I’ve gotten more media calls in the last week than ever before in a similar period, and everyone is asking the same question: Is this the end of the FIRE movement? It’s not, but is IS a time for some self-reflection, and time to reject the more extreme, risk-embracing messages pushed by the fringes of the community.
The pandemic and recession will prove that the math is not “shockingly simple.” They will force those still saving to reassess their plans, make them more financially conservative and secure, and, I hope, shut down some of the fringe discussions pushing much “leaner,” riskier plans. The pandemic may, finally, be what we need to separate work and health insurance and get Americans universal coverage, which is good for everyone, but will help many folks retire more securely and earlier. UBI could even happen. All good for everyone, including early retirees. I do, however, I hope that this pandemic and recession are the end of things like: 👉Treating the 4% “rule” as gospel (3-3.5% is vastly safer)
👉Encouraging people to quit work before they hit their number
👉Encouraging 90-100% stock allocations
👉Downplaying cash’s importance
👉Downplaying the real risk of taking on more debt to earn rental income
👉The trend of people who have not achieved financial independence trying to get famous and rich by selling the concept
👉The selfishness inherent in how many talk about FIRE
If these early days of the pandemic and recession don’t prove to everyone that we’re all in this together, like it or not, then we’re truly being willfully ignorant. This is the moment for the community to start giving a shit about everyone, not just our own investment balances. 💜 #earlyretirement #firemovement #financialfreedom #financialindependence #financialindependenceretireearly #workoptional #retireearly
Social Distancing, BUT MAKE IT FASHION. 👩🎤 So we’re all staying home as much as we can when we’re not working (if you’re not, please start!), but that’s a perfect excuse to put on your most ridiculous costume, rock that makeup you wouldn’t wear out of the house, try cutting your own hair, experiment with DIY hair color, or whatever feels celebratory to you. Let’s keep spirits up when the world feels chaotic! 💪💜
This is definitely a time of increasing panic, so make your money one less thing to worry about, and just focus on saving as much cash as you are able to, preferably in a high-yield or high-interest savings account. We have no idea if we are anywhere near the bottom for the stock markets, so socking extra money into stock right now is trying to time the market, which every bit of research ever done shows is a losing strategy. My friend @shepicksuppennies put it perfectly: don’t try to catch a falling knife. It is looking increasingly likely that this is the beginning of a recession, and public health experts tell us that the pandemic will likely be with us for some time, so it’s time to think about long-term preparedness. That means having as much cash on hand to cover your expenses as possible, covering you if you lose your job, if you can’t sell shares for an extended period, etc. The last recession was not kind, and there’s no reason to think this one will be any more so. The more you can save now, the more peace of mind you will have as all these events unfold, and the more you’ll be able to focus on your own health and the health of those you care about, rather than freaking out about money. You got this. 👊
It’s #internationalwomensweek and almost #internationalwomensday. To celebrate, it’s a great time to look at your social media feeds, to see who you’re following, and how many perspectives you are exposing yourself to. It’s easier than ever to create our own echo chambers and bubbles, but making an effort to diversify the people and ideas you see can make a huge difference in changing your mindset and understanding how others live. More suggestions in my stories today, but here are some great follows to get you started: @dumpster.doggy @heyberna @bgrpiggy @bgrkitty @richandregular @herfirst100k @disabledgirlonfire @journeytolaunch @hownottotravellikeabasicbitch @alloptionsconsidered @fairercents. #representationmatters #iwd2020 #internationalwomensday2020 #iwd #spendlikeyougiveashit #adventuresinearlyretirement #ournextlife #workoptional #earlyretirement
