Independence

Inertia is difficult to overcome.

The second law of physics says that an object remains at rest unless acted upon by an outside force.

In our increasingly comfortable existences we need these jolts to force us to think and re-evaluate certain aspects of our lives.

Sometimes its just a small incremental change that is needed.

Sometimes its bigger more fundamental changes that is needed.

Running away, riding a bike for a couple of years and generally dispensing with a conventional lifestyle opted me out of those woes.

Yet you can only run away with your troubles for so long before you find yourself back in the same place, facing the same set of challenges.

What I really sought was independence, a magic money tree that would solve all my problems.

It wasn’t until I began to read more widely that I came across the term ‘financial independence’.

Reading David Sawyer’s book introduced me to the concept of ‘FIRE’ a concept that deeply resonated with me at the time.

For those unfamiliar with FIRE it promotes the idea of cutting expenses, reviewing your spending and generally stockpiling enough money as possible until eventually you reach your mythical sum and hey presto all your troubles fade away.

Atleast that is the way I saw it, and judiciously started down a that path.

I paid myself first, bumped my pension contributions and started to create spreadsheets that would track my net worth and collated them each month with religious fervour.

Once the dust settles what many come to realise is that FIRE is a long (and often boring journey).

Many will take the best part of a decade to work towards ‘their number’.

The accummulation phase becomes the ‘boring middle bit’, a nod to this slow and steady process of compound interest that needs to happen.

Two years in to the journey, as the stock markets wobble and inflation bites you begin to find yourself staring at your spreadsheet slackjawed as your FIRE date slips back every month.

FIRE is over simplified

Reach your number and you’re sorted, you’ll never need to work a day again in your life.

Maybe that is true if someone is aiming for FatFIRE but the majority of people aren’t focussed on retiring with millions in the bank, instead they want to the pain of full time employment to stop as quick as possible, thats why a varying array of terms have been coined like CoastFI, BaristaFI.

For many the numbers are too large and the sacrifice too real, leading to people making severe compromises about an attainable number that leaves them at the mercy of escalating costs and inflationary pressures.

FIRE is about frugality

Most peoples first point of reference is about frugality, dramatically shrinking your expenses to substantially increase your savings rate.

This increased savings rate creates momentum and enthusiasm, but this continued monk mode existence over a long period of time creates a burn out.

Whilst it may be sustainable for several months, as it plays out year after year people begin to lose a sense of perspective.