Soon I’m going to be interviewed about FIRE on a brand-new podcast. It’s called ‘Smarter than Before’ and the aim of it is that each guest will teach the host about a skill/career/something that isn’t usually talked about.
As we all know, financial skills aren’t normally talked about!
I want to make sure I cover everything I need to. It’ll be a 45 minute chat.
If you are following the FIRE path, what do you think I should include?
If you’re newish to this, what would you like to know more about?
I’d really appreciate any and all feedback.
I am following the FIRE path and five years ago, I wish I knew: hit the financial books everything you need to know is in the library. Investing isn’t as scary as you think. Start saving, even if its a dollar! Do. It.
I want to know more about: how to keep momentum when waiting 15 years for compounding to work.
Ok, resources and being a long-term thinker.
Got it! Thanks.
I think the math behind FIRE, and especially behind Coast FI would be particularly useful. I wish I’d been introduced to both in my 20s!
Maths is definitely far from being my first love, but I like the idea of explaining Coast FIRE.
1. Spend less than you earn (pay yourself first).
2. Invest the surplus
3. Avoid consumer debt.
4. Repeat and Compound.
Point 2 seems to be the most difficult part. An investment in one’s financial education is mandatory as per Budget Life List’s comment above. There are no financial literacy courses in schools so (a) there’s a lot of financial illiteracy out there and (b) we have to learn this stuff ourselves.
Also, I’m still amazed at how many people confuse Investing with Trading. The conversation goes something like this;
Them: “Oh Jeff, so you ‘dabble’ in the stock market?”
Me: “No. I’m a long-term investor. I buy funds that track an index and pay dividends which I then re-invest”.
Them: “I don’t understand that. I’ll stick to property.”
Me: “I can recommend some great books on investing”.
Them: “I don’t have the time to read”.
Anyway, that’s enough ranting from me. Good luck with the podcast Frogdancer!!
Great answer. Thanks very much for taking the time to respond with such detail. 🙂
Personally I’d like to hear someone talk about how late this journey could begin & how late is too late and if its possible for people on single or limited incomes
Well, if I’m talking then there’ll definitely be talk about this!
1) Resources. Websites, books, blogs. We really are on our own for financial education and just by starting small and being willing to learn puts you above the crowd in financial literacy. Being entertained just sweetens the process – thank you humorous bloggers.
2) Just begin. I was in my late 40’s when I started and I heard the question: “If you don’t succeed, will you be better off or worse off than if you never started?” The answer was that I’d be in a better position. I failed to meet my goal – by 2 months. Then I met it and my world changed dramatically for the better. Just begin, and you’ll be better for it!
I love this. Just begin.
I always like to hear about how people stay inspired during their FIRE journey, especially if they’re older – it can be tempting to compare yourself to 30-year-old retirees at any age. Staying motivated isn’t a hard financial skill, but it’s still a skill of some kind ?
I call this being a long-term thinker. Some people seem to be naturally gifted, but it’s definitely a mindset that can be learned.
I think understanding compounding interest is critical, at first it feels so slow to save or to make a dent in debt, but you reach a point where compounding just accelerates the growth of investments – it’s hanging in there long enough for that to happen. Also mindset – coming to believe it IS possible by finding like-minded people makes it easier to stay the course and increases knowledge. Eventually saving just becomes a habit.
So true. I’m wondering if the task I’ll get Will to do after we finish our talk will be to get him to look up a compound interest calculator and plug a few different figures into it.
I’m thinking that might be an interesting way to grab his attention.
I realise it is best to pay out your mortgage before retirement but we have carried a mortgage into retirement. We used the funds to buy our car and caravan for travelling in Australia over the next few years and will pay off a lump sum when we finish travelling. Our budget for our allocated pension withdrawals includes payments to the mortgage and we make extra payments as we can. With the mortgages of today much higher than in the past I think people should perhaps allow for this in the future.
That sounds well thought out.
Having a fully paid for home as I do, I’ve never thought about the best ways to handle a mortgage into retirement.
For people like me and my husband who discovered Fire late. We have always been careful with our money though, own our home, will have enough money in Super when we hit 60. It’s hard to know how much we need to invest to cover the 12 year gap until super
– Should we downsize ?
-Does the 4 percent rule apply?
-Save just enough and use it all buy 60?
Personally, I have 3 years until I can access my super without paying any tax.
I have 3 year’s expenses put aside. That’s not counting dividends, etc. That’s gravy. 🙂
I’m a bit older than you two, though.
You sound like you’ve hit Coast FI.