Selfish, Lazy, Entitled!
The Millennial generation has been called a lot of things, but as someone who has been teaching students between the ages of 17-22 for years, I believe they are going to change the world.
They’re independent thinkers and idealists, they look at this out-dated society and they don’t agree with what they see. Despite people thinking they are apathetic, in recent times we have millennials marching against the powerful Gun Lobby, and leading the Occupy Wall Street movement in America.
Millennials have been particularly hit hard by events like the GFC and the changing face and insecurity of our job markets.
With a new generation, enter a new lifestyle movement: FIRE - Financial Independence, Retire Early.
With this new movement, millennials are finding their own answers to old problems of how to manage time and money. But with a twist.
It boils down to freedom. We all want it. But most of us are resigned to working in a job for most of our lives to get it.
People in the FIRE movement are turning this problem on its head by working out how they can retire much younger. Their big questions are:
· How much money do I need to save to retire in my 30’s?
· What kind of positive impact would I have on my family and friends if I didn’t have to go to a job every day?
The questions are not new it’s how they are answering them that is special.
So how are they doing this?
Slash Your Spending
The FIRE group pride themselves on frugality. They are known for extreme money saving measures, reducing their spending, and controlling their consumer impulses.
They meticulously work out how to only spend their money on the absolute bare essentials. They save their money fanatically.
They might live with their parents, or rent the cheapest place they can find, take public transport instead of buying a car, live in a small town rather than a big city, they eat at home and they don’t travel.
They are working hard at several jobs and they are saving saving saving. I’m talking about saving 70% of their income as the bench mark!!
‘FIRE-followers’ live by the mantra of spending significantly less money than they earn. They believe that “the less you spend, the less investments you need to support that spending, and the faster you’ll become financially independent.”
Living frugally is one thing, but do the FIRE people have any tips on how they invest their money?
One of the biggest advantages on their side is compound interest – putting away cash at the beginning of your life and using compounded interest over time will grow wealth extremely effectively.
They are also interested in developing multiple streams of passive income. Relying on rental income and online business opportunities like affiliate marketing.
Check out Scott Rieckens’ documentary ‘Playing with Fire’ on his family’s journey in achieving this mammoth feat.
There are a number of young people on the internet blogging about their experiences, who have achieved ‘FIRE’. They are single, they have families, homes (small ones!), living frugally, and importantly spending their time doing the things they want to do.
Is FIRE For You? - Hello, Reality Check!
It all comes down to what you are willing to sacrifice in your life now, to reach your goals of retiring early.
Do you want to live in a small town, small house, perhaps away from your extended family and your current friends? – your choices might be limited. Do you want to travel??
Living on an annual income of $25,000 for the rest of your life (a common FIRE community benchmark), is not for everyone, you would need to sacrifice a whole lot of what you are doing right now.
I know when I was in my 20's saving money was not really an option, I wanted to move forward, to go out into the world and achieve things. Do new courses, make recordings (I am a musician), travel. It always took money to do these things and I was always frustrated that I didn't have that money.
I had most of the things I needed, like a car and I lived in a great shared house in inner city Melbourne. I got by, and I was having fun, but I couldn't build anything bigger than this, and I couldn't really help anyone else out either.
And what about the pressure your family and friends put on you, ok, you're having fun now, but what about your future? How are you going to buy a house, or have enough money to have a family?
As much as I could say, hey, I've got my dream job as a musician, and I'm doing some gigs and doing some teaching and that is paying the bills, in reality, I was just scraping by. What if I wanted to really impress that girl I wanted to date and take her to a nice restaurant? Nup, didn't have that kind of cash. Or go on a really sick holiday somewhere overseas. Nup didn't have that kind of money either.
Sitting down and saving 70% of my wage to achieve something that looked like financial freedom would have seriously impacted my mojo. How could I go out? Go and meet people and network? How could I wear even half decent clothes to look good and feel good about myself?
Turbo Charge Your Arrival at FIRE!
Do you want to get to FIRE earlier and be a part of a great community without having to save 70% of your wage? Come and meet my mentors Stuart and Jay, they have over a decade of experience doing businss on the internet, they are helping me build an online marteting business with a proven track record.
Watch the FREE video introduction and check what they have to say, and make up your own mind, it is powerful stuff and it works.
Let me know what you think in the comments below and please sign up on my mailing list if you want to be the first to know about my next blog.