How to be wealthy - Part 1 (Introduction)

One of the more prominent movements to be wealthy is FIRE which stands from Financial Independence Retire Early. While we have heard news that some did manage to retire early, there are also some who were not able to find fulfillment after "retirement". Many went back to work.

So, while the FIRE debate is still ongoing, perhaps we can take a more pragmatic approach - we do NOT quit our job once we achieve this, but earn enough that we do not rely wholly on our 8:30am to 5:30pm (plus OT if required) job to support our lifestyle. Then we can put in the time and energy into pursuing our other passions or hobbies.

The basic principles of FIRE are:

Saving aggressively
Investing in low-cost Index Funds
Reducing Expense
Increasing Income Streams

The original goal of FIRE is to “retire” at 35-40 years of age versus the conventional retirement age is ~65. That said, it is best suited for high income earners ($10K or higher per month) with little or no financial obligation – that means no school debt, no family debt, no housing debt, no aging parents, no previous “investing mistakes”, no kids.

I will say that this did not apply to many as we all have at least 1 or even all of the above. Having said that, the principles of FIRE is an excellent example to “shoot for the stars, but if you miss, you will still reach the moon”.

Continue to Part 2

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Paving the Wei

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