So I’ve long been interested in “The FIRE Movement” the whole Financial Independence Retiring Early thing. I noticed recently there’s a crypto fire community called r/CryptoCurrencyFire which I think is pretty neat.
I saw a post yesterday from a guy who was making $30 a day off in game rentals and was considering quitting his job, so I just wanted to share some insights from someone who’s into the whole FIRE thing and why that might be a bad idea. I should add this guy wasn’t from a 3rd World Country where $30 might be a months income, this was someone from California, one of the most expensive states in the world to live in.
FIRE stands for financial independence retiring early. The whole idea of FIRE is to try to up your income as much as possible, cut your expenses as much as possible while still maintaining a decent quality of life, live off 50% or less of your income, and save and invest the rest.
In typical FIRE discussions 750k is about the bare minimum anyone considers retiring on and that’s among the r/leanfire community or those who are willing to live a bit more simply and sacrafice a bit of spending for the freedom of time. There is a community called r/povertyfire where people plan to live on 12k a year or less, typically by moving to a lower cost of living area.
I guess my point is this, when your 20 yeas old and living with your parents making $30 a day may be a way to quit your job and have some beer money, but its not a real income and without being subsidized by your parents you really can’t live off that. Beyond that Defi platforms get rug pulled or hacked all the time, interest rates are good for a few weeks or months and then drop, it’s not super sustainable right now to live off APR.
Now it’s one thing if you got 1.2 million in crypto, maybe you buy a rental property that brings in some money each month, throw a bit into a high dividend ETF and throw a couple hundred thousand into staking some crypto, but if you have less than a half mill, and that’s being generous, and you plan on living off crypto that seems pretty risky.
I imagine many of you have already read it but I’d encourage you if you haven’t to read Tim Ferris’s The 4 Hour Workweek, it gives you an interesting and different way to look at life ie taking mini sabaticals or retirements for 6 months or a year every couple years throughout your working life so you can “enjoy retirement” while your still young, healthy and active. He also talks a lot about creating passive income streams and your own businesses. Its basically just an eye opener if you’ve grown up with the idea of getting a 9-5 working hard until 65 and then retiring, it’s a different lifestyle and a different way of looking at things.
I guess my point is this, to the guy making $30 a day or $60 a day you could either quit your job enjoy hanging out taking it easy and live off that money, or you could keep your job, use that money to continue to DCA, to continue to stack, especially now when things are down, and by having the patience to do that in a couple years you may be in a position to actually and sustainably quit your job and not go back to one.