You need income. The higher, the better but any income can work if you’re diligent. For most people, the key to driving income growth will be to develop their careers but others may develop a business or side business to grow their earnings.
You must spend less than you earn. It’s vital. Even if you make $1 million a year, if you spend it all you won’t get to FI. You need to control expenses to maximize the difference between income and spending (within reason, of course. You don’t have to be frugal to the point of hating life).
You take your savings and invest to grow it. While I opt for index funds, exchange traded fund and single stocks, there are many other ways to invest for success.
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MEET Index Tracking ETF
ETF : State Street SPDR [SPY]
The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500Â® Index. The Trust seeks to achieve its investment objective by holding a portfolio of the common stocks that are included in the index (the âPortfolioâ), with the weight of each stock in the Portfolio substantially corresponding to the weight of such stock in the index.
ETF : Invesco QQQ Trust [QQQ]
The investment seeks investment results that generally correspond to the price and yield performance of the NASDAQâ100 IndexÂ®. To maintain the correspondence between the composition and weights of the securities in the trust (the "securities") and the stocks in the NASDAQ-100 IndexÂ®, the adviser adjusts the securities from time to time to conform to periodic changes in the identity and/or relative weights of index securities. The composition and weighting of the securities portion of a portfolio deposit are also adjusted to conform to changes in the index.