Are You Dreaming Of Escaping Your 9-5 Career?

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When did you last want to walk into your boss's office, look your boss in the eye, say, "I quit," and then walk out with a smile?

This is precisely what a former colleague did.

I used to work with this brilliant high school science teacher.

Let's call her Lorie.

Lorie was a popular teacher and one of the best I had ever worked with.

One day, Lorie woke up like any other day.

She got ready for work.

She rode the subway to work.

She arrived at work and greeted her colleagues with a smile.

When her students arrived at her classroom for class, she greeted her students with an even bigger smile.

Lorie taught 3 or 4 science classes that day before lunch.

Then, shortly before lunch, she walked out of her classroom, walked into the principal's office, looked the principal dead in the eye, and said:

"I quit."

Then Lorie walked out of the school and never entered another classroom again.

Again, I ask:

When did you last want to walk into your boss's office, look your boss in the eye, say, "I quit," and then walk out with a smile?

During the past several years, I've had a few days when I wanted to do that.

Don't get me wrong, I have a decent career, earn a decent income, and have a ridiculous amount of paid time off.

But there are days when I no longer want to trade my time for money.

My time on this planet, as is yours, is pathetically short.

The last thing I want to do when it's a beautiful day outside is sit in an office.

The only thing stopping me from quitting is my current financial situation.

It's far from bad, but it can certainly be better.

I wish I had been aware of the FIRE movement 30 years ago.

FIRE is the acronym for Financial Independence Retire Early.

The idea behind FIRE is to save as much as possible as early as possible so you no longer have to trade your time for money and can live the life you actually want to live.

I'm not a diehard adherent to the movement; however, in layperson's terms, the idea behind FIRE is sound:

You save and invest ~50-70% of your income to earn an estimated ~7% annual interest until you hit your FIRE number.

When you decide to quit or Retire Early, you withdraw ~4% per year from your savings and investments for living expenses.

You can then live off of this money forever.

That's the idea.

There are many variables in the equation and different strategies and flavors of FIRE, but you get the drift.

The key is determining your FIRE number.

So, how do you determine your FIRE number?

Simply put, determine your annual essential expenses and multiply that number by 25.

For example, while I live in one of the most expensive cities in the world, my current annual essential expenses come out to ~$25,000 per year.

I know this because I've been tracking every dollar I've spent daily since January 2021.

That number includes everything: rent, car payments, groceries, utilities, student loans, etc.

The absolute essentials.

My annual essential expenses multiplied by 25 brings my FIRE number to $625,000 (to have a safer number, multiply by 30: $750,000).

Suppose I have this amount of money invested, earning an estimated 7% per year, and I withdraw only 4% per year to live on.

In that case, I can live off this money forever while the principal amount (my FIRE number) grows.

Here are the numbers:

FIRE number: $625,000/$750,000

Money earned at an estimated 7% interest/year: $43,750/$52,500

Withdraw 4%/year: $25,000/$30,000

The difference ($18,750/$22,500) and the principal amount ($625,000/$750,00) would continue to grow through compound interest.

Again, the equation has many variables, such as market fluctuations etc., to consider.

And, while I'm not an adherent, I believe in the numbers and a reasonable rate of return.

Is it realistic to believe I'll have $750,000 in liquid assets by 2028 (the year I do plan to quit, well retire)?

Most likely not.

I doubt I'll get to $625,000 (but I assure you, I will try).

What I do have on my side is that while I live in one of the most expensive cities in the world, my annual essential expenses are not crippling.

These essential expenses will likely decrease (or, worst case, stay the same).

When I buy a home, I'll ensure the monthly mortgage payment is close to the same as what I'm paying now in rent.

In 2028, I'll no longer have a car payment or a student loan.

That's about an extra ~$600 per month in my pocket.

The coup de grâce is: whether I achieve my FIRE number or not, in 2028 I will be eligible to retire with a pension.

Monthly income for the rest of my life.

It won't be much, but I'll no longer have to trade my time for money sitting in an office on beautiful days.

And, as a gambling man, I'm willing to bet good money that you'd love to spend beautiful days outside of an office pursuing your passions rather than sitting within.

No one on their deathbed ever said, "I wish I spent more time in the office."

I assure you, there will come a day in your professional career when you wish you were more like Lorie.

Maybe not.

At least, I hope not.

But why take the chance?

There's more to life than trading your time for money.

What's the point of all this?

The point of all this is to say:

Save and invest as much as you can as early as you can.

And once you start, stay consistent.

Your future self will thank you.

What caught my attention:

“To the extent that we can use money to gain independence and autonomy, that is, I think, as close as it comes to a universal want and thing that we can use money for.” —Morgan Housel

You can find the collection of financial tools & resources that helped me grow from a 6-figure debt to a 6-figure net worth by clicking here.

Thanks for reading!

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