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BiggerPockets Money Podcast

The Financial Order of Operations for FIRE (Step-by-Step Early Retirement Plan)

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 18 April 2025

⏱️ 41 minutes

🧾️ Download transcript

Summary

Most people chasing FIRE (financial independence, retire early) are doing it all out of order, and it’s costing them years of financial freedom. So, we thought, “What’s the fastest way to achieve FIRE, and which steps would you take if you were starting from scratch?” Today, we’re bringing you a supercharged financial independence plan, sharing the exact financial order of operations that’ll take you from a $1,000 emergency fund to fully-fledged early retirement. We know the steps because we’re reverse-engineering our own paths to financial independence, and we WISH we had done some of these earlier. If you’re a beginner in the FIRE movement, start here and work through these steps to FIRE the fastest. If you’re close to FIRE already or at a significant financial milestone, don’t worry. We have tips you can use right now to retire earlier and avoid the “middle-class trap” that kills so many FIRE dreams. We’re going through retirement accounts, emergency funds, cash-flowing investments, and side hustles to help you earn more. Plus, what to do once you make TOO much money to invest in tax-advantaged retirement accounts. In This Episode We Cover The exact financial order of operations to reach financial independence fastest  The bare minimum emergency fund you should have in your bank account at all times  How to calculate your FIRE number in five seconds so you know your goal What to do when you make TOO much money to invest in a Roth IRA When to STOP investing in retirement accounts to avoid the middle-class trap Moves to make as soon as you’re retired early that’ll make your FIRE last even longer  And So Much More! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-632 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

What if I told you that most people pursuing fire are doing it completely out of order?

0:06.1

The difference between reaching financial independence in 10 years versus 20 isn't just about how much you save.

0:13.1

It's about when you save it.

0:15.3

Today, we're breaking down the exact sequence of financial moves that will supercharge your path to financial independent.

0:26.1

Hello, hello, hello, and welcome to the Bigger Pockets Money podcast. My name is Mindy Jensen.

0:30.7

And with me while Scott trenches out on paternity leave is my friend Amberly Grant.

0:35.3

Amberly, thank you so much for joining me today. Hello, Mindy.

0:38.5

I am happy to be here on this wonderful day in Colorado.

0:41.6

We are so spoiled.

0:42.7

It's like the best kept secret.

0:44.0

I tell people that I live in Colorado, they're like, ooh, isn't it cold there?

0:47.3

Sure.

0:48.1

Nope.

0:48.4

I'm from Ottawa.

0:49.8

I know what cold is.

0:50.7

This ain't cold.

0:52.1

I'm from Wisconsin. That's like Ottawa South. Bigger Pockets has a goal

0:57.2

of creating one million millionaires. You are in the right place if you want to get your financial

1:01.4

house in order because we truly believe financial freedom is attainable for everyone, no matter

1:06.4

when or where you are starting. I think you're really starting to get the hang of that, Amberly.

1:10.6

Another octave lower in your voice and you're going to be Scott's twin. Excellent.

1:15.1

All right. Let's get into today's episode. We want to add a few caveats to this conversation.

...

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