Seeking FIRE \u2013 The Route to Financial Freedom<\/a>). But for the benefit of
\nnew readers, if I were to summarise the \u201chow\u201d into a one-liner, it would be to
\nlive frugally (>50% savings rate), invest nearly all your excess cash, and
\nconsistently buy a bunch of dividend-paying ETFs, no matter what<\/i>.
\nInvesting should be simple. Investing should be easy. And we don\u2019t have to
\novercomplicate that.<\/span><\/span><\/p>\nNow that we\u2019ve set the context for this post,
\nhere are the reasons why<\/i> I believe pursuing FIRE is a worthy cause.<\/span><\/span><\/p>\nFIRE means Freedom<\/span><\/span><\/b><\/p>\nSociety places an overemphasis on
\n\u201cproductivity\u201d. Go to school, get a job, and be a cog in this giant machine
\nknown as the capitalistic system. But why should it be this way? I think all of
\nus have an innate desire for freedom, to be set free from the shackles of the
\ncorporate world.<\/span><\/span><\/p>\nDon\u2019t you miss the carefree days as a student?
\nWhen I get asked the question of whether I prefer to be a student or to work,
\nit is clear to me that the life of a student is superior, by far. Work is
\nsimply a means to an end \u2013 earn a salary, accumulate cash flow generating
\nassets, and gradually replace your active income with passive income. <\/span><\/span><\/p>\nCurrently, you\u2019re exchanging your time for
\nmoney. At some point, don\u2019t forget to exchange your money for time. The latter
\nis exactly what FIRE is about \u2013 when your passive income replaces your active
\nincome, you\u2019re literally buying your own ticket to freedom. <\/span><\/span><\/p>\nFeel like doing nothing this week? Then simply do
\nnothing<\/i>! Spend your days in the library reading a book you love. Go to the
\ndriving range on a weekday afternoon when it isn\u2019t crowded. Maybe laze your
\nafternoons away at a beach club, getting that tan. Sit at a caf\u00e9 while sipping
\ntea and people-watching. It basically means doing whatever you want, whenever
\nyou want<\/i>. As long as it\u2019s legal, of course.<\/span><\/span><\/p>\nFIRE means you Have Options<\/span><\/span><\/b><\/p>\nIn my view, the clich\u00e9 \u201cMoney can\u2019t buy
\nhappiness\u201d, should read something like \u201cMoney may not buy happiness, but it
\nsure does make many things easier\u201d. In the case of FIRE, having a portfolio generating
\npassive income buys you options. I once came across an Instagram post that
\nmentioned \u201cA lot of things that require courage, can be achieved with money too\u201d.
\nQuitting a job without another one lined up? Money helps. Cancelling your wedding
\nat the last minute without regard for the sunk costs? Money helps. Moving to a
\nnew country to start afresh? Money helps.<\/span><\/span><\/p>\nHaving options give you the bargaining power to
\nwalk away when necessary. Unreasonable expectations from your manager? Quit.
\nOverwhelmed by your workload? Quit. Your company suddenly mandates 5 days a
\nweek in office for no good reason? Quit. Underappreciated and underpaid? Quit. And
\ntake as much time as you need to find a new role that suits you. Or perhaps never<\/i>
\nwork again. <\/span><\/span><\/p>\nThat\u2019s the power of having f- you money. One of
\nmy favorite scenes from Billions (S1E1) was Axelrod\u2019s \u201cwhat\u2019s the point of
\nhaving f- you money, if you never say f- you<\/i>?\u201d<\/span><\/span><\/p>\nFIRE means truly being able to Do What You Love<\/span><\/span><\/b><\/p>\n\u201cHustle culture\u201d has created a warped
\nperspective of hobbies. People that subscribe to this mentality become overly
\nfixated on finding \u201cside hustles\u201d and trying to monetise any hobby of theirs.
\nLove photography? Why not be a freelance photographer and start charging for
\nshoots? Love video editing? Why not be a freelance video editor and find
\nopportunities on Fiverr?<\/span><\/span><\/p>\nAttaining financial freedom (or at least Barista
\nFIRE) removes all these shackles of viewing things through a financial standpoint.
\nWork becomes optional. You\u2019re working because you want<\/i> to, not because
\nyou have<\/i> to. In the case of Barista FIRE, you\u2019re working only to fund
\nyour discretionary expenses. You have greater autonomy to pick what you love,
\nwith little regard for what\u2019s financially viable. If you\u2019ve achieved FIRE, then
\nyou don\u2019t really care whether what you\u2019re doing pays well or not. <\/span><\/span><\/p>\nI think two key questions to ask yourself are
\n\u201cWould you work at your current role for free?\u201d and \u201cIf you won the lottery of
\n$10 million, would you still stay in your current role?\u201d. You have your answer.<\/span><\/span><\/p>\nPersonally, I would do many things for free. I
\nlove writing. But writing this blog gives me near zero financial gain (I used
\nto run AdSense which pays a few dollars per month). Another thing I\u2019d do for
\nfree would be a career advisor \/ interview coach. I think I\u2019d do fairly well as
\none. Extremely ironic given the strong anti-work <\/i>rhetoric here, I know.
\n<\/i>But I do decently well at interviews. And I\u2019m always focused on the pay-to-effort
\nratio, which I think should be the basis for evaluating any potential
\nopportunities.<\/span><\/span><\/p>\nIn short, FIRE gives you the liberty to pursue you\u2019re
\nthe things you love, without the financial pressure. Perhaps being a Personal Trainer
\nthat takes just one client a day. Or volunteering frequently to help the
\nunderprivileged. Or travelling the world while picking up different languages. Whatever<\/i>
\nyou want, without the financial pressure. <\/span><\/span><\/p>\nFIRE means Being in Control<\/span><\/span><\/b><\/p>\nLet\u2019s face it \u2013 many things in life are beyond
\nour control. You could be the most hardworking person on the team, but if your
\nboss doesn\u2019t like you, then too bad, you probably won\u2019t be rewarded fairly for
\nthe effort you put in. That\u2019s beyond your control. You could be the most
\ncompetent team member, but passed up on promotion because someone else is a
\nbetter bootlicker or ass kisser. That\u2019s beyond your control. You could be the
\nbest interview candidate, but did not get the job due to nepotism. Again,
\nthat\u2019s beyond your control.<\/span><\/span><\/p>\nFIRE means putting that power back into your
\nhands. The ability to dictate the life you want to live, instead of being
\nbeholden to someone else. Not having someone else determine your destiny. It
\nmeans having the ability to say no. Saying no to unreasonable work deadlines. Saying
\nno, instead of feeling like you have to drink \u201cone more glass\u201d because your
\nboss asked you to. <\/span><\/span><\/p>\nFIRE means having a safety net<\/span><\/span><\/b><\/p>\nRecession \u2013 the scary word that\u2019s in many
\nconversations these days. Every week we hear of a different tech company laying
\noff employees. Job security cannot be taken for granted these days. \u00a0<\/span><\/span><\/span><\/p>\nIn Singapore, it is easy to be caught up in the
\nchase for material possessions. Wanting to project a certain ideal image of
\n\u201csuccess\u201d. Consequently, lifestyle inflation creeps in. Hefty mortgage payments
\nfor your multi-million-dollar condo where you only use the facilities twice a
\nyear. Loans for that Mercedes that you bought to impress your relatives once a
\nyear during CNY. Overextending your finances and overleveraging. And what
\nhappens when you lose your job? You\u2019re screwed.<\/span><\/span><\/p>\nFIRE means the exact opposite. It means valuing
\nfrugality. It means being wary of lifestyle inflation. It means valuing freedom
\nover material wealth. It means providing yourself with a safety net that
\ninsulates you from the economic cycle.<\/span><\/span><\/p>\nAnd what good does this bring? With this safety
\nnet, you can take as much career risk as you like. Pivot to a different
\nindustry without worrying about whether it\u2019ll work out. Or do a post-grad
\ndegree simply because you love learning. Or give a shot at entrepreneurship, knowing
\nwell that there are little consequences even if you fail. <\/span><\/span><\/p>\nWe all love a good rags to riches story of how
\nsomeone started with nothing, yet built a successful business. Jack Ma\u2019s story
\nof being rejected from the KFC job; waiting outside a hotel to practice English
\ncomes to mind. But statistically, entrepreneurs who come from wealth are more
\nlikely to succeed. FIRE gives you that safety net.<\/span><\/span><\/p>\nMy Job is not My Identity<\/span><\/span><\/b><\/p>\nI don\u2019t need a job to provide me with \u201cpurpose\u201d
\nor \u201cmeaning\u201d. I think these are just abstract concepts to keep people on the
\nhedonic treadmill. I don\u2019t need a job for my identity. I don\u2019t need to say \u201cI
\nwork at a Bulge Bracket Investment Bank\u201d or \u201cI work at a Tier 1 Consulting
\nfirm\u201d or \u201cI am an SWE at FAANG\u201d to feel that I\u2019ve \u201cmade it\u201d. <\/span><\/span><\/p>\nMy identity is made up of personality. My
\nhobbies. My interests. My talents. The experiences I\u2019ve lived through. My
\nrelationships with people. The lives I\u2019ve impacted (including you, reading this
\nnow).\u00a0 <\/span><\/span><\/span><\/p>\nI love the outdoors. I love various sports. I
\nlove learning new languages. I love watching documentaries. I love reading and
\nwriting. These are what matters most to me. I am intrinsically motivated by these;
\nnot titles, not awards, not money. Money is very important, but it is simply a
\ntool, a means to an end.<\/span><\/span><\/p>\nA valid question to ask here would be \u2013 why
\ncan\u2019t the above be complementary to a full-time job? You can still enjoy your
\nhobbies while being employed. Sure, fair point. But I think the response to that
\nwould be why<\/i> do we see employment as the status quo? The concept of the
\n9 to 5 work day only became mainstream during the industrial revolution \u2013 a schedule
\nfor labourers to work in factories. \u00a0<\/span><\/span><\/span><\/p>\nI envision FIRE to be a time when I have too
\nmany hobbies to pursue, but too little time. Not fearing retirement as a phase
\nwhere you\u2019ll be \u201ctoo bored\u201d.<\/span><\/span><\/p>\nSome people make their jobs their entire
\npersonality. They can\u2019t stop talking about work. About the \u201cimportant\u201d things
\nthat they\u2019re working on. <\/span><\/span><\/p>\nIf you need your boss to give you a pat on the
\nback and say \u201cWell Done!\u201d to feel appreciated, or if winning that annual company
\naward for \u201cGoing above and beyond\u201d gives you a dopamine boost, or if you need
\nto write a lengthy LinkedIn post about how you \u201cworked hard over the past year
\nto complete this deal\u201d to feel accomplished, then you are vulnerable. Because\u2026
\nall these can be taken away from you in an instant. Often through no fault of
\nyours. Restructurings, layoffs, bankruptcies are part and parcel of capitalism.
\n<\/span><\/span><\/p>\nI would suggest watching Sebastian Vettel\u2019s video<\/a> announcing his retirement from F1. A brilliant speech his on how his identity
\nis more than just his job. <\/span><\/span><\/p>\nYou\u2019ve probably heard the quote \u201cfind a job you
\nlove, and you\u2019ll never feel like you\u2019re working\u201d. But let\u2019s be realistic here.
\nThe hard truth is that there won\u2019t be enough dream jobs for everyone. The
\nmajority of people are simply working to pay the bills. <\/span><\/span><\/p>\nWhat if you love your job? <\/span><\/span><\/b><\/p>\nAt this point of the article, all those who
\nlove their job would have likely closed the webpage. Why aim to retire early if
\nyou truly enjoy your work? But if you love your job and somehow you\u2019re still
\nreading, here are my thoughts. <\/span><\/span><\/p>\nIf you love what you do, work with a great
\nleader, have good work life balance \/ flexibility, get compensated fairly and
\nhave great colleagues, then great, I am truly happy for you. But in this
\ndynamic world, anything can change instantly. Your great leader and colleagues
\nmay leave. Team morale drops. Workload increases. Budget cuts. Or some inevitable
\nrestructurings happen as mentioned earlier.<\/span><\/span><\/p>\nBased on anecdotal evidence from friends I
\nspeak to frequently (n<\/span>\u2248<\/span>20), maybe about a quarter
\nabsolutely detest what they do. They work in a shit job, get paid peanuts, or
\nboth. About half are neutral. Some just go with the flow and hold the view that
\nemployment is simply a means to earn a living and pay the bills. Some may still
\nhate their job, but they could be paid extremely well that compensates for
\nthat. The classic long hours, pressure cooker environment, but well compensated.
\nSome are genuinely lost and think that working till you\u2019re 65 is the \u201cstandard\u201d
\nway of living. Only perhaps a privileged few have found something they truly
\nlove. And I\u2019m happy for them.<\/span><\/span><\/p>\nA friend loved her job. Her role gave her the
\noption of flexible work for the past two years. She was doing well at her role.
\nBut out of the blue, her firm decided to recall everyone back to office 5 days
\na week, simply because they could<\/i>. Yet, her role involves frequent
\ninteractions outside the office, so it makes little sense for the team to work
\nfrom office the rest of the time. She has caregiver responsibilities for her
\nelderly parents and the previous flexible arrangements worked perfectly for her.
\nShe has tried to put in a request for hybrid work but was rebuffed. Stories
\nlike these happen all too often. \u00a0<\/span>\u00a0<\/span><\/span><\/span><\/p>\nThe bottom line is, you\u2019ll never know when you
\nneed your safety net. FIRE is that safety net.<\/span><\/span><\/p>\nAll in all, FIRE to me means freedom. It means
\npursuing what I love. It means having options. It means being in control. It
\nmeans acting in my best interests. It means being authentic. And I think that\u2019s
\nbeautiful. <\/span><\/span><\/p>\n<\/div>\n