A guide to FIRE: Financial Independence, Retire Early 🏖️

Interesting article and good to see it in the mainstream but as usual, too much focus on FIRE followers living extremely frugally and living miserable lives.


Have to agree - everyone’s most valuable resource is their lifetime.

Money only has value as an exchange token for experiences and goods to sustain and improve that time. Frugality doesn’t equal misery, but if it does, then you’re not really acting economically rationally.


This documentary on Netflix called Minimalism: A Documentary About the Important Things is great. If you like collecting books - collect books, but do you need 20 samples of shirts? etc etc. How much stuff do we really need because, ultimately, that’s what we spend a lot of money on, apart from rent and food.

Who said it first—Gary Vee or someone else—that, basically, your effective wealth = your Income - Expenses = Positive/Negative Number (regardless of how much you’re earning). Also, if you’re happy doing X that is bringing in thousands less to your bank account but you’re happy, then why not do that.

After all, we’re all chasing happiness.

“See the reality of your life for what it really is. If you are reading a CNBC article online while you sit somewhere in America, your life is likely better than 99 percent of everyone who has ever lived."

(Gawdat, ex-Google X, in an interview with CNBC, he is the author is this book on Happiness)


I highly recommend reading this guy’s articles. They are free. They are split into saving, earning (on the job), investing, and becoming financially independent.

He made his first million before turning 40. It was methodical, involved hard work, investing, studying Buffett etc. I came across him via CNBC’s Make It. He has lost a lot of money on the way but he seems disciplined.

We are biological creatures with a multi-million year-old brain, a computer, which follow habits we have developed mostly subconsciously. Taking control of the brain/the mindset is key. I think top pro athletes really pushed the envelope in that field and business people started following their methods.

“The only reason to save money is to one day invest money.”

In fact, how much you save and invest can be more important than the size of your paycheck. As personal finance expert Ramit Sethi writes in “I Will Teach You to Be Rich ”: “On average, millionaires invest 20 percent of their household income each year. Their wealth isn’t measured by the amount they make each year, but by how they’ve saved and invested over time.”


Some great articles there, cheers @engineer


Fantastic thread. My suggestion to those aged 20-35 would be to look at ways to raise your income just as much as saving. It may cost you a few thousands to take a particular course or take language classes etc but especially while you are younger it makes more sense to focus on things which can ramp up your earnings rather than saving every penny. This is often very hard to give advice in as it all depends on your interests, skills, expertise and options but I feel this is the downside of FIRE as it can make people think of putting money aside over the things which could accelerate earnings down the line and therefore make FIRE easier - of course there are never guarantees with anything :pray:t4:


Taking language classes to boost your income? Do you mean as a tutor etc?

Not sure what the original poster meant, but if you can speak multiple languages and still have your core job skills then your job prospects/salary can increase. This is dependent on what your skills are.

Don’t take the language example literally - I am not giving advice for specifics just saying that working on yourself to improve your skills is often a better option when younger rather than just saving every penny (which is what same take away from fire unfortunately)


Completely agree with that. Investing in and attending courses and learning new up and coming skills with definitely position you in a higher pay along the line. Maybe even there will be a business opportunity. Supply - Demand .

Go make a killing!

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In case anyone’s interested:


Super one-sided article.

These people took it to the absolute extreme and burned out. Therefore FIRE is rubbish.

Anyone worth half their salt realises fire is the only way to go for people in the Employee quadrant

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There’s no quick and easy way. If it was easy, everyone would be doing it.

Check out the “Guide” and “Popular” sections at the bottom of this blog by Rami Sethi:

Ramit Sethi has an updated book out too - it’s called I Will Teach You To Be Rich.

Successful people have a lot in common.

“Money is an important but a small part of living a rich life” :dollar:

Ramit talks about the “success rules” in this cheesy :cheese: video someone put together (see below).

In summary:

  1. Take baby steps - e.g. when it comes to savings, etc. Small steps, big results vs large steps from the beginning to develop new habits (usually this may not work in the long run).
  2. You are the average of 5 people you hang out with - spend time more with ambitious people but don’t close the door on your regular friends and family. That’s just science of networks, neuroscience. In the internet age, e-books and YouTube also work - they are full of mentors.
  3. (If you’re an entrepreneur) create the best products, select the best customers, service them in the best way.
  4. Develop your confidence - it’s about the mindset. Confidence is a skill you can learn practiced over lifetime.
  5. Be curious about why people would spend more on something (“the D to C principle”).
  6. Add value first.
  7. Learn to handle rejections.
  8. Get in control of your life. “Money is an important but a small part of living a rich life.” Be in control of your money irrespective of how much you earn.
  9. Find your mentors. They also live in books and online. “Why we do what we do?”
  10. Buy back your time. “A case against extreme frugality”. Set auto-savings (5-10% of take home income) and auto-investment (10% of take home income) goals and spend the rest of the money on what you like. E.g. hire a baby sitter, an assistant, buy good quality food, pay rent - all guilt free. That’s buying back time.

This one is quite good too:

Story telling works.

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1970 the salary was £1079 and house price £4056.


Mr Free at 33 (previously Dividend Mantra) gives his reasons why free stock trades can be a bad thing:


That’s interesting, When I was using HL I only ever bought £1000 worth or more shares at once, to ensure that the commission was small percentage wise.

I’m kind of finding myself still stuck in that mindset, although I’ve bought a few smaller speculative positions my default buying amount is still £1000