Monthly Archives: August 2018

FIRE.063 80% and NOW!

Leave a reply

Life Is So Great.  As I was sitting in the spa (‘Jacuzzi’) at the gym after my lap swim the other day, I did my 10-minute meditation/mindfulness/gratitude session.  Somewhere during the swim/meditation, I started thinking about the luxury of being engaged in activities that are of my choosing—for my betterment— at a time that I chose…right in the middle of the day.

To put these thoughts in perspective, daily life can be somewhere between an amazing Saturday and Christmas.  It’s somewhere between a great day and a gift day.  Or more specifically, an absolutely amazing gift, maybe one of the best gifts you can have.

  • How can someone get this gift for themselves and family? What would this gift mean to you and your family?
  • What does it take to leave the formalized workforce?
  • Do you have to have a “magic number” to allow “retirement?”
  • Do you have reasons you’d want to be a non-working, full-time life-living person?

WOW, that’s so many questions, with so many possible answers.

If you had a magic number for retirement, and a whole list of activities you’d like to do, then it seems like you just need a date to start that new lifestyle.

I’m assuming the magic number you’ve created—possibly based on the 4% rule of thumb—is the main consideration because, after all, without money, you’d just be a bum instead of FI.  Or, are those different at all?

My question is, would you live a little lower level of lifestyle to not have to work again?  Could you live on say, 80% of your current spending in order not to go to work each morning/each day?  Could you be happy with a little lower (or significantly lower) level of lifestyle?

There are so many articles that base your retirement expenses at 80% of your salary.  To me, it’s quite scary to think that most people spend ALL of their money, or most of it.

    I guess the 80% is based on:

  • 65% going to SS,
  • 5% to work expenses and
  • 10% to savings…everyone’s saving at least 10% right?
  • (Quick calc: saving 10% means after 8 yrs of saving you’ve earned 1 yr of retirement?)
  • (Quick calc #2: after 40 yrs of saving, you’ve earned 5 yrs of retirement.)
  • (Quick calc #3: saving 50% of income for1 yr, you’ve earned 1 yr of retirement.)
    • [Ignoring growth/inflation]

So it’s easy to see there are opportunities to live a lifestyle now that will set up an amazing lifestyle in the future.  But, don’t forget to enjoy each day now.  Over-sacrificing now may seem like punishment, making the FIRE goal less valuable overall.

The new quote I love:  “What a wonderful life I’ve had!   I only wish I’d realized it sooner.” – Colette.

So, could the Pareto 80/20 principle work for you?  Could you hit 80% of your “magic number” and forgo 20% of your lifestyle in order to FIRE sooner?

I definitely believe the best things in life are not money driven.  However, it’s really great to have some money around…

 

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

FIRE.062 CampFI…Mind Blown

14 Replies

72 hours of amazing!

Last weekend I joined 60+ AMAZING people for a weekend of…well, when I really think about it, was a weekend that’s almost indescribable.

  • It was a group of people “taking control of their financial lives in order to build an amazing future.”
  • It was a group of people who have vastly different lives and experiences, all of whom are locked into a better future and
  • It was a group of people who probably ranged in age from 20’s to 60’s. A group of ages where anyone of any age could talk to another person of any age, and it was extremely easy and valuable for both.

Before I go any further, I want to say that I wasn’t able to talk to everyone.  Here’s the kicker, this strikes me as surprising that I noticed my disappointment of not being able to engage with 100% of everyone.

I normally don’t talk to many people.  I usually choose to listen to conversations and try to be a participating-observationalist.  I’m quite introverted in real-life.  Yet it was easy and actually energizing to converse with probably 65% of the group over the weekend.

At CampFI, with ALL the freaking amazing people I wanted more.  I asked questions, probed into people’s lives, asked for stories, and it seemed we all opened up, I’d bet more than—or much more—than we normally would to other people we’d meet.  I felt truly connected to this group as a whole and individually.  Many people attending now know more about my life and thoughts than anyone outside of the Camp.

Everyone I spoke with was very smart, sharp, well spoken, logical, thoughtful and probably the best part, super funny, snide, witty and spot on with their jokes/comments.  I laughed so much, even with people I’d just met minutes before.

Here’ the deal: presentations, pop up breakout sessions, small group gatherings, board game groups, hiking/running/biking/meditation/yoga/drinking groups, LONG meal discussions in the cafeteria which could last until the NEXT meal, group discussion standing outside at 1am because people can’t make it back to their room, and my fave (the worst part?) was the “goodbye” announcement that took 45 minutes or so.  It’s the people you meet.

Over the weekend I noticed EVERYONE that I spoke with I made a connection.  Actually, I felt a core connection with each amazing person speaking with me.  This connection and interest seemed to happen nearly immediately.  There was a genuine interest in that person’s life and path.  The connections came in many different areas of life, but I believe all were forged due to a common core value we all hold.

This internal power, being in control, being better, working to be even better, being different than so many others just turned out to be the deep value we all possess and could feel from each other.

There were also some connections that went truly deep.  Someone who just seemed to have a similar situation with me.  A conversation that could have gone on for hours, or possibly did.  A connection that will continue in the future, and most probably in person again—not just online.  I just think how special that may become.

I feel the bottom line is, not very many people think about FI and the power it entails (yet?).  This large group understands, and there is a bond between us.  I’m going to find those connections at future CampFI’s because I want (need?) this “tribe.”

To the extra special few:

Quick thanks to Stephen for the bias for action to set up these camps (side hustler, but for our benefit).  The connections we all made, make a difference.

To Brad and Jonathan for thinking up a great ‘generic-ish/inclusive’ podcast that is engaging for such a wide breadth of interest…you have solidified ideas and sparked change, and linked together so many thousands (and possibly hundreds of thousands) of lives.  My hat’s off to you both.  Truly world-changing—for decades in the future.

The takeaway:  Find others like you.  Go to the meetings if you have a group nearby.  Go to CampFI or a similar even if you can.  Even if you’re not a social person, continue to surround yourself with people like you, or people you’d like to become, and expand your group of those who have the same core values.

“CampFI…You’ll sleep when you get home”

 

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.