Financial Independence Retire Early

FIRE is a movement that is growing and becoming a quite large group of people with the same goal: To become financial independent and retire from their everyday job.

There are as many takes on FIRE as there are people in this group. Everybody has their own journey – some manage to save 70% of their income, some have the dream but doesn’t execute.

My take on FIRE

I don’t go all-in regarding FIRE. I live a “normal” life with a normal budget. I am frugal but we take trips to see the world, eat good food, buy help for cleaning etc. The consequence of this is, I won’t retire early or as early as many other bloggers out there.

But how can I say, I am on my journey towards FIRE, if I will never reach it?

To answer that, I need to explain that I differ between dreams and goals.

In my point of view, goals is something you achieve. Like my goal to do an Ironman triathlon. I prioritized this and set up a plan to achieve this goal, which I did in 2015.

Dreams are something you, well, dream about, but is ok if it never happen. I dream about diving with a whale shark but I’m totally fine if it will never happen. The same with FIRE.

FIRE motivates me to think about my spendings and only prioritize the things that matter. FIRE motivates me to invest, and this will have a good impact on my economy down the line. I don’t believe the journey and struggle to reach FIRE is worth it, if you don’t have fun along the way and live a life, that you are happy in.

Our financial approach to FIRE

Reading about FIRE was a gamechanger for me. I read the book “ERE” by Jakob Lund Fisker, and it was the wildest reading experience ever for me. The book spoke to me, and I felt that w´this book was a extension of many of my points of view on life in general.

From that day I looked at my spendings in a new way. Together with the book “Rich Dad, Poor Dad”, Jakob’s book changed how I look at money. Now I see money as either a liability or an asset. If I invest it becomes an asset – everything else is a liability.

I also decided to make some goals and pay myself first. The latter is a great way to start putting money to work. I allocate an amount of money to save every month and the money is withdrawn the first day of the month. That way I won’t notice it’s gone.

I then added a twirl to that story, and every month I distribute what is left on our normal account to our savings account and to our investing account. This money kind of feels like free money. We have bought and spent everything we wanted to in the past month, but we still have money on our account. It really boosts our investing ability. In some months it is a lot and in other months it is nothing.