Celebrating Financial Independence Wins Along The Way

When we signed the closing paperwork last year to sell our entire Indy rental portfolio, I happened to be speaking at a business conference. When my colleagues figured out that I was dashing in and out from my presenting duties to take care of a closing, I was met with several high-fives and other forms of congratulations, since for many people, a real estate transaction is a major milestone.

Unfortunately, I was so flustered with the multitasking I didn’t take any time to savor.

Since then, we have hit other milestones – we finally updated our estate planning starting last December, we shifted our paper asset portfolio to move from straight buy-and-hold to a Tactical Asset Allocation approach, we recently opened new bank accounts at a local credit union. These tasks don’t seem as fitting for a round of celebration as closing a real estate deal.

However, any accomplishment that gets your financial house in order is a cause to celebrate.

• Clarity with your finances is one big step towards FIRE.
• Having an estate plan that is current to our life situation ensures that our loved ones are financially cared for – no point in hitting FIRE if you can’t share it.
• Changing our paper investing strategy is part of ongoing risk management – it’s not just what you earn but what you keep.
• Switching banks is about prioritizing good service regarding time and money.

Our original bank was great up until a few months ago when service really started to slip and we had to spend more and more time fixing mistakes and overseeing our own money. While we never lost money (all banks are paying next to nothing on deposit accounts), the time and aggravation is still a cost!

It’s important (and fun) to celebrate a variety of FIRE wins along the way, not just the end goal of generating enough passive income to cover expenses or saving 25 times your annual expenses or whatever metric you are using to define FIRE.

A great way to celebrate your wins is with a bottle of wine, and an even better way to enjoy your celebration bottle of wine is with a custom wine label specific to your accomplishment! To that end, we have created a set of custom wine labels to celebrate financial independence wins, which you can print right at home – check it out in our Etsy shop!

Celebrate getting started

1 – Deciding to take the FIRE journey is absolutely a milestone. That day can become an anniversary you celebrate each year by checking in on your status. You can sign a contract with yourself to prioritize FIRE in how you manage your money and career.

2 – Automating bill payments is another way to get started. Inputting all your payments into one place is a great way of getting clear about your spending. Automating also ensures you don’t miss a payment. If you have a bank that includes online bill paying for free, you also save the postage costs!

3 – Automating your savings ensures you pay yourself first. Some employers will allow your paycheck to be deposited into two accounts – you can put 10% in savings and the rest in checking. Or your bank may offer the option of regularly scheduled transfers in between accounts. You could earmark 10% of your paycheck to sweep into savings every time you get paid.

4 – When you save enough to cover three months of expenses, that funds a basic emergency fund – and another milestone to celebrate.

5 – In addition to an emergency fund, build a dream fund. These are savings that go toward a bigger goal, such as buying a home, going back to school or starting a business.

6 – Becoming location independent – i.e., you can work from anywhere – isn’t required to achieve FIRE. However, it helps a lot if geo-arbitrage (living in a cheaper location while earning in a higher-paying location) is one of your strategies. Working remotely can also help by giving you more autonomy over your time. The time you save from commuting can be used to squeeze in some errands (such as opening a better bank account) or to work on a side gig. Even if your employer doesn’t have a formal remote work policy, you can negotiate for flexibility in your location and schedule.

Check out all of our custom wine labels that celebrate financial independence wins.

Celebrate increases in income

7 – Starting a side gig to bring in extra income is one way to turbocharge your emergency fund, dream fund or otherwise pad your FIRE account. You probably already have an expertise or skill that is marketable, so you can make money from what you already know.

8 – Without a side gig, you can also look to your existing job for more income. Ask for a raise, and save that differential if you get it. If you’re a freelancer, negotiate higher fees from your clients.

9 – Increase your retirement plan contribution, if you’re not already maxing it out. If you haven’t been contributing enough to get the company match (if your employer offers that), you’re leaving free money on the table!

10 – Your employer might offer tuition benefits or professional training that can enhance your skills and move you up to a better paying level. Or a new skill that you develop can make you eligible for a better paying role.

11 – If you can’t make more money in your current job, consider finding a better paying job. If you have worked at the same place for a long time, your salary may not have increased as fast as the outside market, and you could be underpaid. Sometimes you can get your current employer to mark you back to market, but sometimes you can make more money by leaving.

12 – You can also find money, instead of making it. Declutter your home and sell items you no longer need. Don’t forget high-ticket items like a car, electronics or sports equipment.

13 – Buying a rental property is another step to increasing your income. Yes, there is an upfront investment – money for the down payment and closing costs, time to find and close the deal. However, this is an expenditure that pays you back over time, and if you buy smartly, you might make your money back at closing. For example, if you identify an undervalued property – buy something for $50k that is worth $100k – you could turn around and refinance all your money out and then some. Or, if you buy with a money partner who supplies the down payment and closing costs while you find the property and manage the rental, then you could profit from the first day of rent if you find a place that covers all the monthly costs with enough to split between you and your partner.

Check out all of our custom wine labels that celebrate financial independence wins.

Celebrate cutting expenses

14 – When you pay off loans – student debt, car loan, mortgage — celebrate that accomplishment!

15 – Paying off credit card debt should be the first priority as this debt is typically the highest interest rate.

16 – You can also find regular expenses to eliminate – media subscriptions, memberships – and celebrate each one or when the costs saved hit a specific target, say $100 or $1,000.

17 – Negotiate a lower price and celebrate the extra money that can towards your FIRE fund. Your cell phone or cable provider might be able to put you into a new plan that saves money. Even if the plan is earmarked for new customers only, you can always ask!

18 — Negotiating a lower interest rate on your credit cards will help you save money each month, or help you pay off your balance faster if you continue to pay as much as you were before. Finding a 0% balance transfer offer can turbocharge the payoff – just watch out for balance transfer fees and be mindful on when the 0% offer ends.

19 – Optimizing your insurance for your home or renters coverage, car insurance, even life insurance is another way to save. You might find the same coverage for a lower cost, and pocket the difference. Or you might find better coverage for the same price, and while you wouldn’t have money in your pocket you would have increased peace of mind.

20 – Enjoying what is free and/or discounted all around you is another way to live well but still save. When we moved to Florida, I spent a couple of hours researching the different cultural sites, parks and other attractions to find days when admission was waived or discounted and other perks. We keep a running list of potential excursions, so we never default to shopping or otherwise spending money just because we don’t know what else to fill our day with. The next time you check something off your free excursions list, spend the difference on a celebratory glass of wine!

Celebrating small wins gives you momentum

With the wins racking up, you’ll be encouraged to keep going. If you do celebrate the wins with some wine or a gold star on your calendar when you hit a milestone, the reward is reinforcement to do more.

And why not celebrate those wins with custom wine labels – check them out in our Etsy shop!