One of the biggest draws for pursuing Financial Independence (FI) is the opportunity to retire early, also known as the “RE” in “FIRE”. Early retirement can mean a zillion different things, ranging from traveling the world to becoming a couch potato to starting a second career unconstrained by earning potential. For some, it’s a life of luxury, relaxation, and/or adventure, while for others it is simply a pivot in how they wish to contribute to the world on a daily basis.
Early retirement does NOT need to mean you can’t be a productive member of society. It simply means you have the option to contribute in any way you see fit.
So, what exactly is FI and how can it help you RE? FI is the point at which your passive income (income from investments, rental properties, or other sources that do not require your active participation) is sufficient to cover your living expenses.
Restated: You no longer have to rely on a traditional job to make ends meet. Any income becomes gravy if you enjoy what you do, where you do it, and who you work with.
While some people are blessed to work in a job that aligns their skills, passions, and desired compensation, a large part of the workforce would not say all three of these dimensions are satisfied. When you overlay additional happiness criteria of a great manager, great coworkers, and workplace flexibility, an even smaller population is living in workplace bliss.
Perform a short current state assessment. Do you love what you do? If yes, keep going! Do the best you absolutely can at the job you have and work toward greater responsibilities and raises.
If you are dissatisfied with your current role, ask yourself if the dissatisfiers can be remedied with the right conversations and the right moves. If you’re willing to have these conversations, make a plan and move forward.
However, you may be getting more than your fair share of baloney sandwiches (“BS”) in your workplace. If it can’t be fixed, or you’re unwilling to try (sometimes it’s best to cut your losses), it’s time to move on. Quitting your job can be a scary and stressful decision, especially if you have been working at the same company for a long time or if you are unsure of what you want to do next. However, life is too precious to waste on BS. While you must continue working, find another role that offers more fulfillment and better compensation.
As you gain earning power, resist the urge to increase spending, as this additional net income becomes “Freedom Unlimited” (FU) money. FU money will help you leave your job when the time is right. Remind yourself that once you’ve hit FI, you don’t need to put up with anybody’s BS unless you choose to do so. You can walk away - if and when you choose.
In parallel, start envisioning how you’ll spend your time when you’re not working nine-to-five (eight-to-six? seven-to-seven??). The clearer this vision and visualization becomes, the more real it will be to you. The more real it is, the more it will drive you forward. It becomes part of your WHY, and few things are stronger than a rock-solid WHY. Lock in your WHY, and take the next step forward to achieving FI.
Stephanie Brooke Lennon is the author of Family Bank Blueprint, GoldQuest, and What Would Water Do? Simple Strategies for Navigating Life's Obstacles. Her titles are available in Paperback and Kindle on Amazon.com. Follow Stephanie Brooke on Facebook, Instagram, TikTok, YouTube, Twitter, Amazon, and at BrookeLennon.com.