Anyone seeking financial freedom to retire early or FIRE knows that many options exist to save and invest money. Today I’m excited to share with you 16 ways to help you reach FIRE faster!
The question is, what’s the best way to go about it? The problem is that there’s no one-size-fits-all answer, as the best method depends on each person’s unique circumstances.
That said, there are still some critical steps that can help anyone on the path to FIRE.
This post may contain affiliate links; please see our disclaimer for details.
1. Decide how early you want to retire
At what age do you want to be financially independent? Are you talking about retiring at 40 or maybe 60? The answer to this question will play a big role in determining how much you need to save and invest.
This is the first question you must ask yourself, as it will shape the rest of your FIRE journey.
There are different ways to calculate how much you will need for retirement. You can check out the other articles I’ve written describing the 4% rule and the 25x rule when considering retirement.
2. Take into account your cash flow and how much you owe
Cash Flow is Key
FIRE isn’t just about saving money – it’s also about ensuring your cash flow is positive. That means you need to consider how much you earn, how much you spend, and how much debt you have.
For example, if you’re earning a high salary but have a lot of debt, it will take longer to reach financial independence. The problem with debt is that it can be like a weight around your neck, dragging you down and preventing you from making progress.
Once you have a handle on your cash flow and debt situation, it’s time to start thinking about investing. Investing allows your money to work for you and grow over time.
There are many different options, so it’s important to research and find the right ones.
If you’re young, don’t be afraid to take some calculated risks. My wife and I purchased our first real estate property in our early 20s while still attending college. We learned many valuable lessons and were able to later turn it into an investment property that brought in passive income.
You might want to focus on more stable investments if you’re older. Adjust your investment strategy to your age and willingness to take on risk.
4. Automate your finances
One of the best things you can do to reach FIRE faster is to automate your finances. Set up automatic transfers from your paycheck into your savings and investment accounts.
This will help you make headway on your goals without even thinking about it. Automation is key to achieving financial independence because it takes the emotion out of decision-making.
You also want to ensure that you automatically invest your money in the right places. You can do this by using a service like Betterment or Wealthfront.
5. Live below your means
One of the most important things to remember to make the path to FIRE faster is that you must live way below your means. This doesn’t mean that you have to live like a monk – but it does mean that you need to be mindful of your spending.
Seriously consider your every purchase and ask yourself if it’s something that you need. A lot of people find that they can save a ton of money just by making small changes to their spending habits.
If you don’t need it, don’t buy it. Of course, that’s easier said than done if you have kids or other financial responsibilities, but it’s still something to keep in mind.
How is this different than living below your means?
Well, living below your means is more of a general principle. Keeping your expenses low is specifically about finding ways to reduce the amount of money you spend each month.
There are many ways to do this, but one of the most popular is downsizing your home. Moving into a smaller house or apartment can save you a ton of money monthly on rent or mortgage payments, utilities, and more.
7. Make extra money
Of course, saving money isn’t the only way to reach FIRE faster. You can also make extra money to help you reach your goals faster.
There are many different ways to do this, but one popular option is to start a side hustle. This could be anything from driving for Uber to starting a blog to selling products on Etsy.
The key is finding something you’re passionate about and can do in your spare time. Making a few extra hundred dollars each month can significantly affect how long you reach FIRE.
An excellent way to increase your PASSIVE income is by renting out extra space! With NEIGHBOR, you can easily rent out extra space, such as your garage, self-storage unit, rooms, etc.
From neighbor.com
8. Go back to school and further your education
No matter where you are in life, there’s always room for further education. Returning to school or picking up a new skill can help you get a better job and make more money.
This doesn’t mean that you need to get a Ph.D. – but taking some classes or getting a certification in something can really pay off.
The goal is to make yourself more marketable and increase your earnings potential. If you can do that, you’ll be well on your way to reaching FIRE faster.
You need to make yourself irresistible to potential employers. Plus, your current job might pay you more if you have more education.
9. Get rid of your debt
To retire early, you must get rid of your debt. We’re talking every last penny – credit cards, student loans, mortgages, car payments, everything.
The reason for this is twofold. First, debt is a massive weight around your neck. It’s emotionally and psychologically draining.
Second, debt costs you money. The interest payments on your debt could go toward your retirement.
The more money you spend on interest, the longer it will take you to reach FIRE. So, if you’re serious about retiring early, you need to get rid of your debt and begin living a debt-free life.
You can always try out the debt snowball method. We used this debt payoff strategy to repay 56,000 in student loans quickly.
10. Put as much money as you can in your retirement accounts
Of course, you want to do this after paying off your debts!
There are tax benefits to doing this, which we’ll discuss briefly. But the most important thing is that you’re putting your money towards your future.
The more money you can put into your retirement accounts, the better. This will ensure you have enough money to live comfortably when you retire.
The best retirement accounts are 401(k)s and IRAs. If you can, you should max out your contributions to both of these every year.
By maxing out your 401(k), you’re putting $18,000 away each year. And if you have a company match, that’s even more money you’re getting for free.
With an IRA, you can contribute $5,500 each year. And if you’re over 50, you can contribute an extra $1,000.
If you can swing it, maxing out these accounts each year is a great way to reach FIRE faster.
11. Reduce your tax burden as much as possible
You’ll need to hire a good accountant to do this. But there are a lot of different ways to reduce your tax burden.
This could be anything from taking advantage of tax breaks, setting up a home office, and deducting your business expenses.
The goal is to keep as much of your money as possible and to have less of it go towards taxes. The less you’re paying in taxes, the more money you’ll have to save for retirement.
You don’t want to cheat on your taxes, of course. But there are legal ways to reduce your tax burden. And you should take advantage of them if you can.
If you do your taxes, ensure you take advantage of all the deductions and credits you’re entitled to.
12. Consider relocating to a cheaper area
This isn’t for everyone. But if you’re serious about retiring early, you might want to consider relocating to a cheaper area.
Moving to a cheaper area will reduce your cost of living and free up more money that you can put toward retirement. We’re talking about lower mortgage payments, cheaper groceries, and lower utility bills.
If you work remotely, this is an especially good option. You can live anywhere in the world and still work from your laptop. The only downside is that you might have to say goodbye to your current lifestyle and social circle.
13. Take good care of your health
Your health is one of your most important assets. The healthier you are, the less money you’ll have to spend on medical bills.
You’ll earn more money now if you’re healthy and can work longer hours. And you’ll have more money in retirement if you don’t need to spend it on medical bills.
If you can be healthy when you’re young, you’ll be more likely to stay healthy in retirement. So, take good care of your health now, and you’ll reap the rewards later.
You’ll also save money once you retire if you’re in good health. That’s because you won’t need to buy as much insurance.
14. Invest every cent that you don’t spend
Any money left over at the end of each month should be invested. Let’s say that you budget yourself $300 a month for entertainment.
But at the end of the month, you only spent $200 on entertainment. That extra $100 should be invested. You might think the $100 is meaningless, and you can let it sit in your checking account.
But that’s not true. That $100 can grow into a lot of money if you invest it. Toss that $100 in a rising tech stock and let it sit for a few years. You’ll probably get a better return on your investment than letting the money sit in your savings account.
One way you can increase your savings and investments is by mico-investing.
ACORNS is a popular platform that can round up money from purchases and automatically allocate those funds to diversified investments.
If you’re unhappy with how things are going, don’t be afraid to make changes. That’s true in both your personal life and your financial life.
If you don’t like your job, quit and find something else. End it if you’re in a relationship that’s not working out.
If you’re not happy with your current financial situation, make changes. That could mean getting a better-paying job, finding a cheaper place to live, or investing more money.
Whatever it is, don’t be afraid to make changes. Life is too short to be unhappy. And you’re in control of your own happiness.
Although easier said than done, you can start making baby steps today toward meaningful change.
16. Don’t let your emotions get the best of you
Your emotions can lead you astray, especially when it comes to money.
Don’t make financial decisions based on your emotions. That’s a surefire way to lose money.
For example, don’t sell all of your stocks when the market is crashing. And don’t buy stocks just because everyone else is buying them.
Investing is a long-term game. You need to take a long-term view if you want to be successful.
You’ve Got This!
So, by now you should know how to retire early. It’s not easy, but it’s possible. You need to be disciplined with your money and make smart financial decisions. Try focusing on one or a few tips in this article to help you reach FIRE faster.
You begin by assessing your current financial situation and setting some goals. Then you need to create a budget and start investing your money.
You should also make sure that you’re taking good care of your health. That way, you can stay healthy and work harder. The harder you work now, the faster you’ll get to enjoy FIRE.
Please comment below with ways you’ve been able to gain control over your finances and speed up your financial freedom journey!
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
This post may contain affiliate links; please see our disclaimer for details.
Many people are making money renting their Utah vacation homes through Airbnb. People turn to Airbnb for an authentic experience and to save money on travel accommodations.
Airbnb offers travelers a unique way to stay in someone’s home while on vacation. This is a more intimate and personal way to travel as people experience the daily lives of people who live in the area they visit.
In this article, I share the top reasons why Utah is a great place for your next AIRBNB vacation home.
Utah State Sign
1. You can purchase an excellent home for a great price
You don’t have to invest much to start your AIRBNB vacation rental business in Utah. Many reasonably priced homes on the market would make great vacation rentals.
How much will you have to invest in getting started? You can easily get started by investing just a few hundred thousand dollars.
If you compare the price of buying a vacation home in states such as California or Colorado, you’ll find that Utah is a much more affordable option. Something else to consider is that the houses in Utah tend to be newer than in other states.
2. The people are incredibly friendly and welcoming
The residents of Utah are some of the friendliest and most welcoming people you’ll ever meet. They will go out of their way to make you feel at home and help you enjoy your time in the state.
This kind of hospitality will make your guests feel at home and want to return for more. That’s important because it will help you build a strong reputation as an AIRBNB vacation rental host.
You must provide great customer service if you want to be successful in this business. The good news is that it’s easy to do in Utah because the people are so friendly.
3. There is so much to do in Utah!
Utah is an outdoor lover’s paradise. There are so many activities to keep your guests entertained, no matter what time of year.
In the winter, your guests can enjoy skiing and snowboarding at one of the many world-class ski resorts. In the summer, they can take advantage of hiking, biking, and camping in the beautiful mountains.
There are also five national parks located in Utah. This includes Zion National Park, Bryce Canyon National Park, Capitol Reef National Park, Arches National Park, and Canyonlands National Park.
Your guests will never be bored while staying at your Utah vacation rental. They’ll always have something to do and new things to see.
4. The Sundance Film Festival brings in a lot of customers
Park City, Utah
You won’t have any problems renting out your Utah vacation rental during the Sundance Film Festival. This is one of the most popular times of year to visit Utah.
Many people come to Utah for the Sundance Film Festival, held in Park City, each year. This is an excellent opportunity to make extra money by renting your vacation home.
The Sundance Film Festival is held in January, so it’s a great time to take advantage of the winter sports available in Utah. Your guests can enjoy skiing and snowboarding while in town for the festival.
5. The scenery in Utah is stunning, no matter where you go
The state of Utah is home to some of the most beautiful scenery in the country. No matter where you go, you’ll be surrounded by majestic mountains, pristine lakes, and other natural wonders.
This is the kind of scenery that people dream about when they think of taking a vacation. It’s the perfect backdrop for your Utah vacation rental.
Your guests will be able to enjoy the stunning scenery while they’re staying at your rental. They can go for hikes, take scenic drives, or relax and enjoy the view.
6. People from all over the world come to Utah to vacation
Utah is a popular vacation destination for people from all over the United States. This is because there’s so much to see and do in the state.
People come to Utah to enjoy the great outdoors, the friendly people, and the stunning scenery. If you can provide a comfortable and convenient vacation rental for them, you’ll surely attract a lot of business.
7. Utah is the heart of the Mormon religion
Salt Lake City, Utah
Mormons flock to Utah from all over the world. This is because Utah is the headquarters of the Mormon church.
If you have a vacation rental in Utah, you’ll be able to attract Mormon guests worldwide. They will come to Utah to visit the Mormon temple and other religious sites.
It doesn’t matter if you’re Mormon or not. You can still take advantage of this market by catering to Mormon guests. Mormons are known for living a very conservative lifestyle, so you don’t have to worry about them destroying your rental property.
If you own a vacation rental in Utah, you’ll be able to take advantage of the state’s many tax benefits.
This is because Utah has very favorable tax laws compared to other states. You can deduct a portion of your mortgage interest, property taxes, and other expenses from your taxes.
This can save you a lot of money, especially if you have a high-priced property. Every dollar adds up, and when you don’t have to pay the taxman, it’s more money in your pocket.
9. Great property management company options
It’s not hard to find a good property management company in Utah. There are plenty of companies that specialize in managing vacation rentals.
They can take care of everything for you, so you must collect the rent. This is a great way to take the hassle out of owning a vacation rental.
A good property management company will enable you to rent out your AIRBNB vacation home in Utah, whether living in a different state or halfway around the world.
Conclusion – Utah IS an Excellent AIRBNB Location
As you can see, there are many reasons why Utah is a great place to own an AIRBNB vacation rental. The state offers a lot, from friendly people to stunning scenery.
Not to mention, the tax benefits and the availability of property management companies make owning a vacation rental in Utah a desirable proposition.
Utah should be at the top of your list if you consider getting into the vacation rental business. Every year, more and more people are discovering what a great place Utah is to vacation.
By owning a vacation rental in Utah, you can be a part of this growth and make significant profits. So there’s no better time than now to start the vacation rental business. And Utah is the perfect place to do it.
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
The Psychology of Money is a fascinating book that explores how people think about money.
The book comprises a series of short stories, each containing an insightful lesson about money and human psychology. The stories are based on real-life events and offer valuable insights into how people think about money.
In addition to being enjoyable to read, The Psychology of Money is also packed with helpful information about managing your finances and making smart money decisions.
Let’s jump into the main few lessons you can learn by reading the Psychology of Money that can be applied to both life and business:
The Psychology of Money
Lessons from Warren Buffet
Comparing yourself to others is an easy trap to fall into. Whether you’re scrolling through social media or flipping through a magazine, it’s all too easy to fixate on what other people have and what you don’t. This applies to both life and business.
However, it’s important to remember that everyone is on their journey and comparisons are seldom truly accurate.
One trap that many people fall into is constantly chasing after the next thing. Whether it’s a new car, a bigger house, or a higher salary, there will always be something else to strive for.
Doing so can often lead to dissatisfaction and a feeling of never being good enough. Instead of constantly chasing after the next thing, it’s essential to take a step back and appreciate what you already have.
Of course, there’s nothing wrong with wanting more out of life. However, it’s essential to be mindful of your motivations.
If you constantly compare yourself to others or chase after things you don’t need, it might be time to reassess your priorities.
Remember, your journey is unique, and you deserve to enjoy every step of the way.
Getting money vs. keeping money
While some risks are inherent in making money, it is possible to offset them by being smart about managing your money.
For example, investing in stocks can diversify your portfolio to reduce the overall risk. Also, if you’re self-employed, you can save money in an emergency fund to cover unexpected expenses.
Risk-taking must be balanced with caution to maintain your wealth.
Past success is no guarantee of future earnings, so saving and investing are important for the long term. Additionally, it’s essential to resist spending lavishly or taking on excessive debt.
By remaining disciplined and mindful of the potential for loss, you can help ensure that your financial success is sustainable.
The author, Morgan Housel, explains a fundamental lesson on how tails are drivers of success. For example, a company may sell many products without much profit return. Then as if out of the blue, one or a few of the products sell exceptionally well and end up making up for most of the profit.
Those amazing products are the tails that drive success. The same is true with our money decisions and investing. Many times it is the tails that drive success, and there will be many trials or failures along the way. So remember never to give up if something goes wrong; keep learning and improving.
Being wealthy vs. being rich
Being rich and being wealthy are two different things. A rich person has a high current income, but a wealthy person has money they haven’t spent.
Wealthy people have the option to buy or do something at a future time. Being rich offers short-term opportunities, but wealth provides more items you want in the future, like freedom, time, and possessions. Therefore, it’s better to be wealthy than rich.
Embrace failure as an essential step toward success
It’s often said that the true test of a person’s character is how they handle adversity. Life is full of challenges, and those who can persevere in the face of difficulties usually come out ahead.
This is because they have what it takes to endure the tough times and keep going until they reach their goals.
One of the key ingredients to success is having a strong tolerance for risk. Often, the only way to achieve something great is to take some risks along the way.
Those afraid to take risks usually don’t accomplish much in life because they’re too worried about failing.
However, it’s important to remember that failure is a part of life and everyone experiences it at some point. It’s how you deal with failure that determines your ultimate success.
Those who can take risks and handle failure are usually the ones who achieve great things in life.
So if you want to be a success, don’t be afraid to take some risks and embrace your failures along the way. They might be the key to your ultimate success. It’s also important to not be too extreme – not taking too much risk to ruin everything if gone badly or not being too conservative.
Hindsight doesn’t provide an accurate view of the past
It’s human nature to want to make sense of our world. When something happens, we ask questions immediately to understand why it happened.
And once we have a story explaining the event, we often hold onto it even if it’s inaccurate.
The problem is that these stories can give us a false sense of understanding and control. We tell ourselves that we know what caused a specific event and can use that knowledge to predict future events. However, the reality is often much more random and unpredictable.
The next time you find yourself trying to make sense of a past event, remember that the story you create might be nothing more than a work of fiction.
Instead of using it to predict the future, use it as a reminder that the world is full of surprises.
Cash isn’t always a bad thing
While it is certainly important to invest wisely, it is also essential to consider your personal risk tolerance when making decisions about your portfolio.
For some people, holding a large percentage of their net worth in cash may not be the best choice, as they may be more likely to sell during a market dip.
On the other hand, for more risk-averse people, holding a more significant percentage of their net worth in cash may help to reduce anxiety and allow them to sleep better at night.
Ultimately, the best course of action is to carefully consider your risk tolerance before deciding how to allocate your assets.
The Psychology of Money – My Conclusion
Making smart money decisions requires understanding both the psychology of money and the math of investing, but more so, the behavior and psychology of your money decisions.
By learning about the lessons in this article, you’ll be in a much better position to make sound financial decisions to help you reach your long-term goals.
The Psychology of Money is a book everyone should read regardless of investment opinions.
The book covers many topics, but a key one is that money is more than what’s in your bank account or investments. The relationship you have with your money will have a significant impact on your life and how you live it.
The Psychology of Money is a great place to start if you want to improve your financial situation.
The book contains actionable advice and exciting stories to help you better understand your relationship with money.
After reading this book, you’ll be better equipped to make sound financial decisions that will improve your life in the long run!
Already read The Psychology Of Money? Drop a comment below with your thoughts and impressions!
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
This post may contain affiliate links; please see our disclaimer for details.
Have you been considering Utah as a place of retirement? Utah is a great state with a lot to offer retirees, but there are also some things to consider before moving.
As with any place, there are pros and cons to retiring in Utah. Here are some things to keep in mind.
Pros of retiring in Utah
Utah Zion’s National Park
Utah has excellent healthcare facilities
The quality of healthcare services in Utah is very high. Many hospitals and clinics offer excellent care.
Additionally, the state has many highly trained doctors and nurses. This means you can get the care you need if you have any health problems.
As we grow older, healthcare becomes increasingly important to us. Utah’s excellent healthcare facilities give retirees peace of mind knowing that they will be able to receive the care they need.
The cost of living in Utah is relatively low
While the cost of living in Utah is not as low as in some other states, it is still relatively affordable. This is especially true when you compare it to the cost of living in California or New York.
Retirees on a fixed income will find that their money goes further in Utah than in other states.
You’ll find that your dollars will also go further, and counting your pennies might not be as big of a concern if you relocate to Utah.
Utah is well-known for its friendly residents and a strong sense of community. Most Utahns are Mormon, and the state has been ranked as the most generous in the nation.
Mormon doctrine emphasizes neighborly friendliness and love, encouraging residents to be kind and welcoming to others. Even if you don’t share the same beliefs, you will be impressed by how accepting and accommodating everyone is.
Utah offers both country and city living
Park City, Utah
When finding a place to call home, Utah offers many options. From the bustling cities of Salt Lake City and Park City to remote residences miles from any neighbors or towns, there is something for everyone in Utah. With the state’s diverse landscape, you can live in the mountains, desert, or anywhere in between!
This is also important for people who like to live in the city but enjoy going into the country for weekend getaways. You can have the best of both worlds when you retire in Utah.
Property taxes in Utah are pretty low
If you plan on owning your own home in retirement, you’ll be happy to know that property taxes in Utah are pretty low. As always, taxes fluctuate, and the rate today might not be the rate tomorrow, but in general, Utah has some of the best property taxes in the country.
So you can own a nice home in Utah and not worry about the taxman taking more than he should.
There are a ton of leisure activities to do in Utah
Utah is a state that offers a wide variety of activities that are perfect for seniors. The scenery is beautiful, the museums are fascinating, and there are plenty of opportunities to get outside and enjoy the warm weather.
Scuba diving, swimming, and hiking are just a few outdoor activities in Utah. Additionally, the state is home to five of the nation’s most pristine national parks. The Sundance Film Festival is also held in Utah each year, and it is an event that people of all ages enjoy.
If your grandkids come out for a visit, they’ll never be bored, either. You’ll be the cool grandparents living in a state with many fun things to do.
You get to experience all four seasons in Utah
Utah is a state that experiences all four seasons. In the winter, you can find yourself amid a fluffy snow day in the mountains or a chilly, crisp day in the valleys.
You may also enjoy a snow-dusted red rock desert or some of the world’s top skiing and snowboarding terrain.
You can appreciate the changing landscapes, blooming wildflowers, and changing leaves in the spring and fall.
Summers are hot and dry, providing some relief from the chilly winter days. Whether you’re looking to experience a different season or you want to visit both summer and winter in one day, Utah has it all.
Utah has one of the lowest crime rates in the country
Although Salt Lake City has a lower crime rate than most US cities, living in one of Utah’s rural communities is still statistically safer. This is because the crime rate in these areas falls well below the national average, making Utah one of the safest states to reside in. Utah is an excellent choice for seniors looking for a safe retirement place.
Not only will they be able to enjoy a low crime rate, but they will also be able to take advantage of the state’s many scenic attractions.
Utah’s thriving economy is one of the state’s best assets, and it’s a large part of what makes Utah a great place to retire. The state has a low unemployment rate, a growing number of tech jobs, and an expanding labor force.
These factors contribute to a strong economy, making life more convenient and affordable for residents. And because Utah is home to so many businesses and industries, retirees have plenty of opportunities to find work or start their businesses.
If you are considering starting a business or working part-time during your retirement, Utah is an ideal state to do so. You’ll find plenty of opportunities to succeed, and you’ll be able to take advantage of the state’s strong economy.
Utah has invested a lot of money in transportation
Transportation in Utah has vastly improved over the past decade, largely thanks to the state’s investment in its highway system. Utah now has a border-to-border highway system that enables quick travel between its major cities.
In addition, the state has two major motorways connecting it from both directions, making it possible to go from top to bottom in a matter of hours.
And for those who don’t want to drive or don’t have a car, the state’s public transit system is also very efficient, with light rail and bus routes connecting all major cities.
As a result, Utah is now an effortless state to get around in, regardless of how you choose to travel.
Cons of retiring in Utah
Utah is growing rapidly
In recent years, Utah has experienced a population boom as people from all over the country move to the state in search of a better quality of life.
This influx of new residents has transformed Utah into the “Silicon Slopes” as the state has gained recognition in the tech sector.
The state’s development is expanding at a rapid pace, and new businesses are popping up all over. While this growth is exciting, it also challenges the state’s infrastructure.
For example, traffic is becoming increasingly busier in Utah’s cities, and housing prices rise as demand outstrips supply. However, Utah’s leaders are working hard to address these challenges and ensure that the state can continue to thrive in the years to come.
It can get cold and snow a lot in the wintertime
Utah is a state that experiences harsh winters. The snowfall is often heavy, and the temperatures are often in the 20s. The hilly regions are much colder than the rest of the state.
If you don’t like the cold, you might want to cross Utah off your list. Even if you don’t mind the cold, you might want to reconsider living in Utah. The winters could be long and difficult to get through. You might find yourself spending more time indoors than you would like.
Air quality could be an issue
Utah’s poor air quality is becoming an issue in certain regions, particularly in recent years. Salt Lake City is located in a bowl-shaped valley that traps an air layer over it, keeping all of the city’s pollution inside.
During winter, the city may be covered by an inversion layer for weeks, with daily air quality declines.
Your ability to breathe may be impaired at these times if you suffer from allergies, asthma, or other breathing conditions.
Even in the summer, there are times when the inversion will appear. The state of Utah has implemented a few different programs to help improve air quality, but more needs to be done to solve the problem.
Utah has wacky alcohol laws
Utah’s alcohol laws are some of the most bizarre in the nation. You can only purchase alcohol through a liquor store – no grocery stores or gas stations here!
And if you want to drink on a Sunday, you’re out of luck, as relatively few places sell alcohol, and all liquor outlets are closed.
But it’s not just about buying alcohol – the alcohol content of mixed drinks is also restricted in Utah. If you order a cocktail, it will only contain half as much alcohol as it would in any other state.
Wide distances separate many communities
As you travel across Utah, you’ll notice a lot of emptiness. This is because the state is mostly rural, with large stretches of land separating the various communities.
While some people may view this as a disadvantage, it can also be an advantage. The wide open spaces provide a sense of peace and tranquility, and they offer opportunities for outdoor activities like hiking, camping, and fishing.
In addition, the lack of development means that Utah’s natural beauty is more readily apparent. So while it may take a little longer to get from one place to another, the journey can be just as rewarding as the destination.
Housing prices are rising rapidly
In recent years, Utah has experienced a boom in development and population growth. As a result, housing prices have risen sharply, and retirees on fixed incomes are finding it difficult to keep up with the increases.
While some argue that housing is still reasonably priced in Utah, the reality is that rising GDP, population, and employment markets are putting upward pressure on prices.
And if you don’t take immediate action to secure your housing situation, you could find yourself priced out of the market in the coming years.
Utah can get super hot in the summer
Utah is a state that is known for its beautiful scenery, ranging from the snow-capped mountains in the north to the red rock canyons of the south. However, it is also a state with a wide range of climates, and summers in Utah can be blisteringly hot.
In southern Utah, temperatures regularly reach 115 degrees during the summer months. This is not the place for anyone who can’t stand the heat! The dry air makes the heat even more intense, and there is little relief in the shade.
The taxes can be quite a burden
As anyone who has ever filed a tax return knows, taxes can be a significant burden. For residents of Utah, this burden is especially heavy, as the state has some of the highest tax rates in the nation.
The average tax rate in Utah is 7.10%, with a base sales tax of 6.10%. This may not seem like much, but it quickly adds up compared to other states.
Conclusion: Utah has Much to Offer Retirees
So, is Utah a good place to retire? It depends on what you’re looking for. If you’re searching for an affordable place to live with plenty of opportunities for outdoor activities, Utah may be a good fit. However, you may want to look elsewhere if you’re not a fan of the heat, the taxes, or the alcohol laws.
Utah has a lot to offer retirees! Weigh the pros and cons carefully before making your decision. When choosing a retirement destination, it’s essential to consider your individual needs and preferences.
It’s a good idea that you visit Utah before deciding whether to retire here. That way, you can get a feel for the state and see if it’s a good fit for you.
Remember, there’s no place like home, so make sure you choose a place you’ll be happy to call home for the rest of your life.
Feel free to comment below with your thoughts or experiences of living or retiring in Utah!
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
If you’re coming up upon retirement and considering moving to Utah, you may wonder how much money you’ll need to have saved up. This article will look at how much money you need to retire in Utah!
The good news is that Utah is a very affordable state, and your retirement income will go a long way.
This post may contain affiliate links; please see our disclaimer for details.
How much money do you need to retire in Utah?
Utah Map
If you’re moving to Utah to retire, you’ll need to have saved up at least $1,000,000. This number may seem high, but it’s achievable if you start saving early and investing wisely.
Your million dollars are needed to cover your living expenses, which we’ll discuss in the next section.
However, everything you will pay will come from your savings, so it’s essential to have a plan and know exactly how much you need.
Your living expenses in retirement will be similar to what they are now, but there are a few key areas that you should budget for.
First, you’ll need to account for housing costs. In Utah, the median home price is over $400,000, depending on location. If you plan on buying a home, you’ll need a down payment and money for repairs and maintenance.
You can expect to pay about $1,500 monthly for a one-bedroom apartment if you’re renting.
Next, you’ll need to budget for healthcare costs. Healthcare is always a big expense in retirement, but it’s essential to plan for in Utah.
Utah has a large population of retirees and a limited number of healthcare providers. This combination can lead to higher prices and longer wait times for medical care.
You could budget about $5,000 per year for healthcare costs in Utah. This number will cover your basic needs like doctor’s visits and prescription drugs.
Your costs will be higher if you have a chronic illness or require regular specialist care.
Things that you shouldn’t overlook when budgeting for retirement
1. Don’t forget to account for inflation.
As we’ve recently seen, inflation can significantly impact your retirement savings. No one can predict what inflation will do, but you should plan for at least a 7% annual increase in your cost of living.
2. Don’t underestimate your housing costs.
Housing is one of the most significant expenses in retirement, and it’s essential to factor in things like repairs, maintenance, and property taxes.
3. Don’t forget to budget for travel.
One of the best parts about retirement is that you finally have the time to travel. However, travel can be expensive. Make sure to set aside money in your budget for trips that you want to take.
4. Set aside money for things like going out to eat.
Everyone gets tired of their cooking sometimes. So make sure to budget for nights out and other fun activities that you enjoy.
5. Hobbies are a must now that you have free time.
If you sit around at home all day, you’ll get bored quickly. Make sure to set aside money for hobbies and activities that you enjoy.
Some retirees may be fine for spending 40,000 per year during retirement.
That $40,000 may sound like a lot, but it won’t buy as much as you think. In Utah, the median household income is about $74,000. This means that your retirement income will only be about half of what you’re used to.
So, you can live somewhat comfortably for 25 years if you have a million dollars saved up. Somewhat is the keyword here. You’ll need to be careful with your spending and ensure you don’t outlive your savings.
I dived into the topics of how much you need in general for retirement by creating two other articles that I highly recommend you check out.
Ideally, you would have at least two million dollars or more saved to live more comfortably.
If you have a spouse, you’ll probably want to have more saved up. And, if you want to travel or do anything else with your retirement, you’ll need more than $40,000 per year.
How much should you have saved by age 65?
There’s no magic number, but the advice was to have 25 times your annual expenses saved by retirement. So, if you make $50,000 annually, you should have $1,250,000 saved.
If you have less than a million dollars saved, you could retire in Utah but may want to look at lower-priced homes.
If you’re in good health and don’t have a physical labor job, you may be able to put off retirement for a few years. This will give you more time to save and reduce the years you’ll need to support yourself.
Working a few extra years may not sound like fun, but it’s better than struggling to make ends meet in retirement.
Even if you scale back and work part-time, that can make a big difference.
Retiring in Utah – Conclusion
If you want to retire comfortably in Utah, you need to have enough money saved up. But the good news is that you have time to save if you’re young!
If you’re not so young, there are still things that you can do to make retirement more comfortable.
No matter your age, the most important thing is to start saving now.
The sooner you start, the more time you’ll have to let your money grow. The more money you save, the more comfortable your retirement will be. Taking advantage of the power of compound interest is one of the most important things to do now.
Make sure you have a plan and start saving now to enjoy your retirement years. You can always check out more articles on our blog to help increase your income while reducing your expenses!
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
Greetings from the Biesingers! Welcome to our financial independence retire early (FIRE) blog! We are so excited you are here and to share valuable financial freedom and health content with you. For more information about us, click HERE.
