Posts

-
Image
  Escape from the Rat Race.   What exactly means the term “Rat Race”? …and what is  Financial Independence ? We need to deepen the meaning of these two concepts. A rat race is an endless, self-defeating, pointless pursuit. The phrase equates humans to rats attempting to earn a reward such as cheese, in vain. Today the Rat Race is basically our competitive struggle to work and get ahead financially, to buy stuff we don’t use, to impress people we don’t like. Citizens are rats in a maze, expending their life energy running pointlessly, achieving nothing meaningful. For many people work is an endless pursuit of an impossible happiness with little reward or purpose. For many of these, the reward is the “right to buy stuff”. The price of this “right” is an absurd cyclical commute between home and work, which steals your time and your life, and which makes you feel like a mouse running in a circle or in a hamster wheel. Do you have a job and a decent income, but you’re sti...
Post a Comment
Read more
-
  F I R E Financial Independence Retire Early.  What is it? Financial Independence. Why is it so important? Financial Independence means liberation from  Wage slavery ,  a situation in which a person’s livelihood depends on wages or a salary, especially when the dependence is total and immediate. In other words, it is a condition that you reach when you have enough money and investments to afford the kind of life you want for yourself and your families. To reach this condition you must have a constant increase of your savings and investments that allow you to retire if and when you want, or do a job you really desire to do. When you reach Financial freedom you can stop working to make money, because your money is working hard for you. When your money makes even more money, you are on the highway to financial freedom! Reaching F I R E is a matter of  Shockingly Simple Math . To reach Financial Freedom you have to reach a number: this number is your passport to Fr...
Post a Comment
Read more

FU Money. Why it is so important.

-
Image
    What Is FU Money? If you want to be really free you need to understand the concept of “F*ck you money”. In our days we are all, more or less consciously,  slaves  to someone else. Each of us, from our childhood, is forced into a hierarchy where we have to ask the people above us for permission to get what we want. When we were kids they were our parents, then it was the teachers, college admission officers, professors, our company’s staff manager, our bosses. A life defined by the people who have power over us is extremely demeaning and frustrating: it can create great repressed anger, strong resentment, and deep disappointment. This leads to the “F*ck You fantasy”. In this fantasy, you imagine yourself saying aloud to your boss he’s an *sshole, to your hated colleagues to go to hell… then you go out the door, having the wonderful feeling that your person belongs only and entirely to you for the first time in your life. Virtually everyone has had this fantasy at ...
Post a Comment
Read more
-
Image
  The 4% Rule for retirement. The F I R E Movement. If you want to be financially free, you must understand the importance of the FIRE movement. FIRE  stands for “Financial Independence, Retire Early”. The FIRE movement is a lifestyle community with the goal of gaining  financial independence  and retiring early. Upon reaching financial independence, paid work becomes optional, allowing for retirement from traditional work decades earlier than the standard retirement age. The goal is to save and aggressively invest roughly 50 to 75 percent of your income so you can retire at 30 or 40. That’s right: You need to save at least half your income. ​What is the 4% Rule for the FIRE movement? The 4% rule is one of the pillars of the FIRE movement. If you want to achieve FIRE you must know the Four Percent Rule.. The “Four Percent Rule” is simply a rule of thumb. It is an informal piece of practical advice used to determine how much you, as a retiree, can withdraw from your r...
Post a Comment
Read more

A simple financial advice: Be An Owner.

-
Image
  A simple financial advice: Be An Owner. Do you want to give a little but great financial planning advice to your kids? Do you want to teach them a simple way to escape the  Rat Race , be free, happy, and successful in their life? Be simple. Be effective.   Let’s repeat to them: “Don’t be a consumer. Be an owner .” This easy and powerful concept embraces almost everything I know and everything I have ever read about the  FIRE movement ,  Financial Freedom ,  Wealth-building , and  Financial Independence . If you want to reach financial freedom,  you must  own  various   assets that produce income. Examples of these include: Stocks; Bonds; REITs; Real Estate and Rental Properties; Websites; Royalties; Digital Assets and Digital Products. You can either buy (stocks, bonds, Rental Properties, REITs) or build these assets ( websites, digital products),  but your primary objective must be to own things that make money when you are ...
Post a Comment
Read more
-
Image
  Why you can’t beat the Market If you want to reach  financial independence  you have to invest your money. If you want to invest, you must learn how it’s  hard to beat the Market. Before you invest in the Stock Market, you must know that you have two basic choices: Active Investing or Passive Investing. Active investing involves for you to choose, buy and sell single stocks, trying to beat the market and outperform its average return. Or, if you think you can’t personally do it, you can decide to pay a fund manager to actively invest your hard-earned money for you. If you choose Passive investing, instead, you simply buy an index fund ETF that contains all the stocks in that index and hold it for a very long time, expecting the average return of the market. Yes, I know: passive investing is really boring. Active investing is way more exciting and it may sound like a really great idea.  “  Hey man,  why  I have to  buy an index fund when I c...
Post a Comment
Read more
-
  What is Lean FIRE? Lean Fire: The first step to financial freedom. What exactly means Financial Freedom? What is FIRE? FIRE literally means “ Financial Independence Retire Early” . It is one of the most famous terms in the personal finance community. People in the FIRE community pursue  Financial Freedom  and usually adopt the  4% Rule  to know if they are financially independent. Following this rule, you know that if you accumulate in your portfolio an amount equal to 25 times your annual expenses, you are financially free. From this moment you can withdraw 4% of your portfolio each year for your living expenses and no longer need a job. Lean Fire is a specific type of FIRE. Lean FIRE: A Minimalist Approach to reach Financial Freedom . A famous type of FIRE is the “Lean FIRE” . This is essentially a low annual spending FIRE. If you read the  Lean FIRE Subreddit community  on Reddit, you know that it refers to annual spending lower than $40,000, usin...
Post a Comment
Read more