💎 Why It Matters
Time is your most valuable resource.
🔍 Problem
We spend most of our lives working with hopes to reach financial independence in our 60s.
We may be financially wealthy but time poor by then.
💡 Solution
FIRE (Financial Independence Retire Early) is about living intentionally.\
Financial independence helps you focus on non-financial forms of wealth.\
Such as time, health and relationships.\
To reach FIRE:
The "25x rule" (or 4% rule) is based on the Trinity Study. Focused on a mix of stocks and bonds.
🏁 Players
Examples
Roshida - A lawyer took time off to travel with $660,000 in investments. Then retired to Mexico City at 39 years old.
Amy - She went from waitressing to becoming a social media manager. She reached a six-figure net worth by 25. Amy is aiming for 7 figures by 36.
Lynn - A nurse reached financial independence and describes her state as "work optional." She decided to continue working.
Amon and Christina - This couple had a combined income of less than $100,000/year. They retired at 39 and 41. They now live in Portugal with two kids.
Bianca - This flight attendant made less than six-figures a year with children and reached financial independence.\
Notable Figures
Scott Rieckens - Author of Playing with FIRE
Brad Barrett - Co-founder of ChooseFI
Rich & Regular - Financial independence lessons for the Black community
Vicki Robin - Co-author of Your Money or Your Life
Paula Pant - Founder of Afford Anything
🔮 Predictions
☁️ Opportunities
🏔️ Risks
🔑 Key Lessons
😠 Haters
"This takes too long."
Time will pass whether or not you're financially independent. Or stressing about money. You can cut years or decades off your FI journey by making more, saving more and cutting expenses.
"I don't want to cut expenses."
You don't have to. Focus on making more, saving more and setting an aggressive savings rate. There's FatFIRE. Which focuses on making and saving more. Instead of only cutting expenses. There's no wrong FI number. Your number is your number.
"This is only for people who make lots of money."
There are examples of those who reached FI with modest incomes. A high income can help. Making more is in your control. Earn more if you prefer to hold this belief.
"Money isn't everything."
There are other forms of wealth. These types of wealth are easier to optimize for once you reach financial independence.
"I don't want to retire."
*Most who reach FI (financial independence) don't RE (retire early). They have optionality. They can take breaks. Or quit. They can do what they want to do. Not what they have to do.
🔗 Links
🙏 Thanks
Thanks to Stewart Townsend (Podcast Hawk), Jeremy Abraham (Spiffy), Brad Barrett (ChooseFI), Scott Rieckens (Playing with FIRE), Miles Beckler, Ashwin (Trends.vc), Yarty Kim (A4E), Michael Pearson-Adams (MPA Fine Art), Sean Hua, Shayla Price (PrimoStats), Mike Privette (Return on Security), Edward Mcenrue, Evangeline Gersich (Bungalow), Christophe Williams (Cedar Labs), Mark Podolsky (The Land Geek), Robbe Richman (The Culture Blueprint), Domen Kert (500 Startups) and Roald Larsen (Untaylored). We had a great time jamming on this report.
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I think FIRE should be everyone's baseline. Manage your finances such that even if you never hit it big, you'll still eventually achieve wealth.
Thanks!