Chapter 6: Focus on savings before earnings
Aussie FIRE | Financial Independence Retire Early
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How to Increase Your Income to Reach Fire
There comes a point of diminishing returns for both saving money and investing. The purpose of this chapter is to explain how beneficial it is to spend more time and energy increasing the amount of dollars that flow into your account. It's true that fire is income agnostic, meaning two people with a savings rate of 65% will reach fire roughly in 10 years. Let's try and apply the same metric to the three most important focus areas, in my opinion, when it comes to reaching fire. Save more than you earn, increase how much you earn, and invest your savings. We'll call this metric BfYB that stands for bang for your buck.
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