What if you can reach financial freedom and retire early faster? It may seem like it is out of reach or waaay in the future, but going the minimalist path may be the answer. Should we give up on the dream that more square footage, more cars, and more stuff equals success? What if I told you the key to financial freedom might be in having less, not more?
The Minimalistic Path Might Be Your Secret Weapon
Downsizing your home and and living a minimalist path sounds like a crazy and radical idea, but for me it is a liberating move. When I had to calculate my FIRE number, the number I got made me feel defeated. How was I going to get there to retire early? But the thing was, that I used my current living expenses, which were pretty high!
Downsizing isn’t just moving to a smaller house. It’s about aligning your lifestyle with your actual goals—not your ego, cultural expectations or the what we see on social media. It means fewer expenses, more intention, and reclaiming your time and energy. This is the key to achieving FIRE faster!
The First Gen Pressure to “Go Big”
For many Latinos/x, especially First Gen, reaching success is engraved into us. We not only want to make our family’s sacrifice worth it, but also have the pressure of setting up the next generation. The problem? Success isn’t defined very well besides earn a degree and score a high paying job.
In addition to this, we feel the need to show that we have made it, with the big house, luxury SUV, that Louis Vuitton bag, and more. And while those things aren’t bad, they often come with a fat price tag and a lifetime of debt.
We didn’t come this far to stay broke trying to look rich.
Let’s Talk Dinero: The Financial Gains of Downsizing
Here’s the tea:
- Lower mortgage or rent
- Lower utilities and maintenance
- Less property tax
- Lower insurance premiums
- Less clutter = Less Stress & Anxiety
Slashing Housing Costs = Wealth Accelerator
Housing is usually our biggest expense. By cutting this one cost, you can:
- Pay off debt faster
- Save more aggressively
- Invest sooner
- Take work breaks without panicking
Where to Put the Money You Save
All that extra money? Don’t blow it at Target, babe. Invest it.
- Index funds (hello, passive income!)
- Real estate (own smart, small rentals)
- Emergency fund (6–12 months is ideal)
Case Study: How I am taking the Minimalist Path to FIRE
I am not just all talk, I am walking the walk! I wanted the big house and fancy car but now my dream is different. If I wanted to gain financial freedom and retire early, then my mindset had to shift. I decided to go on the minimalist path. Here is a rough breakdown.
Housing:
- Original: 2400 sqft, 4 bedroom, 2.5 bath with a $4,200 mortgage (Purchased for $679,000)
- Now: 1700 sqft 3 bedroom, 2.5 bath manufactured home with $2,200 mortgage (Purchased for $139,000 + $145,000 for 10 acres of land)
Transportation:
- Original: 2019 Lexus SUV, Silverado, beat up Honda Civic
- Now: Just the Silverado (remote work so no need for multiple cars for now)
Debts:
My husband and I avoided new debt and paid off the truck in full. The only debt left is our new home and the rental properties, which pay for themselves.
Reaching Financial Freedom NOW
Now that I changed my plans, my FIRE number is much less. Originally, I needed $10,000-$12,000 a month to live a more luxurious lifestyle. Now I only need $6,000/month, which includes all living expenses plus funds for our savings (e-fund and travel) and ours and the kid’s investment accounts!
The best part? We are already there! With my husband’s remote job, it cover’s everything. Now, I don’t have to work and can focus on my passion projects (like this blog, MoneyChisme Podcast, and real estate investing) and raising my daughter. Next goal is to work on retiring my husband (although he enjoys his job right now).
How my FIRE Number changed
But what about my FIRE number? With the luxurious number (Fat FIRE), I would need about $3.6 million dollars in retirement investments to maintain that lifestyle. Now, I only need $1.8 million dollars! It makes reaching FIRE more achievable!
Currently, we have about $550K in investments (index funds and real estate). If I needed $3.6 million, then that puts me at 15% of the way there. However, with $1.8 million, I am 30% of the way there. I plan to accomplish this with rental properties. If that is something you would like to get started in, check out my Keys to Cashflow Rental Property Bootcamp.
Final Thoughts
This isn’t just about saving money. It’s about designing a life you love, not one that’s eating you alive with bills, chores, and debt. Society pushes the wrong idea of success and living a luxurious life. Problem is that if you want to reach financial freedom faster and retire early, you will need to shift your vision.
Downsizing is not a downgrade—it’s a glow-up. It’s choosing freedom over flexing, and long-term peace over short-term praise.
Your freedom is worth more than square footage.
So if you’ve been dreaming of financial freedom, maybe it’s time to stop adding and start subtracting. Porque less, is often so much more.
