How To Retire Early without Financial Independence (FIRE Movement)

Can you retire early without financial independence? Yes… and no. While we haven’t hit FIRE, we are following a path called Slow FI.

What’s up guys nature here and today i want to talk to you about retiring early without financial independence that’s hitting fire but without by now you may be sitting there saying that’s ridiculous you cannot retire early without having the money to do so the math literally doesn’t work well i’m not saying i’d completely disagree with you here but i kind of am

See every day hannah and i wake up in this airstream parked wherever we want and have complete control over our schedule of where we go what we do and how we do it that kind of sounds like my dream retirement well stay tuned because i’m going to show you the four steps that we took to do this and how you can do it too okay so out of the gate here no we are not

Actually retired no we have not hit financial independence and yes we do still have to work in order to live i just needed to say all that before the internet retirement police come after me now before i jump into my process first let me explain the difference between what need typical pacify looks like versus what we’re doing have a fire movement started decades

Ago with folks like vicki robin the author of your money or your life and then it became goober popular as bloggers like early retirement extreme and mister money mustache started sharing their journeys and the movement has taken on a whole new stage of growth but the recent release of the documentary playing with fire now as the movement has picked up speed one

Of the common messages you’ll notice on the online forums and groups is this idea of phi faster people sharing and comparing their savings rates and almost wearing their years until phi as some sort of badge of honor the traditional path to phi often looks like this delay gratification and enjoyment through a combination of fur gala t and increasing your income

To increase your savings rate as much as possible and speed up the timeline for hitting phi then once you’re there you can quit the job you hate and have complete freedom to live and do as you please thus retiring early now there’s two problems with this and the first one is pretty obvious life is not very fun during that middle part of the journey now if you’ve

Got a job that you love and also makes tons of money then great you win but the reality is that for many of us the increasing our income portion goes hand-in-hand with a job that we despise zac over at four pillar freedom did an incredible job of breaking down and showing how savings rate impacts your years to phi even at a 50% savings rate it will still take you

16 and a half years to get there and if you’re in a situation like what i used to be in where you’re at a job that you can barely breathe at the idea of staying there that long is sickening the second not so obvious problem is that you need to find a way to enjoy your life as you go you’re not gonna magically have a life that you love the second that you hit phi

Rolling over from $1 way from financial independence to actually having financial independence doesn’t completely change your life you still have to find a sense of purpose and meaning and phil meant even if you’re able to retire early which is why i advocate for a different path now it wasn’t long after we found out about the fire movement that it became pretty

Clear that the traditional fire path was not going to work for us but there were so a lot that was really appealing about fire so we decided to ask a different question what if we didn’t want to retire what if we built a life that we didn’t want to retire from if we go back to the graph that we drew a second ago is there a line that looks more like this is there a

Way to pursue phi and increase our enjoyment along the way it seems obvious that we should try and balance our daily enjoyment of life with still prepping for the future and reaching towards phi but it’s not obvious at all when you’re stuck in this phi faster faster mentality and on top of that when you start following a path that’s now referred to as slow phi you

End up making decisions that are in direct opposition of that phi faster mentality like quitting your current job to do something else and taking a pay cut in the process or getting another dog with regular monthly expenses when you already have one dog and two cats both decisions that hanna and i have made and these decisions are counterproductive and helping us

Hit five faster but they greatly increase our enjoyment of life in the process luckily we’re not the only ones picking up on this jessica over at defiant ears recently wrote an article on slow phi and came up with the definition that i really liked she said slow phi is when someone utilizes the incremental financial freedom they gain along the journey to financial

Independence to live happier and healthier lives do better work and build strong relationships that is exactly what hannah and i are doing and what i think that you should consider all right now at this point i know what you’re thinking yeah yeah yeah i get it don’t point out pursuing phi enjoy the journey daily since something about a four step process earlier

Getting rid of all this fluffy stuff what is that give me give me the meat well i’m glad you asked step one is to identify why you want to hit financial independence in the first place like why are you watching this video right now what is it about financial independence that’s appealing to you and i don’t mean just freedom i mean to write down a big list brainstorm

As much as you can of all the values that five will bring you once you get there this list could include freedom to pursue your hobbies more time with your family traveling more than two weeks of vacation a year control over your day if and when you’ll work more time for volunteering less stress about money ability pursue work that you love with or without compensation

An opportunity to move and have geographical flexibility or maybe just general life flexibility but your list needs to look different than mine that’s the point this is wi-fi matters to you okay the second step here is to circle the top three to five values that matter the most to you use the pareto principle here which 20% of these values would bring you like

Eighty percent of the enjoyment which ones do you care about the most for us some of the most important ones are time with family general life flexibility the ability to move change directions without being tied down travel not being limited to vacation days from our boss and control over our work day and doing work that we strongly care about okay the third step

Is to reverse engineer how you can get some of these values without hitting five what can you do right now they can put you on this path to achieving most of these values and one two or three years without having to wait the full 16 years or more tip 5 we chose moving into an rv full-time and pursuing freelance work and that’s allowed us to get the vast majority

Of the benefits that we cared about much quicker than usual it’s allowed us to spend more time with family whenever we want travel whenever we want do work in a field that we care about on our own schedule and have general life flexibility in case we want to change our minds and it only took us a couple of years from the moment heard about the fire movement to

Actually building this life that we love and the good news is that there’s tons of ways to do this depending on the values that you want the most you don’t have to do it the way that we’ve done it you could be like my friend shawn marin from – frugal dudes who was able to take his job remote he likes his day job but he wanted to work remotely to give him and his

Family the ability to move wherever they like or you could be like angela from tread lightly retire early who down shifted to work part-time yes it decreased her income but it significantly improved her quality of life this could also mean focusing on your time outside of work to truly optimize it and make sure you’re squeezing as much out of it as possible this

Might mean downsizing your home so that it’s less i take care of which then would free you up to volunteer or spend more time pursuing the hobbies that you love i’m not sure what this looks like for you that depends on what it is that you want but i’m confident that if you really stretch your mind here you can start pursuing these things much sooner rather than

Later speaking of pursuing these things that brings us to step number four which is to eliminate everything that doesn’t help you achieve them this is where in the traditional fire path we start cutting expenses but it’s much easier now because we’ve clearly identified why we’re trying to hit fire in the first place the values that are the most important to us

And the direction that we’re going in so when it comes to downsizing your home or biking versus driving your car or going out to eat less you can simply look at the values that those purchases bring and stack them up against the values that you circled earlier and said were the most important to you and if these purchases and their values don’t support the ones that

Are the most important then cut your spending and take the money and use it to pursue phi or use it in a different way to help you get those values sooner now if you’ve been paying attention these steps sort of look like flower but if free doesn’t really make a whole lot of sense luckily hannah who is much more clever than i am was like well what if we just stick

A little m and a little ear ight there then we get i’m free which is ultimately what we care about anyways right it’s the financial freedom that phi brings us not financial independence in and of itself perhaps our journey of focusing on freedom rather than phi is best summed up in a tweet from zach from four-pillar freedom that blogger that i mentioned earlier he

Said overrated metric how fast you’re able to reach financial independence underrated metric how enjoyable your journey is along the way to financial independence so can you retire without hitting buy well technical retirement no you can’t you do have to have the money to retire but can you get like 80% of the benefits from retirement without achieving pi absolutely

And that’s what i want you to think about so that’s it guys if you liked this video please hit the like button and subscribe to this channel for more videos just like it as always remember i can teach you about financial independence but i can’t make you chase after it the choice is yours i’ll see you all next time

Transcribed from video
How To Retire Early without Financial Independence (FIRE Movement) By Nick True – MappedOutMoney