FIRE
Recently there has been a lot of talk about financial independence and retiring early. FIRE for short it seems. I know plenty of people around me who have achieved FI but are not RE simply because they are not geared that way. They want to be mentally stimulated at their jobs or businesses and they continue everyday despite being able to tell their bosses to FO.
My ex boss who was retrenched from the bank when he was in his 40s could have RE years ago. He had a world class education from USA, worked in a big shot investment bank in USA and then came back to SG as his parents are here. His house was fully paid up, he had multiple investment properties but he was a man I respected for many reasons.
He was highly intelligent but never stingy in mentoring me although he wasn't my mentor as my senior was supposed to do that instead. He was very frugal as he drives a second hand van, dresses simply and his wallet was falling apart but yet he doesn't change it at all. Yet, he treated us to meals and does charity work every week.
After the shock retrenchment at the bank, he didn't RE although he could have but instead he started his own business and is more successful than before. In fact, I remembered asking him why not RE once he told me how rich he was. But he said he would be bored to death which was when I told him that he should go and date somebody and get married!
Besides him, I know of another gentleman who could also RE at 40 after selling off his businesses. Instead he chose to invest and trade in equities which he has done for the past 30 years and counting, just to continue to have things to do on a daily basis, keep his mind active etc. He has pioneered a breakthrough methodology to make money on a consistent basis with minimal risk.
From the two of them, I learnt that being frugal is important and so is being mentally challenged or active as you would have so much time in a day and without some sort of routine or tasks that you have lined up for you, you tend to be bored after a while. There are many ways to become FI whether through career or business, it depends on the individual but you could surprise yourself when you have become FI as you may no longer want to RE.
Hi Joyce,
ReplyDeleteThat is so true. Once the worry of money is gone, we can truly follow what we want to do in life. If might be the current work, might be something you've always wanted to do but never got the chance to do. Everyone wants different things.
Thanks for stopping by la papillion. It's true that everyone wants different things. For these two men, I find that it was never money as the main motivator but more of a conscious need to be actively involved in something and if that something generates more $$$, all the better. I find there's joy to be found in work and in business if it's something that you want to do. If not I agree that it can be dreary dragging yourself everyday to exchange your time for money.
Deletegood examples there. its unrealistic to not do anything. most have the idea that you will relax on the beach for the next 40 years of your life. think about that. try doing it for 7 days.
ReplyDeletewhile we are on the topic perhaps you will enjoy this article
http://www.vox.com/2015/5/1/8518455/extreme-early-retirement
I did enjoy the article. I did some of the things listed such as wearing less makeup, buying less clothes etc, cooking at home more often and dining at cheaper locations etc. Its a lifestyle change which is a result of mindset change.
DeleteThe amazing thing of your mentor was that he drives a second hand van.
DeleteHaha yeah it's a white Suzuki van so that he can transport old folks wheelchairs etc although he can well afford more than a car being a millionaire many times over. But then ACCICB also told me of his ex colleague who was the head of a dept in a private bank who comes to work in a chauffeured rolls royce phantom. Different people but I'm sure both are millionaires many times over and yet their choices differ but both still actively working or in business
DeleteHi Joyce,
ReplyDeleteThat's why many people pursuit FI and not RE, that just wanted RE as a matter of choice, and follow whatever passion.
WHRC is what applied to me. work hard retire comfortably
Actually sometimes I think we should pursue what passion we have rather than waiting for FI. Just in case because you never know
DeleteHi Joyce,
ReplyDeleteI think RE can be interpreted as retiring early from work that you have to do to the work that you want to do. They might be still working physically, but because it's their passion, it might be so enjoyable that it's not considered 'work' at all. That is everybody's dream!
It's indeed everybody's dream that's why I admire those who just quit their jobs to do what their passion is despite the fact that they have not achieved FI.
Delete