An important disclaimer: I am not a financial advisor and none of the below should be construed as financial advice. The below details tactics that have worked for me, but you should not expect to see similar success. Stock market investing is SUPER risky, only choose strategies that work for your personal goals and circumstances, and always seek advice from an accredited financial advisor.

Also, full disclosure: I am a proud affiliate, meaning if you click a link and make a purchase, I may earn a commission at no extra cost to you. My recommendations are based on deep experience with and knowledge of the products I mention and I recommend products only when they are genuinely helpful and useful, not because of the small commissions I may receive. Please don’t spend any money on products I recommend unless you genuinely believe they will help you achieve your goals.

My FIRE journey hasn’t always gone according to plan.

I’ve made my share of financial mistakes, but I’ve also learned a lot along the way. 

Over the years, my investing and budgeting skills have increased substantially, and I’ve learned how to avoid some pretty nasty financial pitfalls (like bad loans). 

While I’m grateful for the lessons I’ve learned, I’m far more excited to help people like YOU learn from my mistakes. Hopefully, you can avoid them altogether.

In this article, I’m going to tell you about 4 surprising things I learned along my FIRE journey. Perhaps these lessons will surprise you too. Whether or not they do, carry them with you on your journey to financial success.

By the way, this article is part 2 of 2 in a series of articles where I share what I’ve learned along my FIRE journey. For part 1, click the link below:

#100: Examples for Success: My 6 FIRE Takeaways

4 Surprising Things I Learned Along My FIRE Journey

I’ve learned some tough financial lessons the hard way, and 2 of the 4 surprises below are no exception. 

Thankfully, I’ve been able to recover from the mistakes I’ve made, and apply the lessons I’ve learned to help me make better choices in the future.

Ready to learn about the surprising lessons I’ve learned along my FIRE journey? Keep reading on!

Examples for Success (and avoiding failure): Things That Take You by Surprise

1. Financial Institutions Love Fools

When I was in college, I opened up a Bank of America account. There was a bank close to my university, so I figured it was convenient.

I opened up one of those free checking accounts, so you can imagine my surprise when a few years later, I discovered that good ‘ol BoA had issued a monthly charge to my account.

It was quite a few months before I made the discovery (I was a busy college student after all), and when I called to complain, BoA claimed that I wasn’t meeting their qualifications for a free account. However, upon closer inspection, I realized that I DID meet their qualifications.

I called and argued with them, and they argued back. After some time, they agreed to refund me the last few months of charges… But they’d already charged me for over 6 months Naturally, they were unwilling to refund me anything beyond that 6 months.

It was then that I realized I’d been far too trusting. Even worse, if I hadn’t known what to look for, I might have failed to notice the charge entirely.

Unfortunately, there are plenty of people out there that don’t pay close attention to their accounts, or what their financial institutions are charging them. They simply trust the bank has their best interest at heart, which is a big mistake.

It’s for that reason that I prefer to use credit unions, but even those have their downsides.

2. Expenses Eat Your Investments for Breakfast, Lunch, and Dinner

Investing is great. In fact, it’s one of my hobbies, but have you ever stopped to consider how much expenses can cut into your long-term gains?

Expenses, often overlooked, can slowly erode your returns over time, especially if you’re committed to succeeding along your FIRE journey.

One of the primary culprits are actively managed mutual funds. These funds typically charge higher fees, often in the range of 1-2% of your invested amount. While these funds promise to outperform the market by employing skilled portfolio managers, their track record often falls short of expectations.

Low-cost index funds offer a more cost-effective alternative. These funds passively track a specific market index, such as the S&P 500, and therefore incur minimal expenses, with typical fees as low as 0.1-0.3%. It might not seem like much, but it makes a difference.

Consider this scenario: If you invest $10,000 in an actively managed fund with a 1% expense ratio, you’ll immediately lose $100 to fees. Over the long term, these fees can accumulate substantially, reducing your long-term potential gains.

On the other hand, if you invest the same amount in a low-cost index fund with a 0.2% expense ratio, you’ll only pay $20 in fees. This seemingly small difference can make a significant impact over time.

By opting for low-cost index funds, you can minimize expenses and allow your investments to grow to their full potential. With time and patience, these funds can effectively help you achieve your financial goals.

It’s for this reason that I prefer to focus my investments on low-cost index funds.

3. Credit Cards Can Make You Money… If You Play a Smart Game

I’ve been privileged and fortunate to never carry credit card debt, but it’s only because I’m incredibly disciplined about how and when I spend money.

Admittedly, it’s not an easy feat, and whether or not you’ve managed to do the same, I strongly encourage avoiding and/or paying off credit card debt at the soonest opportunity.

Credit card options are vast and diverse, and most credit cards have some kind of reward or incentive system, which can provide you with cashback rewards that actually make you money.

Don’t believe me? Take some time to look at the credit card rewards available to you. You might be surprised!

Now this is a serious area to be cautious of. Credit cards incentivize you to spend money for a reason… They make money if you carry a balance. If at all possible, avoid carrying a balance, and NEVER spend more than you can afford.

Credit card debt is incredibly costly. No reward will ever be worth carrying a balance, so be wary and disciplined in how you spend.

Now if you can be disciplined, credit cards can do a decent job of making you a little extra money on the side, simply because you’re using them.

4. Your Partner Can Be Your Greatest Asset… or Anchor Along Your FIRE Journey

Remember the story in the previous article about how I bought a car at a 29.99% interest rate with a previous boyfriend? I didn’t know it at the time, but that wasn’t the first time my ex had bought a car at that rate.

Over time, I would eventually learn that said ex wasn’t exactly financially savvy (if the bad credit wasn’t a dead giveaway). Of course, I was young and naive and assumed that he knew better (he was a few years older after all, an easy assumption to make).

I’m on okay terms with said ex, so I won’t name names, but I did learn that who you choose for a partner can have a lasting impact on your finances and FIRE journey.

Thankfully, my husband is quite financially savvy (and he has excellent credit), so we make a great team. But be warned – your partner can make the difference between financial success or ruin.

Conclusion

Did any of these lessons surprise you? Have you learned any surprising things along your own journey? Let me know in the comments below!

Thank you for including me on your journey to financial success. Whether you’re just starting out, or already well on your way to FIRE, I’m proud to support your efforts, big and small.

Best of luck on your financial freedom and FIRE journey forward!

Now  that you’ve learned these surprising lessons along my FIRE journey, you might be wondering how  else you can FIRE Your Career. Check out the posts page for more ways you can FIRE Your Career and achieve financial freedom.

FIRE Your Career: Achieve Financial Freedom Through Your Career & Spend MORE Time Doing What You Love.

Resources I Frequently Recommend:

ClickUp (my recommended goal-tracking and project-management tool)

Strengths Finder (book to help you uncover your innate strengths, includes a free personality quiz)

The Bogleheads’ Guide to Investing (a great intro to investing book)

Others: 16 Books I Recommend to FIRE Your Career