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FIRE - Financial Independence, Retire Early
Rank: New-farer Joined: 4/8/2019 Posts: 36
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The FIRE movement has gained in popularity during the COVID pandemic. A dedicated thread is however still missing here on Wazua. Until now, that is. A quick introduction for the unacquainted: The ideas originated in the US and were popularised by among others, -Vicki Robin and Joe Dominguez, https://yourmoneyoryourlife.com/
-Jacob Lund Fisker, http://earlyretirementextreme.com/
-JL Collins, https://jlcollinsnh.com/about/
-Mr. Money Mustache, https://www.mrmoneymustache.com/
The core is lifestyle design by minimising spending and maximising savings or cash flow so as to achieve FI (financial independence) and RE (retire early). Also often expressed as being work optional or owning your time. In practice this is most commonly done by accumulating a portfolio of least 25 times one's estimated annual living expenses, investing in low-cost index funds and withdrawing 4% from it annually for the rest of one's life. This last approach is best captured by the Bogleheads investment philosophy [after John C. Bogle, founder of The Vanguard Group]. https://www.bogleheads.org/wiki/Main_Page
Clearly, the information above is primarily suitable for people living in the industrialised world. This thread invites contributions from everyone, but particularly those living outside the industrialised world and are already pursuing FI or are interested in the ideas. If you think you can you're right; if you think you can't you're right.
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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Nifiche wrote:The FIRE movement has gained in popularity during the COVID pandemic. A dedicated thread is however still missing here on Wazua. Until now, that is. A quick introduction for the unacquainted: The ideas originated in the US and were popularised by among others, -Vicki Robin and Joe Dominguez, https://yourmoneyoryourlife.com/
-Jacob Lund Fisker, http://earlyretirementextreme.com/
-JL Collins, https://jlcollinsnh.com/about/
-Mr. Money Mustache, https://www.mrmoneymustache.com/
The core is lifestyle design by minimising spending and maximising savings or cash flow so as to achieve FI (financial independence) and RE (retire early). Also often expressed as being work optional or owning your time. In practice this is most commonly done by accumulating a portfolio of least 25 times one's estimated annual living expenses, investing in low-cost index funds and withdrawing 4% from it annually for the rest of one's life. This last approach is best captured by the Bogleheads investment philosophy [after John C. Bogle, founder of The Vanguard Group]. https://www.bogleheads.org/wiki/Main_Page
Clearly, the information above is primarily suitable for people living in the industrialised world. This thread invites contributions from everyone, but particularly those living outside the industrialised world and are already pursuing FI or are interested in the ideas. This is what I was trying to explain to the ferras in the Tbills and Bonds thread lakini wakaleta ujuaji. You cannot achieve F.I.R.E at 10% Annualised. But imagine compounding 50% PER MONTH for 5 years. After those 5 years you can even have a ten year holiday in Bora Bora or the beautiful San Blas! But the best they could respond with is "we are lazy (ati peace of mind)" and "NKT" as that is the limit of their thinking  so who can help them?  In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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amorphous wrote:Nifiche wrote:The FIRE movement has gained in popularity during the COVID pandemic. A dedicated thread is however still missing here on Wazua. Until now, that is. A quick introduction for the unacquainted: The ideas originated in the US and were popularised by among others, -Vicki Robin and Joe Dominguez, https://yourmoneyoryourlife.com/
-Jacob Lund Fisker, http://earlyretirementextreme.com/
-JL Collins, https://jlcollinsnh.com/about/
-Mr. Money Mustache, https://www.mrmoneymustache.com/
The core is lifestyle design by minimising spending and maximising savings or cash flow so as to achieve FI (financial independence) and RE (retire early). Also often expressed as being work optional or owning your time. In practice this is most commonly done by accumulating a portfolio of least 25 times one's estimated annual living expenses, investing in low-cost index funds and withdrawing 4% from it annually for the rest of one's life. This last approach is best captured by the Bogleheads investment philosophy [after John C. Bogle, founder of The Vanguard Group]. https://www.bogleheads.org/wiki/Main_Page
Clearly, the information above is primarily suitable for people living in the industrialised world. This thread invites contributions from everyone, but particularly those living outside the industrialised world and are already pursuing FI or are interested in the ideas. This is what I was trying to explain to the ferras in the Tbills and Bonds thread lakini wakaleta ujuaji. You cannot achieve F.I.R.E at 10% Annualised. But imagine compounding 50% PER MONTH for 5 years. After those 5 years you can even have a ten year holiday in Bora Bora or the beautiful San Blas! But the best they could respond with is "we are lazy (ati peace of mind)" and "NKT" as that is the limit of their thinking so who can help them? Pesa ni zako ama ni zetu?  possunt quia posse videntur
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Rank: New-farer Joined: 4/8/2019 Posts: 36
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Nifiche wrote:The FIRE movement has gained in popularity during the COVID pandemic. A dedicated thread is however still missing here on Wazua. Until now, that is. A quick introduction for the unacquainted: The ideas originated in the US and were popularised by among others, -Vicki Robin and Joe Dominguez, https://yourmoneyoryourlife.com/
-Jacob Lund Fisker, http://earlyretirementextreme.com/
-JL Collins, https://jlcollinsnh.com/about/
-Mr. Money Mustache, https://www.mrmoneymustache.com/
The core is lifestyle design by minimising spending and maximising savings or cash flow so as to achieve FI (financial independence) and RE (retire early). Also often expressed as being work optional or owning your time. In practice this is most commonly done by accumulating a portfolio of least 25 times one's estimated annual living expenses, investing in low-cost index funds and withdrawing 4% from it annually for the rest of one's life. This last approach is best captured by the Bogleheads investment philosophy [after John C. Bogle, founder of The Vanguard Group]. https://www.bogleheads.org/wiki/Main_Page
Clearly, the information above is primarily suitable for people living in the industrialised world. This thread invites contributions from everyone, but particularly those living outside the industrialised world and are already pursuing FI or are interested in the ideas. As a keen admirer of Jacob Fisker's philosophical approach, this is probably my favourite blog post in the FI-space: www.getrichslowly.org/early-retirement-extreme/And this documentary is an example of what I think is easily possible for us Kenyans: www.youtube.com/watch?v=KeL8SpwZPtIIf you think you can you're right; if you think you can't you're right.
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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amorphous wrote:Nifiche wrote:The FIRE movement has gained in popularity during the COVID pandemic. A dedicated thread is however still missing here on Wazua. Until now, that is. A quick introduction for the unacquainted: The ideas originated in the US and were popularised by among others, -Vicki Robin and Joe Dominguez, https://yourmoneyoryourlife.com/
-Jacob Lund Fisker, http://earlyretirementextreme.com/
-JL Collins, https://jlcollinsnh.com/about/
-Mr. Money Mustache, https://www.mrmoneymustache.com/
The core is lifestyle design by minimising spending and maximising savings or cash flow so as to achieve FI (financial independence) and RE (retire early). Also often expressed as being work optional or owning your time. In practice this is most commonly done by accumulating a portfolio of least 25 times one's estimated annual living expenses, investing in low-cost index funds and withdrawing 4% from it annually for the rest of one's life. This last approach is best captured by the Bogleheads investment philosophy [after John C. Bogle, founder of The Vanguard Group]. https://www.bogleheads.org/wiki/Main_Page
Clearly, the information above is primarily suitable for people living in the industrialised world. This thread invites contributions from everyone, but particularly those living outside the industrialised world and are already pursuing FI or are interested in the ideas. This is what I was trying to explain to the ferras in the Tbills and Bonds thread lakini wakaleta ujuaji. You cannot achieve F.I.R.E at 10% Annualised. But imagine compounding 50% PER MONTH for 5 years. After those 5 years you can even have a ten year holiday in Bora Bora or the beautiful San Blas! But the best they could respond with is "we are lazy (ati peace of mind)" and "NKT" as that is the limit of their thinking so who can help them? You cannot achieve F.I.R.E at 10% Annualised. But imagine compounding 50% PER MONTH for 5 years. This is relative and not absolute. If someone is happy with 10% let it be. If another is happy at 50% let them be too. Happiness and related self actualization is complex. "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Member Joined: 8/29/2008 Posts: 573
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Gathige wrote:amorphous wrote:[quote=Nifiche]The FIRE movement has gained in popularity during the COVID pandemic. A dedicated thread is however still missing here on Wazua. Until now, that is. A quick introduction for the unacquainted: The ideas originated in the US and were popularised by among others, -Vicki Robin and Joe Dominguez, https://yourmoneyoryourlife.com/
-Jacob Lund Fisker, http://earlyretirementextreme.com/
-JL Collins, https://jlcollinsnh.com/about/
-Mr. Money Mustache, https://www.mrmoneymustache.com/
The core is lifestyle design by minimising spending and maximising savings or cash flow so as to achieve FI (financial independence) and RE (retire early). Also often expressed as being work optional or owning your time. In practice this is most commonly done by accumulating a portfolio of least 25 times one's estimated annual living expenses, investing in low-cost index funds and withdrawing 4% from it annually for the rest of one's life. This last approach is best captured by the Bogleheads investment philosophy [after John C. Bogle, founder of The Vanguard Group]. https://www.bogleheads.org/wiki/Main_Page
Clearly, the information above is primarily suitable for people living in the industrialised world. This thread invites contributions from everyone, but particularly those living outside the industrialised world and are already pursuing FI or are interested in the ideas. This is what I was trying to explain to the ferras in the Tbills and Bonds thread lakini wakaleta ujuaji. You cannot achieve F.I.R.E at 10% Annualised. But imagine compounding 50% PER MONTH for 5 years. After those 5 years you can even have a ten year holiday in Bora Bora or the beautiful San Blas! But the best they could respond with is "we are lazy (ati peace of mind)" and "NKT" as that is the limit of their thinking so who can help them? You cannot achieve F.I.R.E at 10% Annualised. But imagine compounding 50% PER MONTH for 5 years. This is relative and not absolute. If someone is happy with 10% let it be. If another is happy at 50% let them be too. Happiness and related self actualization is complex. You are right about 10% returns, but we also have high risks, high returns in equities. In Wallstreet and and NSE. So, relax, chill.
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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Gathige wrote:[l
This is relative and not absolute. If someone is happy with 10% let it be. If another is happy at 50% let them be too. Happiness and related self actualization is complex.
Agreed Gathige, everything in life is complex, some are even happy losing money every month so I wasn't specifically talking about kutosheka. My argument is that ceteris paribus and starting from the same base, achieving FIRE on 50% pm is possible and on 10% is next to impossible otherwise everyone on the TBills thread would have been retired by now In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Member Joined: 8/29/2008 Posts: 573
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amorphous wrote:Gathige wrote:[l
This is relative and not absolute. If someone is happy with 10% let it be. If another is happy at 50% let them be too. Happiness and related self actualization is complex.
Agreed Gathige, everything in life is complex, some are even happy losing money every month so I wasn't specifically talking about kutosheka. My argument is that ceteris paribus and starting from the same base, achieving FIRE on 50% pm is possible and on 10% is next to impossible otherwise everyone on the TBills thread would have been retired by now what makes you think that we are not retired?
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Rank: Member Joined: 8/29/2008 Posts: 573
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Ali Baba wrote:amorphous wrote:Gathige wrote:[l
This is relative and not absolute. If someone is happy with 10% let it be. If another is happy at 50% let them be too. Happiness and related self actualization is complex.
Agreed Gathige, everything in life is complex, some are even happy losing money every month so I wasn't specifically talking about kutosheka. My argument is that ceteris paribus and starting from the same base, achieving FIRE on 50% pm is possible and on 10% is next to impossible otherwise everyone on the TBills thread would have been retired by now what makes you think that we are not retired? I'm seated at home watching as you commit suicide by working during a pandemic.
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