I didn’t know what early retirement was until October of 2012. I had a very bad, no good, terrible day at work and googled something like:
How do I retire early?
Up came Mr. Money Mustache and JD Roth, two fellows who had retired early. My first thought was this:
What kind of scam have I stumbled upon? When does the sales pitch come??
And then I read MMM’s post on the 4% Rule and realized that FIRE is nothing more than a simple math problem.
I was fully onboard from that moment on. Since I was already a saver and had worked my ass off, I had $586,043 saved up along with $150,000 in home equity. It was off to the races.
Phase 1: Running Away
I’m not happy at work. I need to get away. Now. But what am I running to?
I don’t like uncertainty, so I was more than a little terrified. I considered staying at work, deleting the blog (what the hell do I tell the readers?), and disappearing into the night. Luckily, I didn’t do that.
Stage 2: Finding Meaningful Work (Loving Certainty)
The answer of what retired Carl should do was in front of me the whole time:
The blog is what you like to do. No need to delete it. Keep going! Talk about life post-job.
OK. that was settled. Phew. I could now retire and not be a basket case.
Stage 3: Finding Random Work (Embracing Uncertainty)
When you don’t have a job, you have the time to go on long walks that don’t have a destination. With time bandwidth comes mental bandwidth. When you have mental bandwidth, you become more creative. When you have time for creativity, you come up with all kinds of fun ideas and projects. Some of mine include:
- Trailer Park (or Elevated Living Estates to the ultra-politically correct): This thing has started to crank out cash. Woot! Even though I don’t actively manage the ELE, the investment took a lot of time to analyze.
- Coworking Space: I’m very bullish on Longmont, from both a residential and commercial perspective. So, I jumped at the chance to own a building and the coolest business I can imagine. I call it a coworking space and it is certainly that, but it’s also a social club, idea factory, tool library, and gym. Our members are a fantastic group of humans.
- Podcast: I’m thrilled to be launching a podcast with some of my favorite friends, Craig Curelop and Miss Mazuma.
- Webcomic (I WILL get this thing out the door on or before 1/1/2020).
- Live-in flip: A couple of weeks ago, we made an offer on a home and then learned it had a lot of issues. We adjusted our offer significantly downward and expected it to be rejected. However, the sellers agreed to the new price. BOOM! If all goes according to plan, we’ll take ownership in less than two weeks. This is a very recent development and I’ll have MUCH MORE to say about it including documenting the entire remodel (finish a basement with a new bathroom, rehab the kitchen and three existing bathrooms). Sidenote: In the meantime, is there anyone out there with good design skills? I can build, but I’m terrible with design. If you’d like to help me design my basement, kitchen and master bath, hit me up here.
- Brewery: This is the idea that’s the craziest. I started talking about it as a joke, but then some friends took it seriously, so we are going to try to make it happen. Plans are loosey-goosey at the moment, but perhaps a FIREy brewery will launch in 2020. As a sidetone, one of the best parts of life is collaborating on interesting projects with like-minded friends (Hello Mr. WoW, Big Ox, Brad, and Eric).
The big message here is this: All of these things happened because I didn’t have a job.
There is just no way I’d have time to review a deal, produce a podcast, work on a home, or any of those other pursuits with a job. Hell, I don’t even have time to do these things now!
Queue the Early Retirement Police!
Side note: Am I really retired? Not in the traditional sitting-on-the-beach-drinking-crap-with-umbrellas-in-it sense. I work at a lot of different things and I’d have it no other way. Meaningful work, where happiness is the goal instead of money, is the most satisfying way to live. The funny thing about meaningful, happy work is that it has a habit of generating money anyway. Toss it on the pile.
Stage 4: Giving Back
I feel so fortunate that my life has turned out the way it has. I’ve mostly lived according to my own rules and the first 45 years have been a good run. Lately, I’ve started to think about deeper questions like this:
What is my mission statement?
Here is what I’ve come up with:
I want the world to be a better place because I lived.
Now, that’s a broad statement and that mission can be taken in a million different directions. Here are some ideas:
- Financial Education: I write about money. Should I try to help others sort out their financial lives?
- Give Money Away: If investments continue to do well, I’ll die with a lot of money. Which worthy organization is the best to leave it to and how do I do it?
- Help My Community: At FinCon last week, I had a good conversation with Marla about how we could encourage/help the FIRE community to make positive change in the world.
Anyway, Stage 4 is still a work in progress. However, it is fun to think about.
Your Why Of FI
How about you? Some questions for you to ponder in the Comments section:
- Why did you decide to pursue FIRE?
- Which part of FIRE is more important to you; the Financial Independence or Retire Early part?
- Have your goals or motivation changed along your journey?
- Are you a hopeless planner like I used to be or do you live life by the seat of your pants?
I’ll feature the best answers next week.
Join the 10s who have signed up already!
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*Only if your life is pretty bad to begin with.
I decided to give it a go because I realized that a few years of living in the South in the mid-’00s, sharing a house with a colleague and making a third of what I do now, was one of the best times of my life. The realization that I could live that way now with my wife — with a few solid tweaks like ACTUALLY SAVING MONEY and OWNING A MODEST HOUSE — led me to believe that it might work out really well. Fortunately for our marriage, it has!
I’m 100% on team ‘financial independence’. Retiring early will be great, but the freedom of knowing that I *will* or *could* retire early has already paid dividends in my satisfaction with life. And I’m definitely a hopeless planner; the spreadsheet right now shows we’re 41.1% of the way there, and I celebrate every tenth of a percent. 😀
“…was one of the best times of my life.”
A simple life is a happy life!
And 41.1%! Ha! With any luck, the second half will go a lot faster than the first.
41.2% today! KEEP UP THE GOOD WORK VTSAX
Congratulations on the new home. That will keep you busy for a while. I think it’s great that you’re keeping busy and taking on new projects. I’m much more low key. Blogging, taking care of the kid, coach soccer, and fixing up our home is already stretching me to the max.
Joe recently posted…August 2019 Goals and Financial Update
Sometimes I think that I should take a lesson from you…
In any case, we’re going to do this remodel on our own terms (slow) and enjoy life.
I am still in Phase 1 running away from work! Looking forward to phase 2, current plan is freedom May 28, 2024
Sometimes our parents can teach us a whole lot about money and sometimes they can teach us nothing- which taught me a whole lot about money. I decided to pursue FIRE after watching my parents struggle with money their whole lives. I saw myself going down the same ridiculous money-spending path and realized it was making me just as unhappy as they were. Plus a lot of designer clothing is secretly ugly, so there’s that.
Haha, some folks teach us what to do; others teach us what not to do. You can learn from anyone!
“Plus a lot of designer clothing is secretly ugly, so there’s that.”
#truth
You know, the question of what I will do after FI has never perplexed me – my days off now are filled with other projects I’m working on: website, podcast, learning to code, guitar, building projects around the house, running my slow bike group (though I nixed that one this year after five years, sadface). Serving on a medical school board and a dinosaur museum board. Those are just a few of the things I can think of. There are plenty of things I’ve put off until FIRE too. My why of FI is so I can get to those things on my list. Not to mention live life at a slower pace and have less excuses to use my car over my bicycle.
BC @ FrugalWheels recently posted…Frugality is the cure for Nature Deficit Disorder
Sounds like you’re not going to be bored, even for a second.
If your life works out as mine has, you’ll somehow find yourself with even less time after you leave. No idea how that worked out…
I could very much see that happening. Funny I just came across this post, and then saw my response to it! I had a mini-FIRE recently, with my hours reduced to part time for about a month, and I definitely never got bored! I dove into writing music again, something I hadn’t done in 15 years. And I spent more time growing the blog and podcast, thing I’m hoping will pay off down the road.
So now I’m curious: Is the podcast live now? And did the web comic ship? I would love to check out both.
BC | FrugalWheels recently posted…Productivity punishment and the encouragement of mediocrity
Since you asked….
I decided to pursue FIRE because it seems silly not to, considering I never found my dream job and working all the time doesn’t really afford me the opportunity to do so now.
Financial Independence sets up everything else for me, so….I’m currently 141.9% LEAN-FIRE, 113.5 FIRE% and 90.8% FAT-FIRE, meaning I could quit at any time, but will try to stick to my planned exit for EOY, 2021.
My goals and motivations have become far more family and self-centered since starting on this journey. Oddly enough, I believe it’s made me a better person, father and husband as I’ve began to focus more on finding out what really makes me happy and fulfilled.
I’ve found that I’ve shifted more from hopeless planner to flying by the seat of my pants since starting down this path, which is opposite of what one would expect. Strangely enough, the more I give away and do for others on this journey, the more I seem to accumulate, so I’ll stick with that for the time being….
Best of luck on your ongoing life of FIRE. It’s certainly a huge motivation for me every time I log onto your site and see your progress.
.
JRobi recently posted…Weekly Retrospective….
I was going to retire back home in Hawaii….after a full 30+ year job. I had a friend at work that was on the cusp of doing that…Maybe 3 years left…he’d talk to me about Hawaii all the time. And then one day he was found dead at his desk (literally) by the cleaning crew. That’s when I knew 1. I wasn’t going to wait till traditional retirement, and 2. I’d move while still working. The problem is that at the time I’d have to travel to dc almost every month on my own time and my own dime just to keep my job. Sure I’d been reading FI blogs before that, and hadn’t any inention of retiring early, but could I really keep up travelling like that into my 50s and 60s? No way. So if I could get FIRE in 10 years, I could put up with it that long.
I anticipate stages 2 & 3 being the most difficult. I know when I stop working my full time job, I’ll want a break to just have fun, but I’m sure I’ll get bored of that within a few months and want some work that fills a sense of purpose. I have a list of ideas, some from volunteer areas that I’ve enjoyed and would love the time to dive in deeper and some jobs that seem fun or interesting to give a try if I can get accepted. However, there is also that area of keeping an open mind to what comes up. I anticipate that no matter how much I plan for my FI life, it’s not going to be like I expect and I want to be open enough to accept, adjust, and enjoy that yet not so open that I find myself stuck in a rut or heading back to stage 1 and returning to full time work.
Financially Fit Mom recently posted…Here’s My Number (and it’s not my Net Worth)
I am 1400 days to freedom, but am considering cutting that in half, putting me at leanFIRE 9/2021. FI is where I am happiest, RE is a little less certain or comfortable as security is a big part of how I operate around $. Being FI has taken that stress away from me, I am teaching because I still love it, the toxic, frustrating parts can’t hurt me as much because I have the option to say When!
“…the toxic, frustrating parts can’t hurt me as much because I have the option to say When!”
Yeah! Being in the position of power is everything!
Goal is to fire before I am fired
FI is the most important part
My FI number has increased
I really just want a 100% unemployed insurance plan!
I’ve always been a saver who wanted to retire long before 65. A health crisis and some shitty behavior by the leadership at my company helped me decide that I wanted out as soon as possible. I would be 261 days from freedom, but we decided to take a detour to live in London for a few years to have an adventure. So I will keep working as long as we are having fun, probably around 2 years before we quit and head back to the US to be FIREd.
Once we FIRE, we will still do work of some kind, we both have side hustles that we plan to grow once we have more time to devote to them. We are both DIYers, so I would love to do a house flip of our own, hoping you share all the details on that project! I will have to convince my husband on that idea. We might get jobs at small local businesses to reconnect with our community after being away for a while and because I think it sounds fun to work at the wine shop/cookie bakery/library for a few hours a week. I would also like to get involved in teaching financial literacy in our community somehow, still need to figure out the best way to make that happen. I learned from my parents, but I have many friends that learned nothing and I have tried to help figure out their financial lives. There is a gap in the system.
I agree with M above that you learn money management (or lack of) from your parents. I am lucky that my parents are savers and DIY’ers. Also, my dad retired at 55 and then retired from his second job at 58. I have 4.5 years until I can retire at 56 & 6 months. I’m staying these last years to be able to retire and carry the health benefits into retirement – which is really important to me and I’m extremely lucky to have that opportunity.. Honestly, both parts FI and RE are equally important to me since there have been people I know and/or work with that die relatively young (40’s, 50’s, 60’s). I want to enjoy life 100% under my control, while I am relatively young – volunteer at humane society/library, go for long walks mid-morning, continue my ebay selling (side hustle), etc = RE. Since I am single, I have only my savings, pension and SS to fund the rest of my life = FI. I am a definite planner on the fiscal side, but do fly by the seat of my pants in other areas of my life. Last year I took at 15 day vacation to Sydney, Australia (bucket list item) after I stumbled across a round trip great airfare. I live near a regional airport, so great airfares to overseas don’t come around often. I stayed at an Airbnb and was able to see so much of Sydney and experience living with a great Aussie family. Five years ago, I never would have taken that trip, because I would have worried about the money too much. I finally realized that if I don’t start going to places I want to go to and doing things I want to do – I might not be around to do them.
Congrats on buying the house – waiting to see the before photos. So, are you selling your house soon? or do you have to live in it awhile since the new house needs a lot of fixing? Good luck and FYI – I’m halfway through the book – Quit it like a millionaire!
THIS POST. This is wisdom on a platter; thank you so much for writing it.
The why: I was commuting 2-3 hours each day, depending on traffic, to a job I loved for the moment but was consumingly stressful and had no trajectory I wanted to traverse. I had a newborn baby I saw for 30m-1h each day. I could see no end to the hamster wheel when, of all places, on a Mormon-leaning vegan recipe site I stumbled across a link to MMM. It felt like the skies had parted and *the way* had revealed itself to me.
Being able to pursue how I wanted to spend my time, not how I needed to spend my time, was the most liberating idea I had ever heard of.
The part most important: Financial Independence, all the way. I couldn’t care less about the retirement part; it’s the making your own choices part that turns me on.
Initially, I wanted to pursue FIRE so I could spend all day with my baby. Now that she’s a little older, and we’re still on the journey, it’s gotten to be more about my life quite honestly. Envisioning how I want to spend my time and skills in the way that maximizes my little lifetime.
And, hopeless planner all the way. Are there really seat of your pants FIRE-ers?
“It felt like the skies had parted and *the way* had revealed itself to me.”
YES!!!! We all owe a lot to The Mustached One.
“I couldn’t care less about the retirement part; it’s the making your own choices part that turns me on.”
Hell yes.
“Now that she’s a little older, and we’re still on the journey, it’s gotten to be more about my life quite honestly.”
The fun part is the evolution/ going with the flow. It’s fun to be open and go where life takes you. For me, that’s owning a coworking space, working on a home, and also a couple of new websites. The important part is that FI gave me the time to pursue these things.
Really nice comment by the way! Perhaps you should be the writer here instead of me! 🙂
Don’t encourage me! I’ve been toying with starting a blog for YEARS and nearly wrote what first popped into my head after reading this: You’ve inspired me to actually do it. : )
Sadly I’d be one of those annoying bloggers with emojis plastered over the faces in their pictures since my real job involves standing in front of juries representing the man. Not as compelling as real faces + dinosaurs.
But thank you!
Hmmm, those emoji bloggers can be pretty fun! don’t sell yourself short. And, there are enough dinosaurs to go around for everyone. You really can’t have too many…
Why did you decide to pursue FIRE?
In a word, “control.” (cue the Janet Jackson). Control over my time (to spend more time with family and friends, in nature, volunteering, an pursuing passion projects), (more) control over my level of work-related stress (I currently work in a high-stress industry), and (more) control over my family’s financial security.
Which part of FIRE is more important to you; the Financial Independence or Retire Early part?
FI, no question. RE is but a happy byproduct that can be taken at will.
Have your goals or motivation changed along your journey?
My goals and motivations have always been about the control items mentioned above.
Are you a hopeless planner like I used to be or do you live life by the seat of your pants?
I like to put a high-level plan in place before embarking on a journey, with some details added. But the details (including those provisionally in the framework) largely are subject to change and on-the-fly decisions based on any number of new factors/considerations. This allows me to head in a reasonable direction from the outset and to have default plans, but to be able to react to events as they occur and optimize along the way. To put it another way, I try to limit how much of a bumbling idiot I can be. That’s no small feat.
I first came across the idea of FIRE in 2012 after a particularly horrible at work. I think I googled something along the lines of ” I f-ing hate work, what do I do” and that got me to one of MMM’s posts. And, the rest is history. Similar to you Carl, hubby and I have always been frugal so it definitely helped with the progress.
At the beginning of the journey, I was very excited about RE. However, in the past year I have been thinking about what comes next. Now, with 2 more months to go before I hand in my notice, I am more excited about the “FI” part. I am not sure of the “RE” part. I am only 33 so I still have plenty left in me to do other stuff. I think I’m using this opportunity to explore what I want to do. I also started a blog but with a countdown clock to ensure that I stick with the goal of leaving work by a certain date.
I guess that’s the beauty of FI, it gives you room to take a breather and think. Who knows, I might miss office life and return to it after a period…. but I don’t know that at this point.
Thanks for the shout-out Carl (and for listening to my blather)! It is exciting to think about Stage 4 and really trying to make a difference. I think the secret is working together. Great seeing you and Mindy in DC!
Yeah!! So much going on right now for you. I’m excited to be part of the new podcast and would also love to help you designing/tearing up the new place. I love a good flip!!
FI for me is truly about making choices about life, independent from choices about money (if that makes sense). FI mindset has meant I took the plunge on part-time working (9 day fortnight, and then further to 4day weeks), giving me a much-needed day at home doing ‘life admin’ for our little family. The next step will be really scaling back when our daughter goes to school (2022), meaning we are looking now at how do we buy our first home and throw as much money at it as possible in the next three years (New Zealand property market being a little bit mental right now, this is a scary mid-six-figures decision!). The next step is “Work:Optional” in 2033 (a ‘big’ birthday for me :). None of these things will mean the “RE” side of the equation, but the FI is way, way more important and useful to us right now.