Hello Grasshoppa,
I don’t remember the exact date or year when I decided to start my FIRE journey but I do remember my Eureka moment and it was when I read The 4-Hour Work Week by Tim Ferris. The book explains a lot about how we can work with minimum working hours yet we are able to earn & travel the world. Since then. I have been using some of the learnings that I learnt from that book and applied it to my daily work life & also my side hustles. My ultimate goal is simple, I plan to retire early & travel the world comfortably. To achieve that, I have come up with multiple plans which are saving money, investing & other side business which I can still run while travelling. For some people, it may sound impossible, but it is proven to work for people that I know to run some sort of business or job that allows them to work remotely & travel.
That is my definition of my FIRE journey. This sounds like a decision that I made yesterday but as easy as it sounds, I have been planning & working on this for as long as I can remember. Replacing my current full-time job is not easy as I have other commitments such as house and car loans & other expenses. If I were to quit my current job, I would be losing at least 70% of my current income & this will definitely affect my savings & investment for the future. In order for me to achieve my Financial Freedom & Retire Early, I have to ensure that I have ongoing income that is able to replace my current full-time income. It will also be a bonus for me if my housing loan & car loan is cleared by then.
In 2019, I wrote on my actions so far to achieve Financial Freedom. There are some changes since then, especially due to my commitments have increased due to my old car issue. In 2020, I bought a new car after my old car completely broke down. Aside from that, I have also started another new side hustle.
What Have I Learned So Far From My FIRE Journey?
1. Everyone Defines FIRE Movement Differently
Speaking to a friend of mine recently on his FIRE journey. He mentioned that with the calculation that he made, RM800,000 is enough for him to survive for the rest of his life with no commitments. For me, RM4million is the minimum amount that I need in order for me to retire comfortably with no commitments. There are also different terms that are used for those FIRE movements. For mine, it is called FAT FIRE.
2. Everyone Starts & Ends Differently
Never compare your FIRE goal with others. Some of them may achieve theirs earlier than others & some may only be starting later than others. It is best to focus on your own FIRE journey & benchmark your current portfolio performance based on your last year’s portfolio performance.
3. Everyone Handles Their FIRE Portfolio Differently
The beauty of the FIRE Movement is, you get to see everyone handle their FIRE portfolio differently. As most of our life goals are not aligned, we should not copy others’ FIRE method. It can be used as a reference but it should not be copied 100%.
4. Be Focused
There will be times where life will carry you to a different path but if FIRE is your long term goal, you should always align your current path with your FIRE journey.
5. Never Give Up
There will be times where things will be tough. The pandemic year has been a tough year for all of us but you should never allow any obstacles to get in your way. You will get there slowly but surely.
6. It Is OK To Tweak It From Time To Time
There is no such thing as a confirmed plan. We can plan all we want but always be prepared for any possible changes. Even if you are not prepared, always be open to change when it is needed. The pandemic situation has changed some of my plans & also affected my savings. Rather than focusing on the negative side of it, I choose to focus on what I can do better during this tough time to ensure that I am still focused on my FIRE journey.
Conclusion :
The FIRE movement is definitely not for everyone as everyone has different goals in life. For me, the reason I want to achieve it so I can travel the world, train BJJ & spend more time with my family. I’ve seen many people work their whole life & they only enjoy their life once they retire at age 55 & above. That’s if they have a sufficient amount of savings, but if they don’t some of them may still continue to work until they can’t work anymore. I personally don’t find that as the life that I want to live. That is why I choose to plan my retirement early & embark on the FIRE journey. If you ask me whether it is tough? My answer is yes. While some people rest after their working hours, I am still hustling with my other side businesses. While some people are spending their weekends resting, I am also working on my blog & my side businesses. I am trying to do as much as I can to ensure that I am able to achieve FAT FIRE when I turn 40. Whether or not I can make it, it all depends mainly on my actions for the next few years.
OSS!
