What the FIRE Movement Gets Wrong about Money, Time, and Happiness
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What the FIRE Movement Gets Wrong about Money, Time, and Happiness
I thought I needed to be “Financially Independent” by 35, but what I really needed was to go to therapy.
That pretty well sums up my experience with Financial Independence, Retire Early (FIRE) movement. For those unfamiliar, here’s my one-sentence description of what the FIRE bloggers preach: “Spend as little money as humanly possible today, invest the rest and wait until you have 25 times your cost of living saved up, at which point you are “financially independent” and can choose to retire early.”
FIRE is a seductive proposition for two groups of people.
I was very firmly in the second group when I stumbled across the FIRE movement, I had unresolved financial trauma, and rather than dealing with those issues, I decided to work multiple side hustles on top of a full-time job, deny myself of spending money on anything deemed non-essential and become a super-saver.
How to Re-enter the Workforce After a Career Break
Anyone who has followed my writing for any significant amount of time knows how often I hit upon the point that?all wealth is built from income .
Most of my writing—and if we are honest, 99% of all personal finance writers—focuses on what to do with your income to build wealth and financial security. This is useful for those who make enough money to live a comfortable life. It’s less useful for those who barely make enough money to cover the bills.
You need to?have?money to be a good money manager.
A recent question in the Making of a Millionaire chat ?asked a crucial question.
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“In the long run, I’d love to see more advice geared towards low-income lifestyles.
I’d love to get advice about things like how to land an entry level job with no experience, how to re-enter the “skilled” workforce after a career gap, and stuff along those lines”
This is exactly what I want out of Substack’s new chat feature. I want to build financial resources that help you with your most pressing financial problems.
In today’s post, I review some research to begin to tackle the question, “how to re-enter the “skilled” workforce after a career gap?”
Fear of Losing Money Leads to Very Bad Decisions
“I hate to lose more than I like to win.”
-Larry Bird
Welcome to another installment in my ongoing series called “Money On My Mind,” where I publish articles to help you deal with the psychological aspects of managing money.?Check out past editions of the series here.
We continue our exploration of cognitive biases by looking at loss aversion.
Continue reading to learn:
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.