dominated the Iowa Basics.  Or the glorious junior high days, when I was a star mathlete.  Sadly, that’s not a typo.  But what matters is that I did well […]

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“It’s Good To Be King” The Benefits of Financial Independence

Financial independence is a great life goal with many tangible and psychological benefits.  Before we get into those, it’s important to establish how one determines what it takes to be FI. Know Your Spending Needs   First, you need to have some idea of how much money you need each year to support yourself or your family.  This includes obvious spending on needs such as food, clothing, and shelter.  It should also include spending on insurances, (some) taxes, and perhaps fees paid directly or indirectly to a financial advisor.  As for taxes, I would include property taxes of course, and […]

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What Do You Mean, “On FIRE”?

I am the Physician on FIRE.  No extinguishers required, I’m not about to stop, drop, or roll.  In this case, FIRE is an acronym, as in, Financial Independence, Retire Early.  I discovered the acronym about a year ago, and learned that a whole bunch of good people on the internet have been dispensing valuable information on these two separate, but related topics of Financial Independence and Early Retirement.   Why the Physician on FIRE blog?  After all, there are hundreds of personal finance blogs, with dozens focusing on early retirement. Well, I’ll be coming at you from the perspective of […]

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