Common Mistakes on the Road to FIRE
The path to financial independence is a long-term process that requires patience and awareness. Mistakes along the way can slow down or even completely stop your progress.
Common Mistakes
Overestimating Income
When planning a budget, many people make the mistake of overestimating their income or underestimating their expenses. This leads to a lack of savings.
Impulse Buying
Buying things that do not bring long-term benefit can significantly slow down your savings.
Lack of Diversification
Investing in one asset (for example, only stocks or only real estate) increases risk.
Ignoring Inflation
Money that just sits in an account depreciates over time. It is important to invest it in order to preserve and increase capital.
How to Avoid Mistakes Review your plans and analyze your expenses regularly.
Consult with investment experts.
Create a safety net for unexpected circumstances.