So I have been following the FIRE movement for about 10 years now, and it has been amazing to see it really gain momentum. FIRE for those not yet indoctrinated stands for Financial Independence and Retire Early. Conceptually, the goal is to accumulate enough assets through savings, investments, and various income sources to not be dependent on your primary paycheck to cover your expenses.
So, when these assets produce enough income to cover all your living expenses for the rest of your life or in perpetuity you have succeeded at becoming financially independent and could retire early if you so wish.
There are blogs about retiring by 40 on a $50K a year income, about no longer exchanging your time for money, or how this is your F@#K you money allowing you to get out of the rat race.
I take a different approach, I focus more on the FI (financial independence) part over the retiring early. This blog is intended for High Earners, Not Rich Yet (HENRY) households. It is about balancing the spending habits of HENRY households with the sacrifices needed to achieve financial independence.
For me, being financially independent is both a psychological comfort and a way to buy back my time.
I have no plans on retiring early. Like many professionals who have invested a lot of time and energy into their skillset, it is a love-hate relationship. There are the reasons for developing that skillset in the first place, and then there is the drudgery and the ugly aspects of the profession. For me, it’s medicine.
I love the care of patients, the gratitude when you impact their lives in a positive way, and how you get to connect with another human being that you genuinely care about. Patients can see when that is the case. What I do not like is the endless paperwork, the increasing encroachment of insurance into deciding who gets what care, and the internal politics of jockeying for positions within our professional societies.
HENRY households have the means to become financially independent, but often not the psychology, the knowledge about investments, or the role models to emulate. What they tend to have in abundance is natural intelligence, ability to analyze data, and discipline.
- Psychology
- Knowledge about Investments
- Role models
Follow this blog to learn more.