Are you familiar with the cool movement called FIRE or Financial Independence Retire Early? As the word Early implies, it’s taken hold of a younger section of savers looking to get out of the rat race. They’re looking for their island life, if you will, and it’s a lifestyle I support a thousand percent.
For one, once you start thinking about living off your savings, you become serious about SAVING—a huge part of the process. But you also think twice about SPENDING and the benefit of deferred gratification you’ll FEEL.
This pandemic put FIRE strategies to the test—especially during the market crack in March. The hit suffered by index funds took a toll on those inexperienced in how difficult it is to be a long-term investor.
I love the idea of working for yourself and not paying for an education you can get on your own. The idea of a college education is going through its own realignment as we speak. Members of the FIRE group much prefer paying themselves rather than some fancy four-year tuition bill. That doesn’t mean they don’t get a college education. To the contrary, they do it on their terms.
If you’re thinking about retirement, you’ll benefit from the FIRE mindset. I was speaking with a client this week who told me he’s cutting back on some work responsibilities but is still in the game. It’s a way for him to adjust his working life to how he wants to live today—less travel and more time with family.
Getting back to the market crack in March. As you get closer to achieving your FIRE dream, you need to consider ways to keep your money safe. If you thought about selling in March or actually did sell, then a more balanced approach might be more suitable.
Action Line: What’s clear is the FIRE movement is alive and well. Doing more with less is something we can all get behind. Stick with me, and I’ll remind you how creative you really are. Click here to sign up for my Survive & Thrive newsletter for a monthly boost to your creativity.
Originally posted on Your Survival Guy.