10 Top Tips from My Roller Coaster Ride to Financial Freedom

If you want to successfully reach financial freedom, know these key lessons – especially this one – the only ones that get hurt on a roller coaster are the ones that try to get off in the middle of the ride!

Any wealth building plan whether it involves individual stocks, ETFs, retirement accounts or property investments –will have up and downswings that make you want to bail before you reach the finish line.

How to Reach Financial Freedom Faster: 10 Tips That Actually Work

Early retirement sounds like a dream, right? Sleep in, ditch the alarm clock, and finally spend your time your way. But getting there takes more than daydreaming—it takes intention, discipline, and a bit of courage to ride out the bumps. The good news? It’s absolutely doable. These are the 10 most powerful tips I’ve learned (and lived!) on the road to financial freedom, and the mistakes I’ve learned from along the way.

Whether you’re just starting your journey or you’re already deep in the game, these tips will help you stay focused, avoid costly detours, and keep your eyes on the prize: freedom.

Visualize and Rehearse Your Future Life
Know what you’re retiring to, not just what you’re retiring from. Build a purpose-filled post-work life.
Know Your FIRE Number
Calculate how much you need to retire early based on your annual expenses and desired withdrawal rate (e.g. 25× expenses for 4% rule).
Track Every Dollar
Use budgeting apps or spreadsheets to see where your money goes—and take back control.
Save Like It’s a Sport
Aim to save 25%–50% of your income. The higher your savings rate, the faster you can buy your freedom.
Max Out Tax-Advantaged Accounts
Supercharge your savings by using 401(k)s, IRAs, HSAs (U.S.) or Supers (Australia) to grow wealth and minimize taxes.
Eliminate High-Interest Debt
Credit card debt is the enemy of early retirement. Pay it off aggressively—it’s a risk-free return!
Boost Income Strategically
Negotiate raises, switch to higher-paying roles, house hack, or launch a side hustle. More income = more fuel for investing
Don’t Pay Advisors a % of Your Portfolio
Fees that seem small—like 1%—can eat up 25% or more of your returns over time. Choose fee-only advisors or DIY with confidence.
Invest Wisely and Consistently
Put your money to work in low-cost index funds. Automate contributions and let the magic of compound growth do the heavy lifting.
Stay the Course—Don’t Give Up
You’ll make mistakes. I did too. Learn from them, course-correct, and keep moving. Quitting is the only real failure.

Visualize and Rehearse Your Future Life

Know what you’re retiring to, not just what you’re retiring from. A purpose-filled life makes early retirement meaningful and sustainable. Don’t just dream about early retirement—picture it in detail. What will your days look like? What will give you purpose? Having a clear vision makes it easier to stay motivated during the saving years and ensures that your freedom years are rich with meaning, not just time to fill. Figure out what living a rich life means to you.

After 30+ years in the corporate world and a few years running a real estate business, I’m now living my dream of financial freedom… Splitting time between the beaches of Australia and the US, volunteering at a wildlife hospital caring for koalas, and spending a few hours a week supporting real estate agents and clients back home with a real estate pricing tool I built.

💡 Top Tip: Instead of starting with “How much do I need to retire?”, ask yourself “What kind of life do I want?” Knowing what you’re retiring to gives your plan direction and your journey meaning.

Know Your FIRE Number

Your FIRE number is the magic target that tells you how much you need to retire early. If you don’t know where you’re headed, you have no destination, and you’ll never reach it. A common rule of thumb is 25 times your annual expenses, based on a 4% safe withdrawal rate. Knowing your number gives you a clear destination and helps you stay focused through the ups and downs.

This product allowed me to calculate my financial freedom number with enough confidence to retire years earlier than planned! Priceless value.

It’s an affiliate link—I’ll earn a small commission if you buy

Here’s an example for someone spending $80,000 a year and using the 4% “rule”.

Knowing your “enough” number allows you to enjoy life fully—where money supports your journey, rather than controlling it.

Without this number, you’re driving blind. Spend too much, and you’re stressed. Spend too little, and you miss out on life’s joys out of fear of running out of money.

Track Every Dollar

It’s impossible to improve what you don’t measure.

I love spreadsheets so this one comes naturally to me. But not everyone does. And for all those people, there are now dozens of budgeting apps to do the hard work for you. You’re likely using digital transactions from your bank account and credit card for most of your payments, making tracking these super easy. Don’t delay just because you’re afraid of what you’ll find—knowledge is power. Once you see where your money’s actually going, you can start making intentional changes that move you closer to financial freedom.

Even my teen daughter recently learned this firsthand. She started tracking her spending for the first time and was blown away to discover she was spending $35 a month at the school tuck (Aussie slang for snack) shop—mostly on one item: their caramel slice. She absolutely loves it. So we turned it into a teaching moment and a fun family ritual. I pulled out her grandmother’s old recipe for caramel slice, and now she makes a batch every Sunday night. Not only is she saving money, but she’s also carrying on a sweet family tradition—literally. And yes, her homemade version tastes even better.

You can use apps like YNAB, Pocketguard, Monarch or try a free, simple spreadsheet to track your spending. Awareness is powerful—it helps you cut out waste, stay on budget, and redirect money toward your freedom fund.

💡 Top Tip: Swap the spreadsheet for a budgeting app—it’s faster, easier, and keeps your spending insights at your fingertips, anytime, anywhere.

Save Like It’s a Sport

Treat saving like a game you’re trying to win—because in many ways, it is. The higher your savings rate, the faster you buy your freedom. Whether you’re putting away 25%, 30%, or even 40% of your income, every extra dollar saved is a dollar that doesn’t have to be earned later. Challenge yourself, track your progress, and celebrate milestones like you would in training. You don’t have to be perfect—just consistent. This is one “sport” where winning means you get to stop playing and start living life on your own terms.

Here’s an example of how much someone earning $100,000 annually could accumulate after 30 years, assuming a 6% annual return (after inflation), based on different savings rates.

Yes—increasing your savings rate makes a massive difference over time:

Going from 10% to 20% savings can more than double your end portfolio
Jumping from 10% to 30% can offer you 3× the savings:

In short, small changes now can create massive wealth later—especially when you let time and compounding do their thing.

💡 Top Tip: House swapping can save you thousands on travel. Instead of paying for hotels or Airbnb stays, we trade homes with other families—often in amazing locations. It’s a win-win: they stay in our place, we stay in theirs, and we both save a ton. We’ve easily saved $5,000–$10,000 a year on accommodation costs, all while enjoying spacious and comfortable homes and having a more authentic travel experience.

One of the smartest moves (literally) we made was relocating to a lower cost of living area. Were able to live mortgage-free and significantly cut expenses like property taxes, insurance, and utility bills. Moving from San Francisco to Arizona gave us immediate—and ongoing savings of 30%. Plus, with so many new places to explore nearby, we’ve cut back on costly travel, choosing weekend adventures within driving distance instead of pricey flights. Best of all, we’ve made lifelong friends and found a true sense of community—something money can’t buy.

💡 Top Tip: Moving to a lower cost of living area can unlock financial freedom faster by slashing housing costs and turning everyday life into a local adventure.

Another huge money saver – find out if your mortgage company allows bi-weekly payments. To save money, you need to make biweekly payments that equal one full extra monthly payment per year (i.e. 26 half-payments = 13 full monthly payments per year).

By switching to accelerated biweekly mortgage payments on a $500,000 loan at 6% interest:

You’ll pay off the loan in ~24.5 years instead of 30,
Save over $122,900 in interest,

💡 Top Tip: Paying half your monthly mortgage every two weeks adds up to one extra full payment each year—and can shave years off your loan while saving you thousands.

💡 Top Tip: Every bonus, tax refund, or extra dollar went straight to my mortgage—no exceptions! For Aussie readers: consider using an offset account instead of making direct payments—it gives you the same interest savings while keeping your money accessible, helping you stay flexible and protected in case of emergencies.

I set a goal to be mortgage-free by 50 and hit it by age 51

🛠️ Workaround:

If your lender doesn’t offer biweekly payments, you can still mimic the effect:

Make one extra monthly payment per year (or divide that extra into monthly chunks).
For example: pay 1/12 more each month. This equals the same impact as a biweekly schedule without needing lender permission.

Max Out Tax-Advantaged Accounts

Don’t leave free money or tax breaks on the table. Max out accounts like 401(k)s, IRAs, HSAs (in the U.S.), or Superannuation (in Australia). These vehicles let your investments grow faster by reducing or deferring taxes.

When I first started making decent money, I was focused on paying down debt and building up my emergency fund—which, to be fair, were smart moves. But in the background, there was this quiet little window of opportunity I didn’t even notice: the chance to contribute to a Roth IRA. At the time, I was eligible. I just didn’t know enough to take advantage of it.

I had heard of Roth IRAs, sure—but I didn’t really understand how powerful they were. Tax-free growth? Tax-free withdrawals in retirement? It sounded good, but I was too busy (and a little too financially overwhelmed) to take action. Then, my income started climbing. Promotions, raises, new opportunities. Before I knew it, I had crossed the income limit for Roth IRA contributions.

By the time I realized what I’d missed, it was too late. I had literally left thousands of dollars in tax-free gains on the table. Looking back, I wish someone had sat me down and said, “This is your moment. Use it.” Because once that window closed, it was gone. Sure, there are backdoor Roth options, but they’re more complex and not always accessible depending on your situation. For example, for me now being a dual citizen, I have lost the ability for any Roth withdrawls to be tax free, as they would be taxed in Australia, even though they are tax free in the United States. Be sure to speak to an accountant regarding your specific situation.

💡 Top Tip: Take advantage of every tool while you’re eligible. Especially the ones that let you build wealth tax-free. Because regret is one investment that never pays off.

Eliminate High-Interest Debt

High-interest debt, especially from credit cards, is a huge drag on your wealth. Pay it off as fast as possible. You’ll instantly free up cash flow and earn a guaranteed “return” equal to the interest rate you no longer have to pay. Take it from an ex-banker, credit cards are evil and designed to enslave you.

Take a simple calculation based on the current average credit card balance in the US.

The average cardholder had $6,568 in credit card debt in Q2 2023, up 10% from $5,963 in Q2 2022 according to the latest study from MoneyGeek. If you owe a lot (usually, over $1,000): Your minimum will be calculated based on your balance. Typically, about 2% of the balance.

At first glance you may think, “well if I am paying $130 a month on a $6,500 balance I can pay it off in 4 years”.

WRONG! You need to consider interest, which is on average 21% on credit cards right now. That’s right, 21%!! That’s 12.5% ABOVE the current prime rate.

The prime rate is an interest rate that most commercial banks and other lenders use to set the APR on credit cards, as well as on other types of loans, including mortgages, personal loans and home equity loans. It’s based on the banks costs as well as their desired return.

Credit card companies make the bulk of their money on interest charged to their customers, followed by late and other fees charged, and lastly by transaction fees paid by merchants that accept cards. But the bulk of their revenue is made from YOU.

So how much is that $6,500 actually costing you in money and time?

A whopping $15,582 and 10 years!

You’ll pay back your initial $6,500, but you’ll also pay over $9,000 in interest and it will take you a decade to do it.

You’ll end up paying 40% more in interest than you did for the ‘stuff’.

Use this Bankrate calculator to calculate how much you’ll pay over time and how long it will take you to pay down your current balances using the min payment that banks WANT you to use. The results will likely shock you.

When I was managing card businesses, we did not have to disclose this information about time to pay down when using minimum payments. But now banks are required to do so on the statement thanks to consumer protection regulation. But I know most consumers don’t give the proper attention to their statement.

💡 Top Tip: When it comes to credit cards, the smartest move is simple: steer clear of balances, pay in full each month, and don’t let interest turn your spending into a long-term regret.

Boost Income Strategically

There’s a limit to how much you can cut expenses, but no cap on how much you can earn.

Negotiate a raise, change jobs, pick up freelance work, or explore house hacking. Extra income accelerates your timeline to freedom.

In my early 30s, I decided to try house hacking—and it turned out to be one of my smartest financial moves. I rented out a spare room in my home, which brought in $30,000 a year. I actually enjoyed the company, but let’s be honest—I enjoyed the extra income even more. And I didn’t stop there. Since I didn’t own a car, my garage was just sitting empty, so I rented it out to a guy with a classic car for another $3,000 a year.

That $33,000 in extra income annually from space I wasn’t even fully using went straight into my mortgage and building my financial freedom.

💡 Top Tip: House hacking turns your home into an income-generating asset—helping you build wealth faster, lower your living costs, and even make some great friends along the way.

Don’t Pay Advisors a % of Your Portfolio

A 1% annual fee might sound small, but over decades, it can eat up 25% or more of your total returns. If you use a financial advisor, choose one who charges a flat fee—or better yet, learn to manage your own portfolio with confidence.

Over 30 years, paying a 1% advisor fee on a $100,000 portfolio can cost you $186,876 in lost growth—assuming a 7% annual return.

Without the 1% fee, your portfolio would grow to $761,226.
With the 1% fee, it would grow to only $574,349.

That’s nearly 25% of your gains lost to fees—just for letting someone else manage your investments.

Only a tiny handful of advisors can consistently beat the returns of index funds—and even the greatest of them all, Warren Buffett, recommends low-cost index funds for the rest of us mere mortals.

When I turned 30, I finally had enough saved to start investing outside of my retirement accounts. The only problem? I didn’t know the first thing about investing beyond those tax-advantaged plans—and I was way too busy (and honestly, a bit intimidated) to figure it out. So I outsourced the whole thing to a portfolio advisor at a big-name investment bank with a strong reputation. I told myself it gave me “peace of mind”—which was just a fancy way of saying I didn’t want to think about it.

It turned out to be a very lucrative deal… for my advisor. Not so much for me. I ended up paying tens of thousands of dollars in fees over a few years while watching my portfolio barely move. My frustration was growing faster than my investments. Eventually, I realized I needed to wake up and make a change.

That’s when I started learning about index fund investing—simple, low-cost, and backed by none other than Warren Buffett himself. I shifted everything into a target date index fund and let it ride. No stress, no high fees, and no need for constant oversight. It was a valuable, though expensive, lesson.

💡 Top Tip: If you absolutely need to use a financial advisor, look for one with fee-based services—not percentage-based—and come prepared with your questions to make the most of your time. Personally,

I’ve never paid more than $1,500 for advice in a single session, and I usually reserve that for specialized tax planning. As a dual citizen with investments in multiple countries, I’ve made my fair share of missteps—some of them costly. But now, I’ve learned to invest in a way that’s simple, smart, and sustainable.

Invest Wisely and Consistently

Build wealth with boring, proven tools—like low-cost index funds. Automate your investments so they happen no matter what. Stay the course through market ups and downs, and let compound interest do the heavy lifting!

At 51, I did something I never thought I would—I walked away from a three-decade career in banking and started my own business. After 30+ years in corporate life and too many nights in hotel rooms, the Covid lockdowns forced me to pause. And in that stillness, I realized I didn’t want to spend my time crisscrossing the country for work anymore. I wanted to be grounded. At home. Doing something that challenged me in a new way.

That’s when I took the leap and became a local realtor. It was terrifying, exciting, and completely different from the corporate world I had known. But I loved it. Not only did I get to learn something new, I discovered a passion for real estate—so much so that I started building my own investment portfolio. At one point, I owned seven properties. Investing in real estate not only accelerated my own wealth-building, it made me a much better advisor to my investor clients. I wasn’t just talking about numbers—I was living them and I was able to teach others how to build wealth through real estate.

Once real estate made up a significant chunk of my portfolio, I realized I no longer needed bonds for diversification. My properties already served as a stable, income-producing hedge against stock market volatility. That’s when I finally picked up The Simple Path to Wealth by JL Collins. It hit home -Hard. I moved out of target date funds and into VTSAX—a broad-market, low-cost index fund that aligned perfectly with my new mindset. I remember thinking, “If only I’d done this a few years earlier…” But honestly, better late than never.

Note for Australian readers – VAS is the closest Australian equivalent of VTSAX.

I credit this book with helping me retire 3–5 years earlier than I’d planned, thanks to a new appreciation for investing in high-growth stocks—balanced with a solid hedge in real estate.

💡 Top Tip: Low-cost index funds make it easy to build wealth passively—just set it, forget it, and let the stock market (which has risen steadily over the last 100 years) do the heavy lifting.

People still repeat the same tired advice: 60/40 stocks and bonds, or 70/30 if you’re feeling wild. But here’s the truth—once you have a reliable, bond-like asset in your portfolio (like real estate), you don’t need bonds to buffer your stocks. What you need is intentional diversification, not a formula someone else created decades ago. Starting my own business opened that door. Investing in real estate and index funds helped me walk through it—on my terms.

✅ How Real Estate Hedges Against Stock Volatility

Low Correlation: Real estate (especially direct ownership or private REITs) often has a low correlation with stocks. When stock markets fall, real estate doesn’t always follow.
Income Generation: Like bonds, rental real estate produces steady cash flow (e.g., rent), which can provide stability even when stocks are down.
Tangible Asset: Real estate is a physical asset, not just a paper claim. This can provide psychological and practical diversification during turbulent markets.
Inflation Protection: Real estate often does better than bonds in inflationary environments because rents and property values can rise with inflation.

Real estate can hedge against stock volatility like bonds do, especially with its income and lower correlation to equities. But it comes with different tradeoffs—especially in terms of liquidity and active management. A mix of all three—stocks, bonds, and real estate—often provides the best risk-adjusted diversification.

💡 Top Tip: Real estate can be a powerful alternative to bonds—offering steady income, long-term growth, and a hands-on way to diversify your portfolio.

And yes, I’ve made my share of real estate mistakes—everyone does, especially when navigating multiple countries—but that didn’t stop me from building real, lasting wealth along the way.

Stay the Course—The Ride Is Worth It

You’ll make mistakes—I’ve made plenty.

The key is to learn, adjust, and keep going. Early retirement isn’t a straight line, but if you hang on through the bumps, the destination is absolutely worth it.

The journey to financial freedom isn’t always smooth. It’s more like a roller coaster—exciting, sometimes nerve-wracking, and filled with ups, downs, and unexpected turns.

But here’s the truth: the only people who get hurt on a roller coaster are the ones who try to get off in the middle of the ride.

Stay the course. Trust the process. Learn as you go. Because at the end of the ride is something incredible—your time, your freedom, your life on your terms.

LIVE RICHLY. FIND HAPPY.

Kathleen McDowell is an investor, writer, and financial educator. She shares how to build wealth and reach financial freedom for the sole purpose of having the ability to live a rich life ON YOUR OWN TERMS and SPEND TIME ON WHAT MATTERS MOST.

She offers free financial education—no courses to buy, no crypto pitches, no hidden agenda. Just honest, practical advice from someone who’s achieved financial freedom and wants to help you do the same. Because it’s frustrating to see people stuck in jobs they don’t love or stressed about money, simply because they haven’t been shown the way out.

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