It has been a slow build up to starting this blog. I’ve wanted to start one for years, but kept going in circles on what I wanted it to be about. All of the topics I wanted to write about were seemingly different, and I felt unfocused. But over the past year, I’ve realized what all of the things I want to write about have in common…change; change in the way I live my life and change in how we live on this planet.
At some point not very long ago, I realized that my life could look different. I could design a life that was perfect for me, and it didn’t have to look like anyone else’s.
But I was stuck not knowing how to make that life a reality. I kept coming back to money as the roadblock. Nothing I wanted to do with my time seemed very lucrative.
Then I found blogs like Mr. Money Mustache and J.L. Collins that introduced me to the concept of FIRE (Financially Independent Retire Early). FIRE is saving and investing enough that the interest you’re making off your investments is sustaining your lifestyle without tapping into your principal. It’s most commonly achieved through investing in index funds.
Different FIREfluencers have different ways of achieving FIRE. Some add diversity by investing in a variety of index funds while others diversify with alternative assets like real estate. There’s no one size fits all. That’s the great thing about FIRE- you design it around the life you want now and the life you want in the future.
Some people manage to save 70% of their income and live frugally, but with a high quality of life. There’s often a deep appreciation for the simple things amongst this crowd. After all, time is the most valuable asset.
Others live large now but make enough that they can still bank a majority of their income. That’s referred to as FAT FIRE.
After making this discovery, I realized that I don’t necessarily need to find another source of income- I can build up a nest egg to support me while I pursue whatever interests I want. I can even calculate the exact number I need to become financially independent and it doesn’t seem impossible to achieve with consistency and discipline!
The Best Things in Life are Free
I already knew that I enjoyed the simple things. My version of a perfect day is spent waking up slowly, making a leisurely breakfast and eating it on the porch while I read a book, then putzing around the backyard all afternoon observing the progress of my plants. The luxuries I want in life are free (- a few minor exceptions) and I still have a strong desire to work.
But the COVID years made me truly grasp that tomorrow is never promised. The opportunities that are available today are not the ones that will be available next year. There’s no use in waiting- I’m hauling ass to owning my time while living a life I love in the meantime, focusing on what matters to me.
I don’t want a lot of material things, but I want security. And like many Americans, I can’t help but feel that I’m one medical emergency away from being broke.
I built my life up around security, and realized that nothing is actually secure. The corporate world may eliminate a lot of risks of being an entrepreneur, but there is no guarantee that you will always have a job. Just last year, I would’ve said a computer programmer would be the most future-proof job. Now ChatGPT is in full swing and though it can’t fully eliminate the need for programmers right now, it can significantly reduce the time it takes them to do their work and therefore eliminate many jobs. If you try Chat GPT even for a few minutes, it’s hard not to see all of the jobs it could quickly replace.
Nothing is secure. So why am I living a life that isn’t totally and completely the life I want to be living if nothing is guaranteed anyway? I can build my own security where I am not reliant on a job, and that’s what I intend to do.
So how much do I need to FIRE?
The lowest amount I am able to live off of and have a standard of living that I am happy with is $3,500/month or $42,000/year. But in reality, I prefer to spend closer to $4,600/month or $56,000/year. That is the amount that it costs for me to go to 2 dinners a month with friends, take a trip every couple of months, go to a concert when there’s a band I want to see. $56K/year is how much it costs me to live my definition of a nice life.
To calculate how much you need to FIRE, you multiply the amount you spend per year by 25 (more on that later), which for me is $1.1-$1.4 million. At my current salary and with my current amount in investment accounts, I could reach that in 7 years, assuming an average growth rate of 7% on my investments and a 4% withdrawal. But I have some life changes coming up and I know I will likely be unemployed for a period of time or earning a lower salary. After adjusting my salary down, it would take me 10 years. So I have 7-10 years to FIRE. I’m gonna settle on 8. I am 32 now and I’m challenging myself to hit $1,400,000 by 40.
My plan of what to do with my financial independence is not to be found 8 years in the future. I am passionate about so many things and I plan to to explore them as much as I can in the meantime.
Action is the Antidote
So much of my time is wasted doom-scrolling. There are many people who’ve achieved FIRE or great entrepreneurial success who say they don’t waste time following the news. They keep a pulse on things going on in the world, but don’t get sucked into the minutiae of daily happenings. I respect that. Frankly, the periods of time when I have gone without the news, I am much happier and I do have more energy to focus elsewhere. And it is a total time suck.
I don’t want to be emotionally drained by all of the heavy things happening in my country and the world, but I do want to be aware of them and find ways to take action. It’s impossible for me not to talk about these things because they are happening, but I don’t want to feel defeated or paralyzed on what to do. I want to be more civically engaged and find the most productive ways to affect change with limited time in the areas I’m passionate about.
And in order for this highly distractible person to achieve these lofty goals, I will need to change the way I live my life. No more staying up late, lacking focus, wasting weekends spending half a Saturday deciding what I want to accomplish. I’m going to have to change my habits, learn more efficient ways of doing things, and navigate it all while moving to another country.
This is my journey of designing the life I want and figuring out how to get it.
Follow along for what’s bound to be some entertaining lessons learned.
Can’t wait to follow along!
I’m excited to have you here for the ride!