Winter has arrived here in the northern latitudes and snow is on the ground once again. As I lament about the seasons gone and cold temperatures ahead, I'm reminded of the invaluable lesson taught by this time. Winter teaches us to save for a rainy, maybe, snowy day, where our resources on the ground would not make ends meet. We must save for these times to survive until the next "spring", or next time things are abundant.
The principles of FIRE go hand in hand with proper preparation for the winter months. Much like a person needs fire wood to heat their home, we also need to have financial reserves to get through desperate times. You never know when multiple problems in life will occur all at once, and we both know they will. When we save and invest through the avenues of FIRE, we will be the ones ready to survive and thrive in times of financial heartache for most.
The average American (57%) has less than $1,000 sitting in their savings account. That number is crazy! Perhaps, "back in the day" that was a lot of money, maybe it meant something, But with inflation eating away at 2-3% per year of our purchasing power, that money won't last long today. Please, if you have less than that in your savings account, stop right now and figure out a way to put more money away to protect you from life's occurrences. There are so many things we can do for money out there like; shovel sidewalks, work extra hours, find a second job if only for awhile to build your cash reserves. Hell, selling things you don't use is one of the best ways to earn extra money and free up some space, literally and figuratively in your head! Just go full Marie Kondo with your things. "Does it bring you joy?", NO?, then get rid of those damn things. Live light and embrace the minimalism.
“Do not save what is left after spending; instead spend what is left after saving.” ― Warren Buffett
By being on this path to FIRE we can weather most storms, way better than the average American. People say it's impossible to reach FIRE at a younger than traditional age, we know they are wrong. We also know it's wrong having less than $1,000 in your savings. This country, the U.S., is one of the richest in the world with exorbitant wealth everywhere you look, mostly bought on credit (yikes!). Living here gives us the ability to save some of that great wealth and invest it for a brighter future. Will it make you rich over night? No! That's not the point, this is more of a get rich slowly game with an eye for the long term. I'll link to a strategy I use to save half of my pay that I'll invest making even more money!
What's cool to me is not having the fanciest car, but having more and more money in the bank and my accounts that I see grow every month. This process starts slow, but once it's moving, it's like a locomotive that nothing can stop. It all starts with 1$. Yes, just 1$ that will then turn in to 2$, then 4$. You hopefully have read my last post on "How do I become financially independent", in this post I talk about the concept of exponential growth when our money grows faster and faster through the power of compounded interested, when invested in low cost index funds. See which index fund I chose!
With these posts I hope to inspire you and let you see that FIRE is 100% possible and easy to do through a repeatable process that most anyone can follow. It's a very rewarding journey that provides safety and security, as well as, freedom, liberty and the pursuit of happiness! Or you could go back and work at your job, until the best years of your life have past! I know what I'll choose.