Financial Independence Retire Early is a concept that pisses off a lot of people and I totally understand why. The idea that you can save, invest, and focus enough to amass 25 times your annual income so that you can withdraw 4% annually seems a bit outrageous. How is this even possible? With car loans, student loans, a lack of financial education, or enough financial education to know that you’re behind the eight ball or basically fucked financially. There’s also the other piece on the road to F.I.R.E. that pisses off a lot of people-the focus on the end result-retire, versus what your life looks like now. Life is hard enough without working towards a goal that seems unattainable. In my view, there is another way and I wanted to share what Slow F.I.R.E. gets right about F.I.R.E. that people are missing.
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Show Notes
- It is my view that the “R” in F.I.R.E. is keeping a lot of people from creating their best lives now.
- I noticed this after either talking about F.I.R.E. with people who are pursuing it currently. Or, when sharing the concept of F.I.R.E. with people for the first time.
- F.I.R.E. devotees always talk about the year that they retire. “I can’t wait for 2030 when I retire officially from working my 9-5” I’m sorry but that is so unappealing.
- People new to F.I.R.E. will begin talking about the following “What will you do when you’re retired?” As if the absence of daily labor for a company that you’re a cog in the wheel for is the end all to the type of activities you could be doing on a daily basis. Speak to a retired person of any age-young or old, the vast majority of them will tick through a list of all of the stuff that they’re up to. In fact, my grandma is one of the busiest people that I know. I’ve often asked her how she had time for work with all of the activities that she’s currently part of. She laughed and said, now I can do all of the things that I actually enjoy.
- I need to ask-what about the F.I.R.E. Movement is appealing to you? I’ll share why it’s so appealing to me:
- Financial Independence-Something that everyone should aspire to.
- The ability to make decisions without worrying about money
- Lifestyle flexibility
- Being able to pursue my interests
- Time to focus on self-care and fitness
- The ability to spend more time with family and friends
- Learn new things and challenge myself intellectually
- My current reality
- I have lifestyle flexibility
- The ability to pursue my interests
- Time to focus on self-care and fitness
- The ability to spend more time with family and friends
- And, I’m able to focus on learning new things and challenge myself intellectually
- No, I haven’t hit F.I.R.E., in fact, I’m still paying off a lot debt. But, I decided 5 years ago to do things differently. What did I do that may help you change the course of YOUR life?
- Before I thought about quitting my job I did the following for several years
- Strategically used my vacation time/PTO and optimized 3 day weekends so that they would become four day weekends.
- Asked for time off or half-days based on weeks where I worked way over the normal allotment of work hours. So, if I worked a 60 hour week, I would ask to have a half day on Friday or the entire day off on Monday.
- I began focusing on interests separate from my job. And, I developed skillsets that my employer wouldn’t add to my job description
- The new interests that I was focusing opened doors to new personal and professional opportunities.
- Before I thought about quitting my job I did the following for several years
- Opted to live in my tiny place-It’s not for everyone and I plan on remodeling it this Spring (fingers crossed) But, my tiny place is a third of what most people pay in Denver for rent on a monthly basis.
- Lowered my overall monthly expenses. Here are some that I’ve cut extensively
- Phone bill-I used to pay $107 a month with Verizon, now I pay $35 a month with Google Fi (click here for more information or to sign up) and I can use the phone in Europe as long as there is WiFi. Savings of $864 a year
- Groceries-I cut my monthly grocery bill by cutting the number of times I went to the grocery store each week. I also use Ibotta to save money and earn money back.
- I do my own hair and I stopped buying expensive wigs. Sandy Smith got me hooked on some great websites so that I could have fun with hair without going broke. I’ve experienced some hair loss and this is a great way for me to feel good about how I look. I spend about $250 a year on hair. And, I save a lot of time because I take care of it myself.
- Attend fun free events in Denver. There are so many things to do for free that it’s mind blowing.
- Currently I am part of a carshare. I’m estimating that I will spend about $1,000 on transportation costs for the year including light rail fares.
- I’ve stopped shopping for the most part even though I love fashion. I’ve earned a lot of credits for ThreadUp, one of my favorite online consignment sites, so many of my clothes I’ve gotten for free.
- Paid off debt with that savings
- Traveled unconventionally in order to hack the costs
- I made sure that quality wasn’t affected as I made mindful switches. For example: I still grocery shop at Whole Foods.
- Nick True from Mapped Out Money recently shared a video about his Slow FIRE journey and how he’s done things similar to me in order to live his best life now as he builds a financially independent life. I’ve included the video at the end of the show notes-it’s a must watch.
- I’m not Financially Independent-I’m working towards that. In fact, I’m paying off a large amount of debt (fingers-crossed) at the end of this month. Once that’s paid off I will have 5 bills left after dealing with well over 30 creditors. My goal is to finish paying off 3 of those bills by the end of 2019.
- Let’s be VERY clear-My F.I.R.E. won’t even begin until I pay off my debt. THEN, I still will have to factor in my mother’s retirement number into my plans. This is not unusual for many people (F.I.R.E. or not) especially people of color.
- Knowing that I have more to factor into my F.I.R.E. plans-I focused on my quality of life.
- I still work-but, for myself. Ironically, it looks like I’m steadily on track to make significantly more than what I used to make at my old job. Especially as I look at projected earnings over the next year.
- The irony that I’m living my F.I.R.E. life now isn’t lost on me-while working towards Financial Independence.
- Slow F.I.R.E. gets it right because it encourages people to:
- Live your best life now
- Look for opportunities to create the most optimal lifestyle you can based on your career. Some jobs just aren’t flexible. You may end up asking yourself if it’s time to find a new position that does?
- Be clear about why F.I.R.E. appeals to you. I’m living my dream lifestyle minus the $1 million dollars in retirement. I’m working towards that end goal. And, I have the energy and focus to do that now that I’m not worried about having a heart attack at work or a 4 hour commute.
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I am an obsessive foodie, but not self-righteous with it, love travel, meeting new people, helping you look good, and am freaked out by people who don't enjoying reading...something! Grab a Perrier, read my blog, feel free to drop me a line! Hope to hear from you soon.
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