When I first heard about Financial Independence Retire Early (FIRE) several years ago, I was all in. Gain financial independence as quickly as possible then have the ability to retire much sooner than most people. I still like the concept of FIRE and many of the principles around it but I’ve decided to slow it down, and here’s why.
Number 1: You’re Only This Age and Health Level Once
I try my best to stay in great health but I’m under no illusion that I can freeze time and stay this healthy forever. And most people don’t get healthier as they age, much like an older car doesn’t get more reliable with time.
I want to take full advantage of my age and health while I’m at these levels. I realize I might not be able to do some of the things I can do now when I’m 70, 80, or 90 plus. As a result, I’d rather spend some money now on things I can do now that I might not be able to do later.
Recommended Book: Die With Zero
Number 2: You Can Have Your Cake and Eat it Too
There’s the old expression you can’t have your cake and eat it too. I believe that’s true in some cases, but not all cases. When it comes to money, I think you can have your cake and eat it too. Here’s what I mean.
Pay yourself first into investment accounts. Then use leftover money for daily living and fun things like travel and experiences. With that system, you’re both investing for the future and living for the now.
When I first heard about FIRE, I was much heavier into investing than living for the now. I’ve since changed to still invest a good amount of money each month, but also leave a lot for the now.
Number 3: Life is Best Enjoyed Now
The future is great but there’s no time like the present. It’s important to invest and plan for the future, it’s equally important to enjoy the present day. Do your best to enjoy the day now.
Number 4: The Compound Interest Train is Moving Full Steam Ahead
Going all in on FIRE years ago gave me a big advantage today. The money I saved and invested at that time is now compounding. The fact that it was frontloaded is a big help.
Since the compound interest train is moving full steam ahead, I can contribute less (or nothing) and use more for today than if I didn’t frontload the money. This is a concept in Coast FIRE, although I’m still contributing a good amount to investments and don’t plan on stopping that anytime soon.
Number 5: Window of Opportunity With Kids
Kids get older and their interests change; there’s a certain window with kids that you can never get back.
- At some point your kids won’t want you to read them a bedtime story anymore
- Your kids will eventually want to hang out with friends more than you
- Your child will at some point walk across the street without holding your hand
- Trips to the waterparks and Disneyland won’t be as cool someday
Take advantage of this short window of opportunity and make sure to experience the experiences that are available for only a limited time.
Number 6: I’ve Skilled Up and Will Always Skill Up
I don’t know when it happened, but at some point I came to the realization that no matter how old and/or established I get, I have to keep skilling up. In other words, keep growing and improving.
As long as I keep adding to my skills, I believe I can find a way to make money. Financial independence can go away but my skills will never go away and will forever give me a chance to add value, make money, and thrive.
With my skills high, I don’t need to race to financial independence because I’ve got the confidence that I can always find a way to make it.
