Take your first steps and start building.

4min Read ⏰

For me, financial independence (FI) is about maximising an opportunity, not about constant sacrifice or penny-pinching. If you’re like me and aiming for FI, here are my five essential steps to take that will help you reach your goals while living fully.

1. Maximise Earnings in Your Day Job

Your primary income source is a huge asset, so let’s make it work harder for you. When you focus on increasing your skills and becoming an invaluable asset in your role, you not only boost your income but also open doors for greater career opportunities. Whether it’s negotiating raises, taking on projects that lead to promotions, or even changing roles, actively growing your earnings is a powerful step toward FI.

How to take action: Make sure to have productive annual reviews and come prepared! Speaking about inflation and cost of living is not enough. You must align your performance with its impact on the business to make a strong case. And remember, often changing roles is the quickest way to increase your earnings.

2. Cap Costs & Play Defensive

Spending less doesn’t mean living less. It’s about keeping expenses in check and avoiding lifestyle creep once you’ve secured those salary increases. Consider capping expenses in certain areas, like dining out or entertainment, or choosing set spending amounts that work within your budget and goals. And make sure you know your burn rate (fixed monthly costs) to the penny. This will let you enjoy life while maintaining control over where your money goes.

With all of that extra cash laying around, you now need to increase your savings rate. My goals for this are built around a simple structure -

• €/$ 1,000 cash emergency fund

• 3x monthly earnings

• 6x monthly earnings

I’m not quite there yet filling these buckets, but having the funds in place will offer security against urgent needs (dental care, car repair etc.) or bigger life events (redundancy, serious illness, etc.).

How to take action: Start saving. I use pockets on Revolut for segmentation, but fnd something that works well for you. Identify one area of discretionary spending where you can set a limit. For instance, a set dining-out budget each month lets you indulge without overspending.

3. Pay Down Debt

Debt can weigh down even the best financial plans, so eliminating it is crucial on the path to FI. High-interest debt like credit cards or personal loans eats away at potential investments, which is why paying off debt is a top priority. Think of each debt you pay off as buying back a little more financial freedom.

Start with the highest % rate and smallest amounts first. Smaller amounts, being easier to pay off can help with a sense of progress and achievement. Paying down your higher rate loans will pay off in the long run and it’s important not to delay this in search of smaller goals. Balance is key.

How to take action: Create a list of your debts, prioritise them by interest rate and remaining balance, then develop a repayment plan—whether it’s the debt snowball (paying off smallest balances first) or avalanche method (tackling high-interest rates first) or a mix of both (50/50 against each). Choose the best approach with a balance of effectiveness and peace of mind.

4. Invest for the Long Term

Long-term investing is where FI really starts to take shape. It’s about making your money work for you, so over time, your investments grow into a reliable source of passive income. Instead of trying to time the market, the goal is consistent, diversified investing. This might include index funds, dividend stocks, or real estate—whatever aligns with your goals and risk tolerance.

If you don’t already, get to understand compounding. A simple calculator this like this one can be a really helpful resource. We will look at investment strategies in a future issue, but for now think about long-long term (pension), long term (index funds or similar) and medium term (higher risk assets) as your key elements. Any higher risk investments should always take up a smaller % of your portfolio.

How to take action: Set up automated monthly contributions to your investment accounts. Start with an amount that feels manageable, and increase it over time as your income grows. Maximise your pension contributions and make the most of your employer match scheme, if there is one in place.

5. Develop Additional Income Streams

Relying on one source of income is limiting. To build true financial independence, aim for multiple income streams, whether it’s through side hustles, investments, freelancing, or passive income sources. This diversification not only grows your overall income but also adds security to your financial plan.

Note: Keep an eye out for our upcoming post on the “7 Income Streams Theory” to explore ways to add more sources of income!

How to take action: Identify one potential income stream to explore. It could be investing in dividend stocks, renting out a space you don’t use, or starting a small side business that aligns with your skills. I have always found that understanding Ikigai is a great starting point to generating side hustle ideas. This is idea is simplified in the image below.

By maximising your earnings, managing your costs, paying down debt, investing for the long term and adding extra income streams, you’re setting yourself up for a financially independent future in a sustainable and empowering way. Remember, financial independence is about choices, not restrictions—it’s about creating a life that aligns with your goals and values, every step of the way.

Appreciate you all.

Jamie

P.S. Patience is Key
None of these steps guarantee immediate success or overnight riches. Financial independence is a long game and these foundations will need time and consistency. Stick with it—small actions now create a solid future and improve your life along the way.

^{NOTE: I am not a financial advisor, planner or have any formal healthcare education. &Prosper is simply a way for me to share my own journey and offer resources I have found useful. With this, I am starting from near zero and I hope to show that anyone can significantly improve their health and financial wellbeing.}