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How to Achieve Financial Independence and Retire Early
In 2004, deep in financial debt, Roth resolved to turn things around. Reading every money book he could, and putting that knowledge into practice, he dug himself out of debt and built enough wealth to retire early. He is now, at the age of 51, financially independent—and on a mission to help others achieve financial freedom, too. No gimmicks, no games. Just proven methods that work.
In Financial Independence, Roth takes you inside the trending world of financial independence and early retirement, giving you the tools both to achieve financial independence and to improve the quality of your everyday life. You’ll explore the ins and outs of the “FIRE movement,” a collection of ideas and habits that allow people to manage their money so they can quit working while they’re young. You’ll consider the shockingly simple math behind financial freedom. You’ll also examine the philosophy and psychology of how—and why—we spend, save, and invest.
Financial freedom is possible. And no matter what your goals are, these 10 lessons will bring you closer than ever to achieving what that freedom means: happiness, fulfillment, and a rich life.
In Financial Independence, Roth takes you inside the trending world of financial independence and early retirement, giving you the tools both to achieve financial independence and to improve the quality of your everyday life. You’ll explore the ins and outs of the “FIRE movement,” a collection of ideas and habits that allow people to manage their money so they can quit working while they’re young. You’ll consider the shockingly simple math behind financial freedom. You’ll also examine the philosophy and psychology of how—and why—we spend, save, and invest.
Financial freedom is possible. And no matter what your goals are, these 10 lessons will bring you closer than ever to achieving what that freedom means: happiness, fulfillment, and a rich life.
Audiobook
Published February 16, 2021
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Displaying 1 - 30 of 56 reviews
December 19, 2021
Having read How to Achieve Financial Independence and Retire Early by JD Roth, The Great Courses Narrated by JD Roth Audible original made me rethink my living and spending and also earning. However, not everything in life is about money; there are other aspects to reconsider, such as personal happiness and family, and I agree with the author. First decide, then plan, and act. I find it helpful and friendly advice to alleviate your future financial stability.
August 29, 2022
Never can get too much advice on how to save money and retire early.
Free from audible for those who are members.
Free from audible for those who are members.
May 19, 2022
Easy-going introduction to FIRE (Financial independence, retire early). Although each individual chapter was obvious, it was interesting to pull them together. In particular, the idea that the % of your income that you save determines when you become financially independent. Apparently some people hit 90%, which means they get 9 years of retirement for each year worked. No-one had ever explained it that way. In general, Roth is much more focused on frugality as a route to independence instead of investment returns.
The chapter on working out what you want is probably the most important and least well-developed. If your life-goal is to pirate media and eat beans for the rest of your life, then you'll become independent fast. But I'm not sure that's a life worth living. Equally if you follow untrammeled consumerism, you'll be working for a very long time. My inclination is much more towards the legume life, and I have to will myself to break out of it. Still, there's a lot to be said for paid side projects, cheap hobbies, and work travel. Right now, my goal would be to have a second home somewhere quiet full of bikes and books that friends and family could stay at, and then have (rent?) somewhere small-ish in the city that I work. But before that, I'll keep traveling and saving.
The chapter on working out what you want is probably the most important and least well-developed. If your life-goal is to pirate media and eat beans for the rest of your life, then you'll become independent fast. But I'm not sure that's a life worth living. Equally if you follow untrammeled consumerism, you'll be working for a very long time. My inclination is much more towards the legume life, and I have to will myself to break out of it. Still, there's a lot to be said for paid side projects, cheap hobbies, and work travel. Right now, my goal would be to have a second home somewhere quiet full of bikes and books that friends and family could stay at, and then have (rent?) somewhere small-ish in the city that I work. But before that, I'll keep traveling and saving.
November 22, 2021
I'm making myself stop reading this because this book is so dramatic for no reason!! I'm dramatic too now because I think it gave me a panic attack.
I got to lecture 2 and it's all philosophical in hopes of finding your true purpose to make money... By asking what would you do it you died in 6months/ 1 month /24 hours?... I'd do absolutely nothing and just stay with my friends and family.. No goals whatsoever, no purpose, I wouldn't care... Then he moves on with the bubbly music to tell you how to make money to reach those goals.
Just to say, I am an investor, have a lot of goals and dreams and I am on track retire early myself but this really made me not care about money and have no desire to think about my dreams anymore
No idea how a financial book made me so sad but I highly not recommend this!
I got to lecture 2 and it's all philosophical in hopes of finding your true purpose to make money... By asking what would you do it you died in 6months/ 1 month /24 hours?... I'd do absolutely nothing and just stay with my friends and family.. No goals whatsoever, no purpose, I wouldn't care... Then he moves on with the bubbly music to tell you how to make money to reach those goals.
Just to say, I am an investor, have a lot of goals and dreams and I am on track retire early myself but this really made me not care about money and have no desire to think about my dreams anymore
No idea how a financial book made me so sad but I highly not recommend this!
November 5, 2022
This is really great, inspiring, practical and easy to follow. The downside is that it is 100% USA focused. The tools and examples are all based on a person living in the US. Also, it doesn't consider the challenges of a single parent. A lot of the examples are of people who can easily reduce and control their spending - they aren't paying for braces or education or all of the wants and needs of another human being. Still, great info and I'll likely return to it.
September 13, 2024
This was good! I didn’t find I personally learned anything new but this is a great starting point for the principles of saving and investing! He keeps it simple and fact based, setting reasonable expectations and clear paths forward for financial independence.
August 23, 2021
Although very short for an entry in The Great Courses, this is quite interesting.
I have to say, the author sounds more like an Internet marketer than a lecturer, especially with all the talk about the "FIRE movement" (Financial Independence, Retire Early). I half expected that at the end he would provide a limited-time offer on an expensive information product. But such is not to be the case. He seems genuine about actually wanting to help people improve their financial situation, and there's no obvious way he directly benefits from it (except, of course, that I assume he benefits from sales of this audiobook). The site he cites, http://moneytoolbox.com/, simply provides extra links and visuals for each chapter of the book.
I strongly dislike his use of the "red pill" terminology. Not that I have anything against The Matrix, mind you. And although I think using escaping The Matrix is a bit of a cheesy metaphor for encouraging people to save for retirement, that only annoys me a little bit. It's not that. It's just that someone really needs to tell the author that "taking the red pill" is used by the alt right to refer to adopting conservative extremist views. I'm pretty sure that's an association he doesn't want.
Anyway! I expected the content would be pretty basic. Although far from an expert, everything I learn about personal finance boils down to the same things: don't spend money you don't have. Pay off credit card debt. Put aside money equal to six months of expenses in case of emergencies. Save as much money as you can for retirement, and get started as early in life as you possibly can. If your company offers a 401(k) with matching, invest at least enough to get the full match. Invest additional money in an IRA or Roth IRA (the author recommends Roth). Then invest additional money in low-cost index funds, generally ones with a mix of stocks and bonds designed to reduce risk as you near retirement age. Basically, ignore people telling you to buy gold or invest in a specific company or who offer other flashy, risky advice - this same general, boring but effective, plan is what you hear over and over.
And that is what you get here. But there's more as well. There's a good section on seriously considering your life goals. The author points out that it's far more effective to reduce expenses in the big things (housing, transportation, food) then to spend huge amounts of effort saving a few bucks here and there on other things (although reducing other expenses can be useful as well).
Note: the author says that investing in residential real estate pays about a 1% return - I'd love to be able to look into his sources more on that, as that seems really low. He also says to absolutely not think of your house as an investment. I think what he means is to not buy a larger house than you need in the thoughts that it will be worth it when you sell the house and move later. But I definitely think that for most people who will be in the same place for more than a couple years that there is value in buying a house and making fixed mortage payments, working towards ownership of a house that is increasing in value, instead of paying rent payments that increase each year and having no ownership. But I suppose that's a personal choice.
He tackles the psychology of personal finance. People's concerns that keep them from saving for retirement, and even some of the challenges some people face when they are further along on the path to financial independence.
There's plenty of good information here. There are plenty of works that cover personal finance as well - if you haven't already read a good one, this is about as good as any other. But I especially find this useful for how motivational it can be. It's definitely useful to read ones like this from time to time to give yourself a burst of motivation.
I have to say, the author sounds more like an Internet marketer than a lecturer, especially with all the talk about the "FIRE movement" (Financial Independence, Retire Early). I half expected that at the end he would provide a limited-time offer on an expensive information product. But such is not to be the case. He seems genuine about actually wanting to help people improve their financial situation, and there's no obvious way he directly benefits from it (except, of course, that I assume he benefits from sales of this audiobook). The site he cites, http://moneytoolbox.com/, simply provides extra links and visuals for each chapter of the book.
I strongly dislike his use of the "red pill" terminology. Not that I have anything against The Matrix, mind you. And although I think using escaping The Matrix is a bit of a cheesy metaphor for encouraging people to save for retirement, that only annoys me a little bit. It's not that. It's just that someone really needs to tell the author that "taking the red pill" is used by the alt right to refer to adopting conservative extremist views. I'm pretty sure that's an association he doesn't want.
Anyway! I expected the content would be pretty basic. Although far from an expert, everything I learn about personal finance boils down to the same things: don't spend money you don't have. Pay off credit card debt. Put aside money equal to six months of expenses in case of emergencies. Save as much money as you can for retirement, and get started as early in life as you possibly can. If your company offers a 401(k) with matching, invest at least enough to get the full match. Invest additional money in an IRA or Roth IRA (the author recommends Roth). Then invest additional money in low-cost index funds, generally ones with a mix of stocks and bonds designed to reduce risk as you near retirement age. Basically, ignore people telling you to buy gold or invest in a specific company or who offer other flashy, risky advice - this same general, boring but effective, plan is what you hear over and over.
And that is what you get here. But there's more as well. There's a good section on seriously considering your life goals. The author points out that it's far more effective to reduce expenses in the big things (housing, transportation, food) then to spend huge amounts of effort saving a few bucks here and there on other things (although reducing other expenses can be useful as well).
Note: the author says that investing in residential real estate pays about a 1% return - I'd love to be able to look into his sources more on that, as that seems really low. He also says to absolutely not think of your house as an investment. I think what he means is to not buy a larger house than you need in the thoughts that it will be worth it when you sell the house and move later. But I definitely think that for most people who will be in the same place for more than a couple years that there is value in buying a house and making fixed mortage payments, working towards ownership of a house that is increasing in value, instead of paying rent payments that increase each year and having no ownership. But I suppose that's a personal choice.
He tackles the psychology of personal finance. People's concerns that keep them from saving for retirement, and even some of the challenges some people face when they are further along on the path to financial independence.
There's plenty of good information here. There are plenty of works that cover personal finance as well - if you haven't already read a good one, this is about as good as any other. But I especially find this useful for how motivational it can be. It's definitely useful to read ones like this from time to time to give yourself a burst of motivation.
April 23, 2024
Great book and good tips!
April 11, 2021
Short and capable survey if the FIRE methodology.
August 23, 2023
Fire goal = 25 x yearly lifestyle spending
What does it mean to be rich. What does wealth mean to you?
Think about the first messages you received about money as a child. What's your strategy. Save, or be care free knowing you'll make more along the way?
If you're in a relationship with money. How is it? Dysfunctional? Who's in control. What is one step you can take to improve it.
Mission statement : list everything. Spend 5 mins on each and write everything. On a new page
1) What are my life time goals. Find 3 answers most important to you
2) How will I spend the next five years. Circle
3) how would I love if I knew I'll die in 6 months?
4) most important goals. Merge things
Is there a theme. Draft a personal mission statmernt. Write a paragraph. This should motivate you in good times and bad.
Don't be an unhappy miser by having a single minded pursuit of money. Have a plan. Then financial freedom becomes meaningful
Use the word profit instead of savings.
Housing and transportation are major spemdings. Cutting small subscriptions helps but bigger spend cuts are better.
Your house is not an investment.
Picking individual stocks is gambling.
Spread the risk and owe more than one stock. Use index funds
Keep costs low. Mutual funds with lower costs earn more. Actively managed funds underperform through history and passive costs less to run.
Own the entire market with no research needed at all. Don't try to time the market. Ignore advice and financial news.
Conduct an annual review and see if it relates to your long term plan and include tax implications.
Take a less tiring job like consulting when you retire if you have a scarcity or catastrophe mindset. That way you'll always have a source of income
What does it mean to be rich. What does wealth mean to you?
Think about the first messages you received about money as a child. What's your strategy. Save, or be care free knowing you'll make more along the way?
If you're in a relationship with money. How is it? Dysfunctional? Who's in control. What is one step you can take to improve it.
Mission statement : list everything. Spend 5 mins on each and write everything. On a new page
1) What are my life time goals. Find 3 answers most important to you
2) How will I spend the next five years. Circle
3) how would I love if I knew I'll die in 6 months?
4) most important goals. Merge things
Is there a theme. Draft a personal mission statmernt. Write a paragraph. This should motivate you in good times and bad.
Don't be an unhappy miser by having a single minded pursuit of money. Have a plan. Then financial freedom becomes meaningful
Use the word profit instead of savings.
Housing and transportation are major spemdings. Cutting small subscriptions helps but bigger spend cuts are better.
Your house is not an investment.
Picking individual stocks is gambling.
Spread the risk and owe more than one stock. Use index funds
Keep costs low. Mutual funds with lower costs earn more. Actively managed funds underperform through history and passive costs less to run.
Own the entire market with no research needed at all. Don't try to time the market. Ignore advice and financial news.
Conduct an annual review and see if it relates to your long term plan and include tax implications.
Take a less tiring job like consulting when you retire if you have a scarcity or catastrophe mindset. That way you'll always have a source of income
February 7, 2024
For those who want a sparksnotes version of thie book, I asked ChatGPT to give me financial advice and the result it had was basically followed to the letter by this audiobook.
The audiobook had some perfectly timed "fluff" to paint a clear picture of the more more technical jargon like mutual funds, index funds. There was an interesting journal prompt at the beginning and end of it, which I recommend revisiting monthly after finishing this audiobook.
Recommended to go at a pace of 1 lecture per day. Recommended to those who want a foot-in-the-door approach to retirement planning.
April 17, 2021
How to Achieve Financial Independence and Retire Early serves as a comprehensive and concise introduction to the concepts of financial independence and early retirement. J.D. Roth explains the basics of the FIRE movement (and often goes well beyond the basics) while keeping the content accessible and not getting lost in the weeds with overly complex math or too much financial jargon. At just under five hours, it is a really quick listen, but definitely a keeper--I can see myself going back and re-listening to certain chapters in the future.
I would recommend this to anyone who is curious about retiring early/achieving financial independence but may feel overwhelmed by the amount of information out there. This Audible "Great Course" is a great place to start.
2021 Reading Challenge Category: A book by a blogger, vlogger, YouTube video creator, or other online personality.
I would recommend this to anyone who is curious about retiring early/achieving financial independence but may feel overwhelmed by the amount of information out there. This Audible "Great Course" is a great place to start.
2021 Reading Challenge Category: A book by a blogger, vlogger, YouTube video creator, or other online personality.
April 28, 2024
This is a good introduction to the concept of F.I.R.E. (Financial Independence, Retire Early). It’s for beginners. If, like me, you've read a fair number of blog posts about FIRE, then it probably isn't that useful.
It explains basic concepts like the 4% rule or the value of investing in mutual index funds. It also explains why people are drawn to the idea of financial independence and offers exercises to help one become aware of the flawed mental scripts one may have internalised about money.
It explains basic concepts like the 4% rule or the value of investing in mutual index funds. It also explains why people are drawn to the idea of financial independence and offers exercises to help one become aware of the flawed mental scripts one may have internalised about money.
March 3, 2022
I think this was a great intro into the concepts of the FIRE movement.
I did already know most of them since I've been reading about and practicing a lot of those concepts for a couple years now. But I do think it would be an excellent place to start for a lot of people. And I still enjoyed even though I knew a lot of it already.
I did already know most of them since I've been reading about and practicing a lot of those concepts for a couple years now. But I do think it would be an excellent place to start for a lot of people. And I still enjoyed even though I knew a lot of it already.
December 28, 2023
Solid retirement planning course presented in 10 building-block lessons which are easy-to-understand and applicable to ordinary people. The course is geared towards those who are in the early stages of saving for retirement, but the course is also of benefit to those of us nearing or already in retirement.
April 23, 2021
There is a chapter at the end that focuses on the value of time vice money—I’m glad it was in there.
This is not a hard concept to understand, it is just hard to execute. I was hoping for a few tidbits to take away but it was a retread of basic economic principles.
This is not a hard concept to understand, it is just hard to execute. I was hoping for a few tidbits to take away but it was a retread of basic economic principles.
July 17, 2021
One thing I appreciate about the FI movement is that they encourage you to get really clean on your vision and purpose in life. It’s not about becoming Scrooge McDuck - it’s about living a rich life that invests in others.
October 15, 2021
Nothing new if you've read other FI books but I liked how he brought in and included references and mentions to other books. I also found the exercises quite useful. Beware though - this is quite American focused as tends to be the case of other books on this topic.
October 17, 2021
Excellent and pragmatic step by step guide on achieving FI, recognizing how one can get discouraged easily along the way
Very similar in principle to "Your Money or Your Life" by Vicki Robin but with interactive reflective exercises in this book
Very similar in principle to "Your Money or Your Life" by Vicki Robin but with interactive reflective exercises in this book
December 9, 2021
A solid and lay-friendly introduction to both (1) basic personal finance topics and (2) the FIRE mentality. I wouldn’t recommend reading if you’ve done a moderate amount of FIRE research, but I’ll definitely be gifting this book to college (and high school) grads.
December 27, 2021
I listened to this book for free on Audible. I found it to be a good overview of the Financial Independence and Retire Early (FIRE) movement. I would recommend it to anyone looking to learn more about FIRE and take next steps towards achieving it.
February 4, 2024
This audible original by J.D. Roth is one of the audiobooks I consider legendary. If I were to write a book about F.I.R.E. this would be it. This will always be one of my first suggestions to friends and family who are interested in the F.I.R.E. movement.
April 21, 2024
Get lifetime earnings information from income tax portal. Calculate all your assets and liabilities. Net worth/total earnings is called Wealth to earnings ratio. Down size on House and car.
Calculate net worth and track it over years.
Calculate net worth and track it over years.
November 11, 2024
This is an excellent overview of the FI/RE movement. It is a great starting point. There is a website for this course that has many resources, including recommendations for further reading. Highly recommended.
April 3, 2021
A lot of great advice. Some I already knew, some not and some new way of looking at things. Worth the read.
June 4, 2021
The book covers the basics of the FIRE (Financial Independence, Retire Early) movement. Good read for those who don't know about it and good motivation (and reminder) for those who already fo.
June 4, 2021
Quite basic stuff if you’ve read a few investing books. “Repetition is the mother of all skills”, so I am happy I gave it a read.
September 8, 2021
Really straightforward intro to the topic. Everyone should listen to this
October 5, 2021
A fine introduction to FIRE philosophy, How to Achieve Financial Independence and Retire Early will no doubt be an eye-opener for those deep inside the trap of consumerism.
Displaying 1 - 30 of 56 reviews