FIRE is a journey toward freedom. It’s not just about “retirement” as many people think of it, or not doing anything. FIRE is the freedom to pursue your passions and not need certain type of job or paycheck to maintain a certain type of lifestyle. Finding freedom takes a lot of work and for some, and may be easier for others. The key pillars are the same regardless of your financial situation - Spending Less, Growing Wealth, and Finding Freedom.
The journey is different for everyone, as is the destination. Mike’s approach is technical, methodical and measured. Maggie’s is driven by minimalism and frugality. We both believe that controlling lifestyle inflation is the key to financial freedom and happiness. There is a way to go about a very happy life without spending 100% of your income. Parts of that can become isolating at times, but there are ways to get past that. Talking with your friends about money and the idea of financial freedom can help us all along our journeys, and we talk about how it has helped both of us. We also debunk the myth that happiness is tied to having more stuff.
We break down the 4% rule that many people believe is the key to retiring early. The goal is to get to 25X your annual spending amount, and then withdraw 4% each year. We think this is a bit aggressive, and we personally take a more conservative approach with higher savings goals. We talk about whether you include your house net worth in the math, how to think about retirement funds, and more.
On “Mike’s minute on the mic,” Mike talks about his biggest financial regret.
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Leave us a message: 404-981-3370
Visit our website: www.friendsonfire.org
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Other Links
Maggie’s Blog: Mostly Minimal Life
Mike’s Book: Your New Relationship with Money