FIRE is HARD. My top four reasons why you’ll never regret going for it.

No one said it would be easy, But no one said it’d be this hard

Sheryl Crow

The title says it all. FIRE requires sacrifice in the present, mainly through not spending money on cool shit, in order to gain the benefit of a better life in the future. However, its worth it. Its possibly one of the most worthwhile pursuits you can make in life. Here’s why.

Reason #1: Time and money are interchangeable

Time and money seem very different things but when you think about it, they’re actually almost completely interchangeable. A job is a simple trade. You trade your time for your employer’s money. Alternatively, retirement is a trade where you trade your money, for the right to do whatever you want with your time.

Time is the most valuable thing any of us have, and the one thing that you cannot create any more of, no matter how hard you try. As such, it makes sense to retain as much of it as possible. But time isn’t free. Food costs money. A roof over your head costs money. That’s before we even get to the things that make life worth living: seeing friends, going on holiday, learning a new skill. Everything costs money.

Every pound saved now buys back a little more time and the earlier to save and invest it, the more time it saves. As we discussed in The Miracle of Compound Interest two hours of work saved at 20 equate to 7 hours of work you no longer need to do at 45.

So, we come to a simple equation. Time = Money or, more relevantly, Money = Time. The reason we strive for Financial Independence is not to be wealthy, its to buy our lives back. Its to be able to look back on our lives and say, “I lived it my way and I had a fucking great time” and not “I wish I has worked less and spent more time doing the things I enjoy with the people I love”.

Reason #2: It gives you control over your own financial destiny

We’ve all felt it. That creeping dread. It starts in your belly and creeps up your body as you lie awake. Eventually it forms a question: “Am I going to get fired?”, “How am I going to pay for that?”, “Am I a failure for not being able to afford the gift my kid wants?”.

For a lot of people, money is a source of stress, of worry. It doesn’t have to be. What this blog is working towards, what Financial Independence really is, is “Fuck You” money. What is “Fuck You” money?

Its the ability to be able to say Fuck You to anyone (within reason, don’t try it with the police) that’s trying to make you do something you don’t want to do. That could be your boss who wants you to work weekends. That could be your partner who says you can’t afford to leave them. That could the metaphorical personification of everything that’s holding you back from chasing a dream.

That’s the goal, but here’s the thing. Every step you take towards that goal gives you a little more power, a little more control. When you have a couple of months salary saved up, you can survive long enough without your job to get a new one. It gives you the power to quit. When you have a year’s salary saved up, you’re safe from the vast majority of career or monetary setbacks and can even afford to take a break. You may even, in a quiet voice, begin to whisper “Fuck You”. When you have ten years salary saved up, well, now you’re well on the way to true freedom.

Just by reading this blog and following some of the things it suggests means you’re already on the path to having your money be a comfort, a backup plan, rather than the thing that keeps you up at night.

Reason #3: The worst that can happen

Alright onto point number 3. Lets look at the worst case scenario: you never reach financial independence. Maybe the world conspires against you, maybe you never quite manage to save enough due to unexpected expenses, maybe you simply choose to spend more now rather than save for later.

Even in this worst case you’ll end up richer and much more knowledgeable about money. The capital you do save won’t disappear (unless you spend it). The knowledge you build about investing, finance and saving certainly won’t and it will help you avoid those corners of the market which prey upon the vulnerable and (through no fault of their own) ignorant (mini bonds, misuse of credit cards, payday lending, excess layaway etc).

If the worst case is a more comfortable retirement, a holiday home or being able to fund your kids university degrees, why not give it a try?

Reason #4: There’s only one way to win the game

The only way to truly win the game is to stop playing. You will never be as rich as the celebrities you see on Instagram. The celebrities on Instagram aren’t even as rich as they seem. The modern world has been curated to show you all the things you could have if you work harder, work longer, spend more.

If you really boil advertising down though, its really only selling you two things: sex and respect.

Thanks to speed limits a fast car doesn’t get us to where we want to go any quicker. Designer clothes don’t keep us warmer. We don’t sleep in a new bedroom each night to make sure they’re all being used.

What these things give us, or so we are told, is sex appeal and for other people to view us as “winners”. This is important. I’m not going to say the “MAN” has conned you and these things are empty. They’re not and we both know they’re not. We want beautiful people to be attracted to us. We want people to think we’re winners. The question I have for you, is what’s more likely to get you there?

A Mercedes coupe and gucci sunglasses? Or the ability to travel the world?

Bottle service at the best club in town? Or being healthy and fit because you finally have time to go to the gym?

Sending your kids to private school? Or being there for them every day?

The only way to win the game is to stop playing, but with a fat stack of chips.

Until next time.