After I started to sail a lot more than I use to. I have started to read some books about sailing and voyaging.
Back when I was a kid, I thought that “One day I’m going to have a huge boat, because that is a lot nicer than a small boat.”
When I read about people who has been sailing for many years, I think the story is way more appealing if they have done it in a small boat.
They said to themselves:
Go Small. Go Far. Go Now.
Larry Pardey, Cruising in Seraffyn
I have heard several stories of people saving up for the big boat for their retirement. And then they suddenly die.
Go Go Go and FIRE
I interact with several people in the FIRE community. And there is not many people who goes small, far and now in that community.
The 4 % rule is so conservative if you ask me.
By saving up 25 times your annual spending we are:
- Going Big / Saving to much money or having to big of a budget
- Not going anywhere / not taking up mini retirements
- Waiting too long to “retire”
Going Big
There is three ways that we can attack our financial goals.
- Spending less
- Earn more
- How much we want to have saved
I’m the biggest fan of focusing on 1 & 3.
We can go pretty extreme and do as Jacob Lund Fisker.
But only spending 7.000 $/year and seem pretty extreme for many people.
But instead of focusing to much on hitting that magical number of having 25 times our annual spending (aka. the 4 % rule).
We could scale that down to something more “risky”. And take a mini retirement, and maybe work one day a week while we are having blast.
Not Going Anywhere
Even if we are responsible with our spending and saves 50 % of our salary. We are more likely to not go anywhere.
While we can’t travel to happiness it doesn’t make to much sense of staying at a job we hate in order to hit a certain number. By saying that our lives is going to be significant better when are able to “retire”, is the exact same things as believing that our new Iphone is going to make a great jump in our wellbeing.
It’s nice to have a lot of money, but you know, you don’t want to keep it around forever. I prefer buying things. Otherwise, it’s a little like saving sex for your old age.
Warren Buffett
Don’t get me wrong. Don’t go out and buy a lot of stupid stuff.
But I dream about sailing around the world. And I’m not going to wait till I finally can check of that “25 times my annual spending” tick box.
Waiting Too Long
If you start at age 22 to save and invest 50 % of your income, you are still going to be 35 or more years before you hit that 25 your annual spending mark.
If you are total happy about your current situation. Then just stay in the grind.
But if we dislike it. Then settle for less than 25 times your annual spending and find another job, start to study again or start a business.
Just try to ask yourself the following things.
- How can I go smaller?
- How can I go further?
- How can I go tomorrow?