What advices to give to young person starting in his work life to achieve FI?

Dear all,

I believe in coaching process of younger people, for them not to make the same mistake that most of us made I one point of our life. So, this post is dedicated to give some basic rules to achieve FI in the best condition and the fastest:

1st rule:

To have a budget of income and expenses! This is one of the key success criteria. If you don’t know how much you spend and especially in what, you will loose the game.  You need to categorize expenses that will help you identifying where you can cut to add some extra savings.

2nd rule:

Avoid by all mean to have debts, that can be credit card, student loan, leasing, etc. It is tempting to buy the new IPhone, a bigger tv, a new home a bigger car as oil came down, but it will have clear consequeneces on you ability to achieve FI.

My father used to tell me that if you want to buy something you must have the money in your wallet, otherwise don’t buy and wait for the moment you get the cash, it will be even more fun to have this new good!

3rd rule:

Define automatic saving transfer from you salary account (same day you receive the check) to your saving account or any tax advantage plan (3rd pilar for us in Switzerland), this one should be max-out to the maximum allowed amount to benefit from the tax reduction.

4th rule: 

Start investing in equities, you can put 85-90% of your savings, the rest should be cash position. Don’t be afraid to take some calculated risks, you have at least 30 years in front of your! The market shows that growth always happened.

Invest in strong business with high dividend pay out.

5th rule:

Start looking at the fantastic blogs talking about Financial Independence that you can find. In EU there is more and more followers that give you different investing perspective and advice.

6th rule:

Create your own blog with your objectives, that will help you tracking your progress and allow to receive advice from peers.

7th rule:

A frugal life is one of the key aspect of FI sucess, you cannot consume everything, you need to plant some of seeds your receive to make it a beautiful garden in the future. Rome has not been build in one year, or ten years it is centuries of hard work.

I am pretty sure that we can find some other rules or sub-rules, but if everybody would received these simple rules like Moses received the stone commandment with their Diploma, we would have less people in negative territory.

Please let me know if something is missing, so that I can improve this post!

Cheers, RA50


4 thoughts on “What advices to give to young person starting in his work life to achieve FI?

  1. Buy a real estate investment before buying a car. Learn to master the game of leveraging, but stay out of the bubble :). You pretty much hit all the good points. Young people should see the compounding graph. Take a few business and economic courses even if they are art or science major (invest in education), invest in their own health, mental health, family (having a strong support will get them further than no support),


    • Hi Vivianne,

      Agree with you it is another advice to consider, from the average Swiss people to invest in Real Estate, it is very complicate due to prices of the goods, an new apartment of 100 square meters, will cost be 600k up to 1.3mio USD.
      Knowing that the personal fund must be between 20%-30%, limit the acquisition of real estate.
      For the business/economic courses, I fully support you.

      Thanks for passing by and dropping your thoughts.



  2. Good advices, RA50. You pretty much include all the good points. Young people should realize the power of compounding. Investing in dividend stocks and re-invest the dividends help a lot to achieve FI.


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