Hi Jordan, this blog post is VERY misleading about what FIRE really is (sigh). Where to start? There are few FIRE rules, so not sure where these came from. But here are a few thoughts: (1) FIRE does not require a budget (ask Paula Pant about the anti-budget). Sure, many people track spending, especially those getting started on ordinary non-doctor wages where spending $5 a day on coffee out does add up. (2) Of course someone who makes multiple hundreds of thousands a year can spend half (living a lavish life) and still save a huge amount without a budget. Though I am baffled why you think $40K is the arbitrary FIRE number? (it's not) (3) It is a rare FIRE voice that says you can't earn any money after retirement, so again I am baffled that this is somehow a FIRE rule (it is not). (4) People make value choices of where they spend their money. As you mentioned in other posts, it is not spending money that makes us happy, so who cares about what we say "no" or "yes" to when spending money? In the end we in the FIRE community have all bought our time freedom. (5) After retirement, spend however you value your time. Before retirement, unless you make "doctor" money, spending money on nannies is a delay in the time to early retirement and won't work for many -- it not a rule, just math and a choice of when to achieve true time freedom vs. trying to free up 30 minutes from mowing the lawn (which can actually cost you more time when you think about how long an average person needs to work to pay for it! This is a choice NOT a rule! (6) How is spending money on your kids a FIRE thing? People outside the FIRE community spoil their kids (or don't). This is weird to suggest it as a FIRE rule (it is not). (7) FIRE is all about open conversations about money. So how is this against the rules??? Again I am baffled. (8) Having millions and living below maximum spend rate is a brag, but not breaking some "rule of FIRE." Lots of people decide on their safe withdrawal rate, many of which are overly conservative, but each to their own -- there is NO rule on this. (9) You completely miss the point of Perkin's Die With Zero book -- it is NOT literal to spend your last dollar taking your last breath (sheesh, can you let this misrepresentation go?), nor is it a FIRE rule book. The book provides some thought-provoking strategies to maximize our enjoyment of life. (10) Money=happiness is not a FIRE rule, though I agree many people including some in the FIRE community may think this. Happiness is different for each person. It isn't just relationships or purpose. It can also come from psychological richness through exploring, curiosity and a variety of experiences (good and bad) that make for a good life. I recommend reading Shigehiro Oishi's Life in Three Dimensions.
I am entirely with you on defying the rigid math to eliminate lifestyle friction.
I structure my own portfolio around a strict dual mandate to get this balance right.
First, I focus on cash-flow compounding for immediate daily flexibility here and now.
Second, I hold pure growth ETFs for that long-term security baseline.At the end of the day, it is all about prioritizing life return over paper return.
Why win the spreadsheet race if you are losing the life race?Awesome breakdown!
Hi Jordan, this blog post is VERY misleading about what FIRE really is (sigh). Where to start? There are few FIRE rules, so not sure where these came from. But here are a few thoughts: (1) FIRE does not require a budget (ask Paula Pant about the anti-budget). Sure, many people track spending, especially those getting started on ordinary non-doctor wages where spending $5 a day on coffee out does add up. (2) Of course someone who makes multiple hundreds of thousands a year can spend half (living a lavish life) and still save a huge amount without a budget. Though I am baffled why you think $40K is the arbitrary FIRE number? (it's not) (3) It is a rare FIRE voice that says you can't earn any money after retirement, so again I am baffled that this is somehow a FIRE rule (it is not). (4) People make value choices of where they spend their money. As you mentioned in other posts, it is not spending money that makes us happy, so who cares about what we say "no" or "yes" to when spending money? In the end we in the FIRE community have all bought our time freedom. (5) After retirement, spend however you value your time. Before retirement, unless you make "doctor" money, spending money on nannies is a delay in the time to early retirement and won't work for many -- it not a rule, just math and a choice of when to achieve true time freedom vs. trying to free up 30 minutes from mowing the lawn (which can actually cost you more time when you think about how long an average person needs to work to pay for it! This is a choice NOT a rule! (6) How is spending money on your kids a FIRE thing? People outside the FIRE community spoil their kids (or don't). This is weird to suggest it as a FIRE rule (it is not). (7) FIRE is all about open conversations about money. So how is this against the rules??? Again I am baffled. (8) Having millions and living below maximum spend rate is a brag, but not breaking some "rule of FIRE." Lots of people decide on their safe withdrawal rate, many of which are overly conservative, but each to their own -- there is NO rule on this. (9) You completely miss the point of Perkin's Die With Zero book -- it is NOT literal to spend your last dollar taking your last breath (sheesh, can you let this misrepresentation go?), nor is it a FIRE rule book. The book provides some thought-provoking strategies to maximize our enjoyment of life. (10) Money=happiness is not a FIRE rule, though I agree many people including some in the FIRE community may think this. Happiness is different for each person. It isn't just relationships or purpose. It can also come from psychological richness through exploring, curiosity and a variety of experiences (good and bad) that make for a good life. I recommend reading Shigehiro Oishi's Life in Three Dimensions.
This is a breath of fresh air, Jordan.
I am entirely with you on defying the rigid math to eliminate lifestyle friction.
I structure my own portfolio around a strict dual mandate to get this balance right.
First, I focus on cash-flow compounding for immediate daily flexibility here and now.
Second, I hold pure growth ETFs for that long-term security baseline.At the end of the day, it is all about prioritizing life return over paper return.
Why win the spreadsheet race if you are losing the life race?Awesome breakdown!
What age were your kids when you started sharing net worth details?
Early teens