She Strengthens

Breaking Free: How Embracing Frugality and Diversified Income Led Me to Financial Independence

A Journey of Self-Discovery

After two years of mini-retirement, I returned to full-time work with a newfound appreciation for the importance of cash flow, diversified income, and frugality. My initial intention was to focus on writing a book on personal finance, but the experience taught me valuable lessons that went beyond just finishing a manuscript.

The Psychological Impact of Decreasing Savings

With my expenses reduced, I still felt guilty about not generating income. The decline in my net worth was a harsh reality check, and I realized that having savings and time wasn’t enough to achieve my goals. I needed to cover my basic costs and increase my income to alleviate the guilt and anxiety.

Finding Balance with a Part-Time Job

I took on a flexible part-time role as an administrator, which allowed me to dedicate my mornings to writing. Earning a quarter of my previous salary was a significant drop, but my frugal lifestyle enabled me to strike the right balance between time and income.

Diversifying Income Streams

I soon discovered the benefits of “gig” jobs, such as tennis umpiring and TV extra work, which not only increased my income but also allowed me to develop new skills and networks. Having multiple income streams made me more resilient and less reliant on a single source of income.

The Power of Frugality

Practicing frugality has been a habit of mine since my teenage years. By constantly questioning my spending habits, I’ve been able to lower my expenses every year. Frugality isn’t about sacrifice; it’s about directing my resources towards what truly matters – experiences with loved ones, personal growth, and freedom.

Pursuing Financial Independence

With my book published and online courses launched, I returned to full-time work with a renewed focus on achieving financial independence and retiring early (FIRE). By combining my frugality with my new income, I’m on track to retire in my 40s. For me, retiring early doesn’t mean giving up work; it means having the freedom to pursue my passions without worrying about financial constraints.

Lessons Learned

My mini-retirement taught me that financial independence is within reach when you prioritize cash flow, diversified income, and frugality. By adopting these principles, I’ve gained a sense of freedom and control over my finances, and I’m excited to see where this journey takes me.