Discussing finances in America is about as appealing as using a rotary tool to cut your over-thickened and rotted toenails. I’ve never done that and my toenails are blue ribbon winners, but it sounds unappealing.
We’ve struggled over the past few years with sharing this major shift in our lives and what it means for our futures. One of the primary reasons for starting this site was to provide a platform to more deeply explain our philosophy and financial strategy, because frankly nobody wants to talk about money.
The middle of October has been a wild ride for investors, with a drop of over 5% in the S&P 500 over two days, October 10th and 11th. Friday’s rally (October 12) offered a bit of a bounce-back, but much uncertainty remains regarding the near future of the United States economy. Our net worth took a hefty ding in just two days, so why bother with this stuff?
This week we’re going to step away from all that soft touchy-feely philosophical stuff and take a more technical look at investing and the psychology of betting your future on the stock market. Sound scary? It can be.
The first response we usually get (or sense) when explaining the concepts behind financial independence – and in particular frugality – are that we must be depriving ourselves of “the lives we deserve” by being in a higher income bracket yet choosing to spend so little money. Instead of waxing poetic about the philosophy of simple living, let’s start with some examples of what we consider low-hanging fruit in the hierarchy of unnecessary spending.
“I love eating out, so I’m happy regularly spending money in restaurants.”
Well…almost free anyway. But more on that in a moment.
Hot off the heels of our trip to Germany in June, I had no plans for any big international trips in 2019, in line with our general “Big Trip Every Other Year” family policy.
All that changed over the course of the last few days, when Mrs. CC caught wind of an incredible deal from Delta offering low-point fare to select European and UK cities, including Zurich, Frankfurt, and London.
First off, don’t get accustomed to this sort of posting frequency!
I wanted to quickly announce the release of the Playing with FIRE documentary trailer that was uploaded yesterday. Simply put, this project has the potential to take this movement to the mainstream.
This is Part 3 in the series. Check out Part 1 and Part 2 first!
Does this all sound intriguing but overwhelming? Perhaps you feel you haven’t set up your life to now embark on this journey. Let’s take a quick look at defining financial independence and a few first steps to get you on your way. Most important of all, let’s highlight the shockingly abbreviated timeframe for putting away serious amounts of money.
This is Part 2 in this series. Check out Part 1 here.
No matter your age (but especially if you are young), specific measures can be taken to drastically increase net worth. Generally speaking, in 10 years or less, you could be putting a traditional career in the rearview mirror, in a situation where your money now makes money for you. Your input is virtually no longer needed. The FIRE (Financial Independence/Retire Early) community pursuing this movement is loaded with brilliant minds who have gamed this system. All you have to do is make some simple — yet profound — decisions on how you structure your life. For us, these are the basics:
The binary solutions for work/life balance in climbing tend to be one of the following:
The Lifer
The lifer pursues climbing at all expense and makes ends meet as best as they can. The lifer participates in seasonal work or other flexible jobs that provide an income capable of sustaining life, but allowing for little to no saving for the long term. Individuals on this path are reluctant to place any roots: careers, property, family, long-term relationships. These individuals experience unparalleled freedom, but may harbor deep-seated concerns about their financial future after the youthful years.
The typical van scene in early spring outside St. George, UT. The climbers at these crags are often a nomadic bunch, and as such, they warm up on my projects.
The Optimizer
The optimizer pursues a career and climbs as much as they can in the margins. This is where most of us fall in modern climbing. We have careers, we may have children, perhaps even own a home. As life demands increase; careers develop, children enter the equation, climbing progressively gets shoved further towards the back burner.
These are the weekend warriors and the people who fill up the campgrounds on the holiday weekends. There is comfort in that this life is a shared experience with most others; almost anyone can relate. These individuals tend to have much healthier and stable incomes, but also tend to fall victim to lifestyle inflation: As income increases, so does unnecessary spending.
Despite vastly higher incomes, the optimizer’s financial future may be no less secure than the lifer, but they may have lots of nice stuff.
Two facets of my life that keep me fully engaged are rock climbing and personal finance. I’m guessing you’ve come to this site because you are more interested in one of these seemingly unrelated subjects than the other, but I’ll slowly, hopefully, make the case that there are valuable lessons to learn from my experiences in wading deep into either respective…pool?
