Many years ago I came across a well-known short story about the meeting between an American businessman and a laid-back fisherman. The American shares his experiences with the fisherman about how the fisherman can succeed and finally retire in peace and quiet, dozing off in the sun. The fisherman points out that he already does that. Many of us may strive to get a good education so that we can get a good job, maybe a job that you don’t enjoy. Then we will work until retirement, before we can finally sit back and enjoy life, for those who are lucky enough to reach retirement age. In the search for a better alternative, I found the FIRE movement. It is about saving as much as possible, with the aim of achieving financial independence long before retirement. FIRE stands for financial independence, retire early or financial independence, retire early. With smart moves, you can stop working at 40. Why should I retire early, you might be thinking now. For many, FIRE is not about the freedom not to work, but not having to work for someone else. Do not be bound to 8-16, five days a week, until the age of 67 years or more. What would you spend your time doing if you didn’t have to work to earn money? Perhaps you have an idea that you have never been able to realize, a hobby project that you do not get to practice or simply a wish for more time for family and friends. Or as Finansnerden calls it: “Fuck you-money”. The core of FIRE is about building up a large enough fortune or passive income to support oneself without having to work. Some manage this by creating business models that pay out money long after you actively work on it. Among other things, I myself have put a lot of effort into so-called “print-on-demand” services, which sell products with your own design. When you have saved up enough funds, it is common to invest in other markets, which can give returns, such as rental properties or the stock market. The most common way to achieve FIRE is to save and invest at least 25 times your annual expenses (known as the 4 percent rule). Historically speaking, you will be able to use the return on such a fortune to cover your living costs, without it becoming empty. There are both advantages and disadvantages to FIRE. On the positive side, financial freedom can give me the opportunity for a more fulfilling life, but the road to FIRE can require a lot of sacrifice. With the savings goals I have set for myself, I may have to lower the priority of what I indulge myself in today, both in terms of free time and excesses, but I will reach the goal faster. The key is to find the balance that works for you. In the first instance, it can be a good deal of money to save on fixed monthly costs such as mobile subscriptions, insurances, electricity or simply by switching to another bank. There is no reason to be a loyal customer, when there can be a lot to save. Most of us spend more money than necessary on the “other” item, which includes food, clothes, electronics, alcohol and nicotine. The 50 kroner you don’t spend five days a week in the canteen can grow over time into sums you can invest. The less you get used to living on per month, the faster you will be able to achieve the wealth you need for financial freedom. If I see a nice bubble jacket in the sports shop I think; do i need it? Then I calculate that I have to work 20 hours to be able to afford the jacket, and make do with the one I have. I used to shop because I wanted to, I don’t anymore. In Heinrich Böll’s 1963 short story, the wealthy American businessman represents FOUR, while the moral points more to the fact that one does not need success and money to live a happy life. Society has changed a lot since then. Both the fisherman and the American agree that happiness in life is about doing what you want, but the way to get there is different. The FIRE movement is not for everyone. For example, I don’t want to retire as early as possible, but rather be able to work on my interests and enjoy it, rather than striving for money. Financial freedom may mean something different to you, but we can all learn to spend money on what really matters through FIRE. We can cut out what does not bring us joy, and have a greater focus on reuse and a greener lifestyle.
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Live the dream – Speech
