Gen Z Guide to FI

Happy New Year, Fire Babies! I’m kicking off the year by asking some big questions. My friend reached out to me recently to ask, “What actual dollar amount should someone have at 30?” First, I am honored because my friends and family often come to me for financial advice. Most of them I send to my blog because I cannot repeat myself.

Also, I need to get some ad revenue, so read my posts, please 😉

This friend in question told me she would probably never get into the financial independence (FI) thing because she “doesn’t have that much self-control”. She’s probably also gonna marry someone at a similar high income and create a financially viable life. In my head, I’m like “bitch you’re already pursuing financial independence but you don’t realize it haha”. You don’t need to label yourself but you are saving money and investing in your future and that is literally what financial independence is.

Anyway, so back to the dollar savings amount at 30. She wanted me to tell her a specific number. (She is 26 years old. I love how most of my close friends are older than me. I’m so young and sexy.)

I’m like, first, I’d need to know your goals.

So, in this case, she is interested in getting a condo and building an emergency fund. I told her the amount she needs to have is the sum of all her short-term saving goals (aka her goals over the next 4 years before she turns 30). She already had a reasonable emergency fund.

Also, sidebar, I don’t believe 30 is the end of your youth. 30 is just a number. I want to dispel that because I don’t have any specific age-related goals other than retiring at 41. The age of 41 was chosen because it gives me a 14-year window after my MBA to hustle. The window might even be much less now that I don’t have to pay tuition for my MBA.

But if you are looking for how much money you need to save at any age, I’d recommend you to write a list of the current and short-term savings goals that you are aware of. Additionally, I would include a 6-month emergency fund to this amount. That is how I ended up answering her question.

She still wanted me to say, “You need $176,200, and you’ll be good”. Everyone’s goals are different. There is no definite answer but at least start with my recommendation. HAHA!

XOXO Gen Z Fire Baby