Gen Z Guide to FI

I’ve been trying and failing to have an abundance mindset towards money. Since I’m quitting in 3 months, I’ve been regressing hardcore into the scarcity mindset.

Disclaimer: I am mostly joking about chest tightness, but my anxiety is very real.

A quick refresher on the concept. An abundance mindset towards money is believing that money will always come. Time is fleeting. Make value-based decisions, not the cheapest way out. That was the bullshit I was spewing to myself since I’ve had a regular income. Now that I can see the end of the road, it’s hard to maintain that perspective. The financial belts must be tightened.

At the beginning of the year, I reduced my 401k contributions to the employer match (about 4%). For the past 2 years, I had been maxing out my 401k and Roth. This year, I realized there’s no way in hell I can do that. That made my chest feel tight. Am I regressing on my FI goals? 

Similarly, last week, I changed my annual bonus 401k contribution. Every year, I typically contribute 50% of my annual bonus to my 401k. I wrote a post last year about how it is the most tax efficient way to use your bonus. LESS MONEY TO UNCLE SAM, MORE CASH IN YOUR POCKET. You can read about it here. But this year, I reduced it from 50% to 5%, which increased my chest tightness. I know I need the money more now than in my retirement. Why does it hurt so much to reduce these contributions? Why do I feel so bad about it? These are all questions I’ve been asking myself in the last week.

This week, I changed the contribution back to 50% because I argued that oh maybe, I’ll make money while I’m in school. But I don’t know that for sure. I want to prioritize not having to stress about money in school. It makes sense to have more money in my wallet even if it’s less tax efficient. I know I have to go back to the 5%.

I need an abundance of time in school. The less time I spend worrying about money, the more time I can spend heading towards my goals and – dare I say it – having FUN?!?!?!. Now that I’ve written out the thought-spiral-vomit, I know what I must do.

Thank you for reading

XOXO Gen Z Fire Baby