There is only one ultimate reason – not enough passion to counter the pain.
In 1994 William Bengen, a financial advisor, articulated the 4% withdrawal rate as a rule of thumb. Two years prior, Vicki Robin and Joe Dominquez published the 1992 best-selling book “Your Money or Your Life”.
These two events served as the foundation of the FIRE movement for the last 25 years.
Many bloggers regardless of the state of their specific financial health, started to cash in the idea with variety of marketing schemes.
One of the most enticing among all the marketing strategies is illustrated with the picture below – a picture worth a thousand words.
And the financial independence math is undisputable.
So let me line up this psychological trap up for you!
If you unhappy with your career, regardless of the reasons, for a moment would you like to escape to this destination?
If you are unhappy with your relationship, regardless of reasons, for a moment would you like to escape to this destination?
If you are physically tired and mindfully depressed, regardless of reasons, for a moment would you like to escape to this destination?
These sample questions can be generalized as – if you are stressed, regardless of reasons, for a moment would you like to escape to this destination?
Let’s me answer this question for you with 99.9 percents in certainty – “YES”.
Do you know why it is only 99.9 percents? Simply put, there is nothing in life that is absolute!
Self-preservation is a built-in mechanism for all lives to move from stressful circumstances to joyful and carefree places – hence the FIRE market scheme is a very effective magnet for the mass. It just lacked of substance.
I will tell you the proper mindset for doing FIRE, but here is a quick illustration!
Before I elaborate on the mindset, I have to eradicate the perpetuate “BS” floating in the FIRE pool – the FIRE community helped the mass saved more.
Here is the statistic you can verify for yourself!
As I have said in the beginning of the article, the FIRE movement was sparked by the two events in the early 1990’s.
In 1990, the US personal saving rate is 8.8%. Guess what, it is the same saving rate last year 2018. As a matter of fact, from 1990 to 2007, the US saving rates dropped into the oblivion of an abyss, 3.7%.
Do you know what brought the US saving rates back up to the 1990 at 8.8 % level – you guessed it right, it was the Mother of Recessions, the subprime mortgage built-up prior to 2007 , not the FIRE movement.
Here is one of the side effects of FIRE because of the emphasis on the “Retire Early”.
I have personal met many of these youngsters, FIRE adopters, otherwise super bright kids, wandered the street of Southeast Asia on shoe string budgets.
I can only guess on this statistic, but most of them will return back home in the states and become financial burden to their parents when the FIRE extinguished.
Beyond the youngsters are the folks in the ages ranged from 30’s to 60’s – who are so gung-ho at getting to the Financial Independence finish line that they sacrificed their personal relationships with friends and family – worst of all, their health.
I am sure most of you have at some point of your life heard or read …
Pair this with another timeless quote…
With these two enduring wisdoms, you should be able to figure the next step in your personal journey toward Financial Independence.
I will end this article with a primer – passion is the key ingredient in the journey toward Financial Independence.
Is passion overrated? Absolutely no!
Can you find your passion? Absolutely yes!
Give me time, I will take you there.
Let’s play the game of life!
