1
00:00:00,080 --> 00:00:02,600
Speaker 1: The Fire Movement, what it is, and how to be

2
00:00:02,640 --> 00:00:07,680
Speaker 1: a part of this very powerful financial movement, A biginners guide.

3
00:00:07,920 --> 00:00:11,559
Speaker 1: Welcome back everyone to Sugar Mama's Fireplay. So today we're

4
00:00:11,600 --> 00:00:14,400
Speaker 1: talking about one of my favorite topics when it comes

5
00:00:14,400 --> 00:00:18,000
Speaker 1: to personal finance, and that is the Fire Movement. If

6
00:00:18,000 --> 00:00:21,959
Speaker 1: you've ever dreamt of having financial independence, retiring early, and

7
00:00:22,040 --> 00:00:25,360
Speaker 1: having freedom over your time, this is the perfect episode

8
00:00:25,360 --> 00:00:28,600
Speaker 1: for you. But before you get too excited, let me

9
00:00:28,680 --> 00:00:32,280
Speaker 1: be clear. Fire is not a get rich quick scheme.

10
00:00:32,920 --> 00:00:37,720
Speaker 1: It requires patience, discipline, and a really strong commitment to

11
00:00:37,800 --> 00:00:42,440
Speaker 1: a long term financial strategy. So in today's episode, I'm

12
00:00:42,479 --> 00:00:44,879
Speaker 1: going to break down exactly what the Fire movement is

13
00:00:44,920 --> 00:00:47,680
Speaker 1: all about, the benefits, the challenges that come with it,

14
00:00:47,960 --> 00:00:50,559
Speaker 1: and most importantly, give you a step by step guide

15
00:00:50,600 --> 00:00:52,960
Speaker 1: to follow so you can see for yourself how you

16
00:00:52,960 --> 00:00:57,360
Speaker 1: can start working on your own financial independence. So relax,

17
00:00:57,600 --> 00:01:02,080
Speaker 1: sit back, and let's talk about this very powerful, exciting

18
00:01:02,280 --> 00:01:08,839
Speaker 1: movement that's changing people's lives forever. All right, First of all,

19
00:01:08,959 --> 00:01:11,160
Speaker 1: let's kick off and just explain the basics the one

20
00:01:11,160 --> 00:01:15,320
Speaker 1: io one of what Fire really is. So Fire stands

21
00:01:15,319 --> 00:01:19,520
Speaker 1: for financial independence, retire really and the core principle behind

22
00:01:19,520 --> 00:01:23,959
Speaker 1: it is very simple. It's about saving and investing aggressively now,

23
00:01:24,080 --> 00:01:26,920
Speaker 1: earlier in life, so that you can build enough wealth,

24
00:01:27,560 --> 00:01:30,119
Speaker 1: a great fat nest egg, to be able to quit

25
00:01:30,160 --> 00:01:32,399
Speaker 1: your nine to five job and just live a life

26
00:01:32,400 --> 00:01:36,840
Speaker 1: on your own terms. Now, traditionally, we most of us,

27
00:01:36,920 --> 00:01:38,959
Speaker 1: have been told, and we've witnessed through our parents and

28
00:01:39,000 --> 00:01:42,240
Speaker 1: perhaps our grandparents and great grandparents, that we work until

29
00:01:42,280 --> 00:01:45,880
Speaker 1: we are sixty five in some cases seventy, and then

30
00:01:46,040 --> 00:01:49,960
Speaker 1: when we retire, we live off our savings or superannuation,

31
00:01:50,400 --> 00:01:54,880
Speaker 1: or sometimes a government pension. So the Fire movement completely

32
00:01:55,280 --> 00:01:58,720
Speaker 1: challenges this, It turns it upside down, and it's about

33
00:01:58,920 --> 00:02:02,040
Speaker 1: encouraging people to take control of their financial future far

34
00:02:02,320 --> 00:02:05,440
Speaker 1: earlier in life, and actually, you know, not have to

35
00:02:05,440 --> 00:02:07,680
Speaker 1: wait until you're in your sixties or seventies to actually

36
00:02:07,760 --> 00:02:11,000
Speaker 1: enjoy the fruits of your hard work. Work hard now,

37
00:02:11,160 --> 00:02:14,720
Speaker 1: go aggressively, and then retire early and actually be able

38
00:02:14,800 --> 00:02:17,000
Speaker 1: to be young and fit and full of energy to

39
00:02:17,160 --> 00:02:19,880
Speaker 1: enjoy all the fruits of that hard work, not delaying

40
00:02:20,000 --> 00:02:23,840
Speaker 1: until later in life. Now, Fire isn't a one size

41
00:02:23,840 --> 00:02:25,880
Speaker 1: fits all, which I think a lot of people assume

42
00:02:25,880 --> 00:02:28,560
Speaker 1: when they first hear about it. There are different types

43
00:02:28,600 --> 00:02:31,639
Speaker 1: of fire, which I'll explain in a moment, but some

44
00:02:31,680 --> 00:02:35,639
Speaker 1: people really aim to retire extremely early. I've seen situations

45
00:02:35,639 --> 00:02:37,720
Speaker 1: whe people that have retired in their thirties or forties,

46
00:02:37,760 --> 00:02:41,320
Speaker 1: whilst others actually want to reach financial dependence so they

47
00:02:41,360 --> 00:02:45,040
Speaker 1: can have I guess a greater flow or balance, like

48
00:02:45,160 --> 00:02:48,520
Speaker 1: work less, take more holidays, or have like a passion

49
00:02:48,520 --> 00:02:51,800
Speaker 1: project on the side without having to have that financial

50
00:02:51,880 --> 00:02:56,480
Speaker 1: stress linger. So that's essentially what the fire movement is.

51
00:02:56,520 --> 00:03:01,480
Speaker 1: It is about financial independence earlier in life. Now, why

52
00:03:01,520 --> 00:03:04,480
Speaker 1: would you want to do this? Well, okay, there are

53
00:03:04,520 --> 00:03:07,400
Speaker 1: a few reasons why someone want to pursue the fire movement,

54
00:03:07,560 --> 00:03:10,520
Speaker 1: but here are just a few. The first one, obviously

55
00:03:10,560 --> 00:03:14,760
Speaker 1: is freedom over your time. You no longer work by force,

56
00:03:15,080 --> 00:03:19,480
Speaker 1: you work by choice. You have enough income to pay

57
00:03:19,480 --> 00:03:22,760
Speaker 1: the bills, You can decide how you want to spend

58
00:03:22,840 --> 00:03:24,880
Speaker 1: your time, whether you want to go to work today

59
00:03:24,919 --> 00:03:27,440
Speaker 1: or whether you want to maybe go on holiday tomorrow.

60
00:03:27,919 --> 00:03:31,440
Speaker 1: So it really brings back that choice and that freedom

61
00:03:31,560 --> 00:03:35,000
Speaker 1: and that time and even a luxury back to the

62
00:03:35,040 --> 00:03:38,120
Speaker 1: person who's controlling their fire. The second benefit to fire

63
00:03:38,200 --> 00:03:42,000
Speaker 1: is obviously less stress about money. Financial independence means having

64
00:03:42,080 --> 00:03:44,800
Speaker 1: enough money to cover your lifestyle without actually having to

65
00:03:44,840 --> 00:03:47,560
Speaker 1: rely on earning a paycheck from somewhere else or by

66
00:03:47,560 --> 00:03:51,960
Speaker 1: physically doing something. It's really about building passive income. Passive

67
00:03:51,960 --> 00:03:54,920
Speaker 1: income is money that you earn whilst you sleep at night,

68
00:03:55,560 --> 00:03:59,640
Speaker 1: so you completely eradicate that sort of pressure and stress

69
00:03:59,680 --> 00:04:01,440
Speaker 1: to have to go to a job every day and

70
00:04:01,560 --> 00:04:03,800
Speaker 1: show up and put a suit on, or stare at

71
00:04:03,800 --> 00:04:06,280
Speaker 1: a computer screen, or work with people that you don't

72
00:04:06,320 --> 00:04:09,040
Speaker 1: necessarily like. The other thing is it gives you more

73
00:04:09,080 --> 00:04:12,120
Speaker 1: opportunities for personal growth. When you're not tied up to

74
00:04:12,160 --> 00:04:15,000
Speaker 1: a full time job, you have obviously more time to

75
00:04:15,080 --> 00:04:19,799
Speaker 1: explore those passions, those hobbies, travel, even start a business

76
00:04:19,800 --> 00:04:22,680
Speaker 1: on the side. You have this choice with fire and

77
00:04:22,720 --> 00:04:26,960
Speaker 1: then of course allows better work life balance. You may

78
00:04:27,000 --> 00:04:30,960
Speaker 1: not necessarily want to completely retire and up shop, but

79
00:04:31,000 --> 00:04:33,800
Speaker 1: instead you might want to maybe look at part time work,

80
00:04:33,960 --> 00:04:36,480
Speaker 1: or look at doing some passion projects or even doing

81
00:04:36,560 --> 00:04:40,800
Speaker 1: some volunteers. So it doesn't necessarily mean you completely quit

82
00:04:40,920 --> 00:04:43,520
Speaker 1: the workforce, unless of course you want to. But you

83
00:04:43,640 --> 00:04:45,960
Speaker 1: just have a complete flexibility. You might decide, okay, well

84
00:04:45,960 --> 00:04:47,919
Speaker 1: I'm going to take a six month contract job, but

85
00:04:47,960 --> 00:04:49,760
Speaker 1: then for the remainder of the six months of the year,

86
00:04:49,760 --> 00:04:52,680
Speaker 1: I'm going to actually switch off, relax, do some courses,

87
00:04:52,800 --> 00:04:55,680
Speaker 1: do some charity work, and of course travel so you

88
00:04:55,720 --> 00:04:57,920
Speaker 1: have a greater sense of work life balance, and of

89
00:04:58,000 --> 00:05:01,280
Speaker 1: course that closing improving your own health and fitness along

90
00:05:01,320 --> 00:05:03,640
Speaker 1: the way. So now that we've spoken about the benefits

91
00:05:03,640 --> 00:05:06,160
Speaker 1: of firelet it's actually talk about the negative side, the

92
00:05:06,279 --> 00:05:10,680
Speaker 1: challenges of fire. Because there are challenges of fire. There

93
00:05:10,720 --> 00:05:12,320
Speaker 1: is a reason why not everyone is part of the

94
00:05:12,360 --> 00:05:14,440
Speaker 1: fire movement, and I'd say these are the key reasons

95
00:05:14,480 --> 00:05:17,960
Speaker 1: why people get stuck or don't commit long term to

96
00:05:18,000 --> 00:05:22,160
Speaker 1: see the results and all the beautiful benefits. So all right,

97
00:05:22,560 --> 00:05:27,360
Speaker 1: the fire lifestyle is not really for everyone. It requires

98
00:05:27,520 --> 00:05:33,280
Speaker 1: extreme discipline and patience. You have to be incredibly intentional

99
00:05:33,320 --> 00:05:38,919
Speaker 1: about saving and also saving and investing, and for most

100
00:05:38,960 --> 00:05:42,960
Speaker 1: people like myself as well, that includes cutting back, cutting

101
00:05:42,960 --> 00:05:46,679
Speaker 1: back obviously on luxuries, but also cutting back on things

102
00:05:46,720 --> 00:05:49,800
Speaker 1: that are sort of in between needs and wants. You've

103
00:05:49,800 --> 00:05:53,040
Speaker 1: also got to be incredibly patient. The more financial freedom

104
00:05:53,080 --> 00:05:56,080
Speaker 1: you want, the more passive income you want, the more

105
00:05:56,120 --> 00:05:58,919
Speaker 1: time it's going to potentially take all the biggest sacrifices

106
00:05:58,960 --> 00:06:01,000
Speaker 1: that are needed. So you need to understand that and

107
00:06:01,040 --> 00:06:03,240
Speaker 1: make peace with that and accept that if that's what

108
00:06:03,279 --> 00:06:04,560
Speaker 1: you want, you've got to build it. If it was

109
00:06:04,600 --> 00:06:07,279
Speaker 1: that easy, everyone to be doing it. The other downside

110
00:06:07,320 --> 00:06:10,760
Speaker 1: of the fire movement is the potential for burnout. And

111
00:06:10,800 --> 00:06:13,039
Speaker 1: this is something again i've actually seen a lot of.

112
00:06:13,720 --> 00:06:16,520
Speaker 1: So you know, initially people are full of motivation, which

113
00:06:16,560 --> 00:06:20,680
Speaker 1: is fantastic, but three months in a year in some

114
00:06:20,720 --> 00:06:23,599
Speaker 1: people have had to go to such extreme lengths, you know,

115
00:06:23,680 --> 00:06:26,280
Speaker 1: juggling multiple jobs and saving you know, up to say,

116
00:06:26,320 --> 00:06:30,000
Speaker 1: seventy percent of their income. This ends up being exhausting

117
00:06:30,400 --> 00:06:33,320
Speaker 1: and when you're going at this aggressive pace, it is

118
00:06:33,600 --> 00:06:37,320
Speaker 1: not sustainable. And the problem is when we're burnt out,

119
00:06:38,279 --> 00:06:40,960
Speaker 1: a couple of things tend to flare up. We then

120
00:06:41,040 --> 00:06:44,360
Speaker 1: have a blowout where we undo all our hard work.

121
00:06:44,800 --> 00:06:46,680
Speaker 1: You see that often with people who've been trying to

122
00:06:46,680 --> 00:06:49,360
Speaker 1: pay off debt aggressively and then they just something happens

123
00:06:49,360 --> 00:06:50,600
Speaker 1: and they get a trigger and then they go and

124
00:06:50,640 --> 00:06:52,880
Speaker 1: blow it all on new credit card debt, and you know,

125
00:06:52,920 --> 00:06:56,159
Speaker 1: they're back to almost square one again. It's exactly the

126
00:06:56,160 --> 00:06:58,400
Speaker 1: same with any strict diet where you've got to cut

127
00:06:58,400 --> 00:07:01,159
Speaker 1: out huge amounts of your normal every day diet. You

128
00:07:01,240 --> 00:07:03,000
Speaker 1: do it for a week or two, maybe three, and

129
00:07:03,000 --> 00:07:06,560
Speaker 1: then you just something happens and you know, you overindulge

130
00:07:06,560 --> 00:07:08,880
Speaker 1: in all of those things that you try to cut out.

131
00:07:08,920 --> 00:07:11,840
Speaker 1: So you've got to be very careful of having a

132
00:07:11,880 --> 00:07:13,960
Speaker 1: finger on the pulse with burnout. And I'll come and

133
00:07:14,000 --> 00:07:18,680
Speaker 1: talk about that in a second. The other downside of fire,

134
00:07:19,040 --> 00:07:21,200
Speaker 1: and this is a really big one that no one

135
00:07:21,480 --> 00:07:25,320
Speaker 1: talks about enough, and that is inflation and market risk.

136
00:07:26,040 --> 00:07:29,680
Speaker 1: So the thing with the fire community, it's not based

137
00:07:29,720 --> 00:07:35,120
Speaker 1: on necessarily just savings, no cash accounts. If you want

138
00:07:35,280 --> 00:07:39,240
Speaker 1: long term financial freedom, you've got to be investing. And

139
00:07:39,440 --> 00:07:42,960
Speaker 1: typically for a long term financial freedom independence has got

140
00:07:43,000 --> 00:07:45,440
Speaker 1: to have a certain amount of risk involved, which typically

141
00:07:45,440 --> 00:07:50,320
Speaker 1: falls into the the property market and equities. So the

142
00:07:50,320 --> 00:07:54,000
Speaker 1: investment portfolio you're building and creating that passive income has

143
00:07:54,040 --> 00:07:57,200
Speaker 1: got to last for decades. And if you're dealing with

144
00:07:57,240 --> 00:07:59,840
Speaker 1: these types of assets like for example, shares and property,

145
00:08:00,320 --> 00:08:03,440
Speaker 1: these are assets such are naturally and it's very normal

146
00:08:03,760 --> 00:08:07,880
Speaker 1: to be very volatile. They have downturns, and those downturns

147
00:08:07,960 --> 00:08:13,360
Speaker 1: can be dramatic and can really create an emotional reaction

148
00:08:13,440 --> 00:08:15,320
Speaker 1: in a negative way that then triggers a knee jerk

149
00:08:15,360 --> 00:08:17,960
Speaker 1: reaction that often comes with a regret. So you need

150
00:08:18,040 --> 00:08:22,840
Speaker 1: to understand what the risk versus reward equation is, where

151
00:08:22,840 --> 00:08:25,480
Speaker 1: it fits with you, where your risk profile is, and

152
00:08:25,520 --> 00:08:29,000
Speaker 1: you invest accordingly, and you're also ready to weather the

153
00:08:29,000 --> 00:08:33,280
Speaker 1: storm when those market downturns hit. The other important element

154
00:08:33,320 --> 00:08:37,400
Speaker 1: of this is the rising costs. So this is where

155
00:08:37,440 --> 00:08:39,560
Speaker 1: a lot of people who've thought they set themselves up

156
00:08:39,600 --> 00:08:42,880
Speaker 1: for a lifetime of fire actually sadly and unfortunately, and

157
00:08:42,920 --> 00:08:46,640
Speaker 1: I don't say this to patronize them, but they've basically

158
00:08:46,679 --> 00:08:49,800
Speaker 1: had to go back to work because the rising cost

159
00:08:49,840 --> 00:08:53,319
Speaker 1: of living and the recent impact of inflation has really

160
00:08:53,400 --> 00:08:57,640
Speaker 1: eroded into their strategy. Now this doesn't mean it's completely

161
00:08:58,000 --> 00:09:00,959
Speaker 1: you know, you can't avoid this from it. You need

162
00:09:00,960 --> 00:09:04,960
Speaker 1: to understand the impact of inflation, the impact of rising costs,

163
00:09:05,240 --> 00:09:08,599
Speaker 1: and make sure that your portfolio and your financial strategy

164
00:09:08,920 --> 00:09:11,720
Speaker 1: prepares for this in a proactive way and you know

165
00:09:11,760 --> 00:09:14,760
Speaker 1: how to navigate it if you hit certain boundaries where

166
00:09:14,800 --> 00:09:19,560
Speaker 1: you see your investment portfolio being hit with volatility and

167
00:09:19,679 --> 00:09:22,040
Speaker 1: of course the rising cost of living. This is why

168
00:09:22,080 --> 00:09:25,040
Speaker 1: it's so important to make sure you build enough passive income,

169
00:09:25,520 --> 00:09:28,120
Speaker 1: ideally a little bit more passive income than what you need,

170
00:09:28,280 --> 00:09:30,280
Speaker 1: so that you never eat into the capital and you

171
00:09:30,400 --> 00:09:32,559
Speaker 1: never force into a situation where you have to crystallize

172
00:09:32,640 --> 00:09:35,680
Speaker 1: losses and sell things because your passive income no longer

173
00:09:35,920 --> 00:09:39,320
Speaker 1: covers your cost of living because of inflation. So always

174
00:09:39,320 --> 00:09:41,760
Speaker 1: obviously keep that in mind. But you need to prepare

175
00:09:41,800 --> 00:09:44,520
Speaker 1: for this and have safety nets in place. And of

176
00:09:44,559 --> 00:09:46,840
Speaker 1: course a lot of people don't realize if you set

177
00:09:46,840 --> 00:09:51,000
Speaker 1: yourself up for financial independence retirement early earlier in life,

178
00:09:51,000 --> 00:09:53,960
Speaker 1: sand your thirties, you need to also keep into consideration

179
00:09:54,600 --> 00:09:58,960
Speaker 1: your natural lifestyle evolving. I know one person in particular

180
00:09:58,960 --> 00:10:04,040
Speaker 1: who created successful fire strategy in their late twenties early thirties.

181
00:10:04,400 --> 00:10:06,880
Speaker 1: Everything was going great. They had so much freedom, so

182
00:10:07,000 --> 00:10:10,720
Speaker 1: much time, so much choice, so much travel. And then

183
00:10:10,760 --> 00:10:13,360
Speaker 1: they met someone and they decided to have a family,

184
00:10:14,080 --> 00:10:17,920
Speaker 1: and seeing what their cost of living changed you with

185
00:10:18,080 --> 00:10:21,559
Speaker 1: children with childcare, with having to have a bigger home

186
00:10:21,960 --> 00:10:26,800
Speaker 1: with more bedrooms, that person had to return back to work.

187
00:10:26,960 --> 00:10:28,960
Speaker 1: Of course, they didn't have to return back at the

188
00:10:29,000 --> 00:10:32,120
Speaker 1: same pace that their friends were to keep up with

189
00:10:32,200 --> 00:10:36,120
Speaker 1: the living expenses, but their fire strategy wasn't able to

190
00:10:36,160 --> 00:10:39,120
Speaker 1: evolve with them. Not that that's necessarily a bad thing

191
00:10:39,160 --> 00:10:40,680
Speaker 1: at all. I don't think so. I think it's an

192
00:10:40,679 --> 00:10:42,880
Speaker 1: exciting thing and great to be able to back in

193
00:10:42,920 --> 00:10:45,120
Speaker 1: the workforce and using your brain. But you need to

194
00:10:45,160 --> 00:10:48,320
Speaker 1: keep that in mind. How much flexibility do you need

195
00:10:48,360 --> 00:10:51,120
Speaker 1: for financial independence? How much do you want and you

196
00:10:51,520 --> 00:10:56,680
Speaker 1: will things like retiring, maybe having a healthcare scare, maybe

197
00:10:56,760 --> 00:10:58,480
Speaker 1: wanting to live in a different country where there are

198
00:10:58,480 --> 00:11:00,439
Speaker 1: different tax rates and different cost of living. How is

199
00:11:00,679 --> 00:11:03,920
Speaker 1: your financial fire strategy going to evolve with you and

200
00:11:04,000 --> 00:11:06,520
Speaker 1: your needs? Think about these things if you want a

201
00:11:06,520 --> 00:11:10,400
Speaker 1: really robust one. And then the fourth downside i'd say

202
00:11:10,520 --> 00:11:14,600
Speaker 1: of the fire movement is social challenges. Not everyone is

203
00:11:14,600 --> 00:11:17,720
Speaker 1: on board with the fire movement. Again, again, if everyone,

204
00:11:17,720 --> 00:11:21,160
Speaker 1: whiles everyone be doing this, there are going to be

205
00:11:21,280 --> 00:11:25,480
Speaker 1: family and friends who may not necessarily understand your choices.

206
00:11:25,880 --> 00:11:29,599
Speaker 1: If they see you being incredibly frugal with your spending,

207
00:11:29,920 --> 00:11:33,400
Speaker 1: they see you aggressively saving every penny, They see you

208
00:11:34,120 --> 00:11:37,840
Speaker 1: investing every dollar and maybe taking risks with it comes

209
00:11:37,840 --> 00:11:41,720
Speaker 1: to investing that they wouldn't necessarily take themselves. You may

210
00:11:41,800 --> 00:11:45,200
Speaker 1: find it a confronting experience and it can at times

211
00:11:45,640 --> 00:11:50,400
Speaker 1: feel isolating. However, whilst these people may not understand what

212
00:11:50,440 --> 00:11:54,080
Speaker 1: you're doing or may judge you even or think that

213
00:11:54,160 --> 00:11:58,520
Speaker 1: you're missing out on amazing opportunities in life, such as

214
00:11:58,559 --> 00:12:01,040
Speaker 1: travel or those spontaneous that ativities like going to a

215
00:12:01,080 --> 00:12:04,120
Speaker 1: concert and all those wonderful things, you also need to

216
00:12:04,160 --> 00:12:05,840
Speaker 1: know that you actually have a lot of power within

217
00:12:05,880 --> 00:12:08,280
Speaker 1: you to inspire those people who may be judging you

218
00:12:08,520 --> 00:12:12,640
Speaker 1: or maybe criticizing your personal financial decisions in life. So

219
00:12:13,120 --> 00:12:16,079
Speaker 1: understand that it goes both ways, but it definitely can

220
00:12:16,240 --> 00:12:19,160
Speaker 1: be isolating, particularly if you're having to say no, I

221
00:12:19,160 --> 00:12:21,160
Speaker 1: can't come to dinner, or no I can't go to

222
00:12:21,160 --> 00:12:23,640
Speaker 1: that concert, or no, I can't go on a holiday

223
00:12:23,800 --> 00:12:28,480
Speaker 1: this year. It can feel incredibly lonely. But again, turning

224
00:12:28,520 --> 00:12:31,400
Speaker 1: to a community online is a great opportunity to help

225
00:12:31,480 --> 00:12:34,079
Speaker 1: find that support and also obviously that motivation to keep going.

226
00:12:34,120 --> 00:12:36,760
Speaker 1: And I say, for someone who's been investing for a

227
00:12:36,840 --> 00:12:39,400
Speaker 1: very very long time, not just as a financial planner

228
00:12:39,400 --> 00:12:42,360
Speaker 1: but myself personally, and if you can push through these

229
00:12:42,360 --> 00:12:46,920
Speaker 1: particular challenges or downsides, the rewards are most definitely worth it.

230
00:12:46,960 --> 00:12:50,240
Speaker 1: I never have regretted investing, all right, So let's move

231
00:12:50,320 --> 00:12:52,560
Speaker 1: on now. To a step by step guide as to

232
00:12:52,600 --> 00:12:55,960
Speaker 1: how to do fire for yourself. Now, this is the

233
00:12:56,000 --> 00:12:57,920
Speaker 1: one step that I think a lot of people miss

234
00:12:58,160 --> 00:13:00,560
Speaker 1: because they just are so motivated and decided to get started,

235
00:13:01,000 --> 00:13:03,280
Speaker 1: and if they haven't done this, when they hit challenges,

236
00:13:03,320 --> 00:13:04,920
Speaker 1: this is where things can start to go wrong. So

237
00:13:05,000 --> 00:13:08,080
Speaker 1: in best time, please and listening to step one and

238
00:13:08,160 --> 00:13:12,439
Speaker 1: doing something about this. So this all starts with your mindset.

239
00:13:12,520 --> 00:13:15,640
Speaker 1: So the first step is understanding fire is a marathon,

240
00:13:15,960 --> 00:13:21,679
Speaker 1: not a sprint. There are going to be moments of frustration, disappointment, sacrifice,

241
00:13:22,360 --> 00:13:25,800
Speaker 1: and even boredom, and you are going to be it's

242
00:13:25,800 --> 00:13:28,520
Speaker 1: like watching paint dry when you're watching your investment portfolio grow.

243
00:13:29,000 --> 00:13:33,760
Speaker 1: But if you can stay committed, dedicated, keep showing up,

244
00:13:34,400 --> 00:13:38,080
Speaker 1: this is essential and your future self will most definitely

245
00:13:38,400 --> 00:13:41,680
Speaker 1: thank you. So what I would recommend for you is

246
00:13:41,720 --> 00:13:44,240
Speaker 1: to do a list, a list of at least ten

247
00:13:44,320 --> 00:13:47,160
Speaker 1: points as to why you want to do this for yourself,

248
00:13:47,559 --> 00:13:52,040
Speaker 1: so that your mindset shift happens and you understand what

249
00:13:52,280 --> 00:13:54,720
Speaker 1: you are doing and why, so that when those setbacks

250
00:13:54,720 --> 00:13:58,440
Speaker 1: and challenges happen, you are strong, you are resilient. Yes,

251
00:13:58,480 --> 00:14:00,000
Speaker 1: they may get you down for a day or two.

252
00:14:00,120 --> 00:14:03,200
Speaker 1: But once the clouds pass, you're back on it and

253
00:14:03,240 --> 00:14:06,000
Speaker 1: you hit the ground running again because you know your why.

254
00:14:06,400 --> 00:14:09,960
Speaker 1: So bullet point, why do you want financial freedom and independence?

255
00:14:10,200 --> 00:14:13,360
Speaker 1: Perhaps it's something really deep and personal. You want to

256
00:14:13,559 --> 00:14:16,640
Speaker 1: break the pattern you maybe grew up in poverty or

257
00:14:16,960 --> 00:14:20,320
Speaker 1: grew up in a financially volatile environment. You want to

258
00:14:20,360 --> 00:14:23,600
Speaker 1: create consistency, You want to create stability, you want to

259
00:14:23,640 --> 00:14:27,280
Speaker 1: create peace of mind. Also, you might think, well, I

260
00:14:27,360 --> 00:14:30,120
Speaker 1: really am passionate about helping people. This is going to

261
00:14:30,160 --> 00:14:32,720
Speaker 1: help me. Having financial freedom and independence is going to

262
00:14:32,720 --> 00:14:34,600
Speaker 1: allow me to give back. It's going to give me

263
00:14:34,680 --> 00:14:36,760
Speaker 1: more time for my children. It's going to allow me

264
00:14:36,880 --> 00:14:40,360
Speaker 1: to afford to educate my children or educate my grandchildren.

265
00:14:40,760 --> 00:14:44,240
Speaker 1: Least at least ten important points to you as to

266
00:14:44,400 --> 00:14:47,120
Speaker 1: why this is important to you and what your true

267
00:14:47,120 --> 00:14:49,000
Speaker 1: why is really about, and go as deep as you

268
00:14:49,000 --> 00:14:52,040
Speaker 1: possibly can. The more you write down, you'll be surprised

269
00:14:52,120 --> 00:14:55,120
Speaker 1: how much more flows, and how much more was lingering

270
00:14:55,160 --> 00:14:58,760
Speaker 1: around in your heatheart and soul that you now actually

271
00:14:58,800 --> 00:15:01,680
Speaker 1: understand about yourself. It's quite beautiful experience, So please do

272
00:15:01,760 --> 00:15:04,440
Speaker 1: this mindset work. Step number two is to know what

273
00:15:04,520 --> 00:15:07,600
Speaker 1: type of fire you want so before you start, you've

274
00:15:07,600 --> 00:15:10,720
Speaker 1: got to get clear, crystal clear. There are various versions

275
00:15:10,760 --> 00:15:12,960
Speaker 1: of fire, so you need to work out which one

276
00:15:13,000 --> 00:15:16,240
Speaker 1: actually resonates with you. So here are just a few

277
00:15:16,400 --> 00:15:20,640
Speaker 1: to consider. Number one is the lean fire movement. So

278
00:15:20,760 --> 00:15:25,200
Speaker 1: this means living off a minimal budget, literally living off

279
00:15:25,240 --> 00:15:29,320
Speaker 1: the scent of an oily rag, and you aggressively save

280
00:15:29,600 --> 00:15:33,320
Speaker 1: and invest absolutely everything in order to be able to

281
00:15:33,400 --> 00:15:37,040
Speaker 1: retire as soon as possible. Now I should point out

282
00:15:37,080 --> 00:15:40,520
Speaker 1: with the lean fire strategy, yes you are living in

283
00:15:40,560 --> 00:15:43,720
Speaker 1: a very lean way, but you're also creating a very

284
00:15:43,920 --> 00:15:47,160
Speaker 1: lean fire strategy because you're trying to retire as soon

285
00:15:47,200 --> 00:15:49,360
Speaker 1: as possible. You may have actually not given that passive

286
00:15:49,400 --> 00:15:53,840
Speaker 1: income a love time to flourish and grow and compound

287
00:15:53,920 --> 00:15:58,280
Speaker 1: to give you a comfortable fire strategy. So yes, it

288
00:15:58,360 --> 00:16:02,760
Speaker 1: means living lean today, but also potentially living lean tomorrow

289
00:16:02,840 --> 00:16:05,160
Speaker 1: as well. Not necessarily a bad thing, but for people

290
00:16:05,160 --> 00:16:08,960
Speaker 1: who are happy to live on a very type budget,

291
00:16:09,000 --> 00:16:12,080
Speaker 1: they like that that fits in they're with their lifestyle.

292
00:16:12,480 --> 00:16:15,720
Speaker 1: This is potentially the path to choose because obviously it

293
00:16:15,720 --> 00:16:17,880
Speaker 1: means they can retire earlier, but they're also be able

294
00:16:17,920 --> 00:16:20,960
Speaker 1: to maintain that type budget for the rest of their lives.

295
00:16:21,520 --> 00:16:24,640
Speaker 1: The second one is the fat fire movement. So this

296
00:16:24,720 --> 00:16:28,640
Speaker 1: means of course saving and investing aggressively, but you're doing

297
00:16:28,680 --> 00:16:31,640
Speaker 1: it more to retire with a higher standard living, so

298
00:16:31,640 --> 00:16:34,440
Speaker 1: it's sort of one up from the lean fire strategy.

299
00:16:34,920 --> 00:16:37,600
Speaker 1: You are trying to build more passive income so that

300
00:16:37,680 --> 00:16:41,120
Speaker 1: you have greater freedom, greater choice, more time, more luxury.

301
00:16:41,480 --> 00:16:43,640
Speaker 1: This is probably one of the ones which I probably

302
00:16:43,760 --> 00:16:47,240
Speaker 1: recommend and probably resonate with. Then of course there is

303
00:16:47,280 --> 00:16:51,239
Speaker 1: the coast fire strategy. So this is reaching a point

304
00:16:51,400 --> 00:16:55,160
Speaker 1: where your investments grow on their own and allow you

305
00:16:55,240 --> 00:16:58,400
Speaker 1: to slow down without having to stress about additional savings,

306
00:16:59,040 --> 00:17:02,160
Speaker 1: so you are in on a regular basis. It's not

307
00:17:02,200 --> 00:17:05,760
Speaker 1: necessarily as aggressive from a time point of view, but

308
00:17:05,960 --> 00:17:08,760
Speaker 1: you are being consistent over a longer period of time,

309
00:17:09,200 --> 00:17:12,360
Speaker 1: and you are focusing on the power of pounding interest

310
00:17:12,400 --> 00:17:14,880
Speaker 1: where you can get to that sweet spot where that

311
00:17:14,920 --> 00:17:18,960
Speaker 1: passive income now grows on its own. It's being reinvested,

312
00:17:19,320 --> 00:17:21,359
Speaker 1: and you can obviously take some of that income if

313
00:17:21,359 --> 00:17:24,840
Speaker 1: you don't want to reinvest it with it adding value

314
00:17:24,840 --> 00:17:27,960
Speaker 1: to your life and never involves tapping into the actual

315
00:17:28,000 --> 00:17:31,400
Speaker 1: capital or eating into your savings. So the Coast fire

316
00:17:31,440 --> 00:17:34,520
Speaker 1: strategy is very much focused and it has a strong

317
00:17:34,600 --> 00:17:39,000
Speaker 1: bias towards long term growing passive income for that freedom.

318
00:17:39,600 --> 00:17:41,760
Speaker 1: Then there is the Barista fire, and I think this

319
00:17:41,800 --> 00:17:44,720
Speaker 1: is one that I think is a really healthy one

320
00:17:44,720 --> 00:17:47,520
Speaker 1: that I think is really achievable, and I think would

321
00:17:47,520 --> 00:17:51,080
Speaker 1: fit into a lot of people's lifestyles, particularly you know,

322
00:17:51,119 --> 00:17:53,560
Speaker 1: people who are having a family. So this is enough

323
00:17:53,760 --> 00:17:56,680
Speaker 1: having enough financial freedom in order to be able to

324
00:17:56,720 --> 00:18:00,640
Speaker 1: cover most of your living expenses. But you still need

325
00:18:00,680 --> 00:18:04,400
Speaker 1: to work, but maybe on a part time basis or

326
00:18:04,840 --> 00:18:08,400
Speaker 1: on a sort of a contracting basis, so you still

327
00:18:08,440 --> 00:18:12,120
Speaker 1: have your finger on the pulse. You're still getting experience

328
00:18:12,160 --> 00:18:15,040
Speaker 1: in the workforce, you're still adding value to the world.

329
00:18:15,520 --> 00:18:19,199
Speaker 1: You're still acts of service and doing all those important

330
00:18:19,200 --> 00:18:20,600
Speaker 1: things you might have like a business that you work

331
00:18:20,640 --> 00:18:22,440
Speaker 1: on part time, or you might have a part time job,

332
00:18:22,520 --> 00:18:26,600
Speaker 1: or you're doing contracting work. But your living expenses are

333
00:18:26,640 --> 00:18:30,920
Speaker 1: also supplemented by that passive income or that investment portfolio

334
00:18:30,960 --> 00:18:35,359
Speaker 1: that you have built over time. So the last three

335
00:18:35,400 --> 00:18:38,000
Speaker 1: ones I think are I think the most healthy. You know,

336
00:18:38,520 --> 00:18:40,560
Speaker 1: I'm coming from someone with twenty two years experience in

337
00:18:40,600 --> 00:18:44,719
Speaker 1: financial planning. They allow their realistic. I feel they allow

338
00:18:45,119 --> 00:18:47,640
Speaker 1: the best of both worlds. They allow you to keep

339
00:18:47,720 --> 00:18:51,040
Speaker 1: using your brain, keep making sure that you have your

340
00:18:51,080 --> 00:18:54,119
Speaker 1: skills there, you know, adding value to the world. But

341
00:18:54,160 --> 00:18:57,040
Speaker 1: also it understands that your life is changing and evolving

342
00:18:57,320 --> 00:18:59,280
Speaker 1: and you're still building up that passive income. You can

343
00:18:59,400 --> 00:19:02,320
Speaker 1: still have that, particularly with a burist one, to earn

344
00:19:02,359 --> 00:19:05,680
Speaker 1: extra money that you continue to contribute towards your investment portfolio.

345
00:19:06,200 --> 00:19:09,280
Speaker 1: So you need to spend time exploring which one resonates

346
00:19:09,280 --> 00:19:11,520
Speaker 1: with you the most, and which one you decide that

347
00:19:11,560 --> 00:19:13,199
Speaker 1: you want to jump on and be as part of

348
00:19:13,240 --> 00:19:15,840
Speaker 1: your own financial strategy. And of course you can. You

349
00:19:15,840 --> 00:19:17,800
Speaker 1: don't have to pick one to stick to it over time.

350
00:19:17,840 --> 00:19:19,680
Speaker 1: You might want you to go start with a lean one,

351
00:19:20,040 --> 00:19:22,000
Speaker 1: the lean fire movement, and then move towards, say the

352
00:19:22,000 --> 00:19:24,480
Speaker 1: coast fire movement. It's completely up to you. But understand

353
00:19:24,480 --> 00:19:28,199
Speaker 1: the different different categories and which one resonates with you

354
00:19:28,240 --> 00:19:31,879
Speaker 1: the most. You don't necessarily into pigeonhole yourself. Then step

355
00:19:31,960 --> 00:19:34,440
Speaker 1: number three, and this is the most important one we

356
00:19:34,600 --> 00:19:36,000
Speaker 1: must all do if we want to do this, that

357
00:19:36,160 --> 00:19:40,960
Speaker 1: is to start start investing. Start investing as soon as possible,

358
00:19:41,280 --> 00:19:46,280
Speaker 1: but invest consistently. So the key to fire is making

359
00:19:46,320 --> 00:19:48,439
Speaker 1: your money work for you. That is passive income, and

360
00:19:48,480 --> 00:19:52,120
Speaker 1: this means investing in assets that generate passive income such

361
00:19:52,119 --> 00:19:55,600
Speaker 1: as tibot ends, rant earning interest. So these types of

362
00:19:55,640 --> 00:20:00,000
Speaker 1: assets to create that passive income are stocks, they are ETFs,

363
00:20:00,119 --> 00:20:03,320
Speaker 1: listed investment companies, investment properties, and of course high DAN

364
00:20:03,480 --> 00:20:08,000
Speaker 1: savings accounts or even bonds for security. So you really

365
00:20:08,000 --> 00:20:10,359
Speaker 1: need to focus on the assets that will provide few

366
00:20:10,520 --> 00:20:15,720
Speaker 1: long term sustainable growth and sustainable passive income through cash

367
00:20:15,720 --> 00:20:18,840
Speaker 1: flow so that you don't actually have to actively rely

368
00:20:18,960 --> 00:20:22,560
Speaker 1: on yourself to actually earn and make money. But I

369
00:20:22,720 --> 00:20:27,480
Speaker 1: will say this, if you want long term growing, sustainable

370
00:20:27,560 --> 00:20:30,199
Speaker 1: financial freedom and independence, you've got to be looking at

371
00:20:30,240 --> 00:20:33,200
Speaker 1: two dimensional assets. Now I've spoken about this and lots

372
00:20:33,200 --> 00:20:35,359
Speaker 1: of other podcasts, so if you want to learn more,

373
00:20:35,520 --> 00:20:37,960
Speaker 1: definitely go listen to my episodes on investing in listen

374
00:20:38,000 --> 00:20:41,440
Speaker 1: investment companies, investing in shares, investing in property. But essentially,

375
00:20:41,440 --> 00:20:45,000
Speaker 1: a two dimensional asset is an asset that grows in value.

376
00:20:45,280 --> 00:20:47,080
Speaker 1: So you know, a stock that grows from say ten

377
00:20:47,160 --> 00:20:50,760
Speaker 1: dollars to eleven dollars, but it also creates an income

378
00:20:50,840 --> 00:20:54,400
Speaker 1: stream and that income stream grows with the capital growth,

379
00:20:54,640 --> 00:20:58,280
Speaker 1: so that ten dollars stock may pay, for example, fifty

380
00:20:58,320 --> 00:21:00,800
Speaker 1: cents for the one year the stock goes up for

381
00:21:00,840 --> 00:21:05,240
Speaker 1: simplistic terms, to eleven dollars. Next year, that passive income,

382
00:21:05,240 --> 00:21:09,120
Speaker 1: that dividend is now fifty five cents. See how you've

383
00:21:09,160 --> 00:21:12,080
Speaker 1: got two sets of growth happening. You've got growth in

384
00:21:12,119 --> 00:21:14,280
Speaker 1: the passive income, the dividend income, and you've got growth

385
00:21:14,280 --> 00:21:18,120
Speaker 1: in the capital value. Now, of course, yes, shares, property,

386
00:21:18,280 --> 00:21:21,240
Speaker 1: these two dimension types of two dimensional assets are volatile,

387
00:21:21,840 --> 00:21:24,200
Speaker 1: and they are long term investments. They're not selling you'd

388
00:21:24,200 --> 00:21:26,680
Speaker 1: invested in for say two years, five years, or even

389
00:21:26,720 --> 00:21:29,520
Speaker 1: I think seven years. They are long term growth. But

390
00:21:29,560 --> 00:21:32,480
Speaker 1: my point is you want your passive income to be

391
00:21:32,560 --> 00:21:36,960
Speaker 1: growing organically. You want that passive income obviously to be

392
00:21:37,000 --> 00:21:39,639
Speaker 1: in reinvested, which helps it grow, but you want to

393
00:21:39,760 --> 00:21:43,640
Speaker 1: have that element of two dimensional passive income growth. That

394
00:21:43,680 --> 00:21:46,720
Speaker 1: will then mean with your passive income that you live off,

395
00:21:46,880 --> 00:21:49,760
Speaker 1: it can help keep up with inflation, or even better,

396
00:21:49,880 --> 00:21:53,560
Speaker 1: it exceeds inflation, so that you always earn more passive

397
00:21:53,600 --> 00:21:55,760
Speaker 1: income than what you want. And that is what I

398
00:21:55,760 --> 00:22:00,120
Speaker 1: would actually call the Rolls Royce fire strategy, which is mine.

399
00:22:00,359 --> 00:22:02,600
Speaker 1: Now I will talk about this at the very end

400
00:22:02,640 --> 00:22:05,800
Speaker 1: of the episode my own financial strategy, the Rolls Royce

401
00:22:05,800 --> 00:22:08,240
Speaker 1: one that I'm ultimately working towards, and if you like,

402
00:22:08,320 --> 00:22:09,960
Speaker 1: I will do a separate episode, but you need to

403
00:22:10,040 --> 00:22:12,040
Speaker 1: let me know if you actually want that. But I

404
00:22:12,080 --> 00:22:14,840
Speaker 1: want to continue on with the steps as to one

405
00:22:14,840 --> 00:22:18,119
Speaker 1: on one on the fire strategy. So step number four,

406
00:22:18,240 --> 00:22:20,720
Speaker 1: if you want to do this, is you've got to

407
00:22:20,800 --> 00:22:24,960
Speaker 1: increase your income. Now, as I mentioned, we need to invest.

408
00:22:25,160 --> 00:22:27,280
Speaker 1: So how do we start investing if we don't have

409
00:22:27,280 --> 00:22:29,080
Speaker 1: any money to invest? And this is why I say

410
00:22:29,119 --> 00:22:33,359
Speaker 1: step four, You've got to increase your income. Whilst savings

411
00:22:33,400 --> 00:22:35,919
Speaker 1: is obviously crucial for everyone's financial well being to a

412
00:22:35,920 --> 00:22:38,840
Speaker 1: certain degree, you've got to earn more so you can

413
00:22:38,880 --> 00:22:41,840
Speaker 1: accelerate your fire journey. That is, earn more money so

414
00:22:41,880 --> 00:22:44,720
Speaker 1: you can invest more. So we need to think outside

415
00:22:44,760 --> 00:22:47,200
Speaker 1: of the squares to what additional things you can boost

416
00:22:47,280 --> 00:22:50,600
Speaker 1: your income. So things like starting up a side hustle,

417
00:22:51,240 --> 00:22:54,720
Speaker 1: doing some freelancing or consulting work, asking for a pay

418
00:22:54,840 --> 00:22:57,119
Speaker 1: rise or a promotion, or applying for a new job,

419
00:22:57,920 --> 00:23:01,000
Speaker 1: up skilling, investing in yourself, doing some additional training, and

420
00:23:01,240 --> 00:23:03,840
Speaker 1: you may be a deployment or a graduate diployment, or

421
00:23:03,840 --> 00:23:06,760
Speaker 1: even looking into a master's to increase your earning potential.

422
00:23:07,240 --> 00:23:09,600
Speaker 1: The more income you can earn, the more money you

423
00:23:09,640 --> 00:23:12,080
Speaker 1: can then funnel into investments, which means you're going to

424
00:23:12,080 --> 00:23:16,240
Speaker 1: reach financial independence so much sooner. But I will point

425
00:23:16,280 --> 00:23:19,080
Speaker 1: this out to come back to one of the downsides

426
00:23:19,080 --> 00:23:21,720
Speaker 1: of risks. I touched on the concept of burnout, which

427
00:23:21,720 --> 00:23:23,800
Speaker 1: is what a lot of people have done in their

428
00:23:23,840 --> 00:23:27,800
Speaker 1: financial strategy when they've gone to aggressively too quickly. If

429
00:23:27,880 --> 00:23:30,080
Speaker 1: you want to do something like this, take on a

430
00:23:30,119 --> 00:23:32,960
Speaker 1: side huse le, do freelancing, take on an extra job,

431
00:23:33,000 --> 00:23:36,879
Speaker 1: work a weekend, you invest in your skills, do a

432
00:23:36,960 --> 00:23:40,000
Speaker 1: master's an NBA. You need to understand you've got to

433
00:23:40,040 --> 00:23:43,120
Speaker 1: look after your energy. Do these things if you can,

434
00:23:43,280 --> 00:23:46,040
Speaker 1: imburst in spurts and the moment your body says all right,

435
00:23:46,080 --> 00:23:48,359
Speaker 1: I'm exhausted, I'm tired, I need a break, listen to

436
00:23:48,400 --> 00:23:51,000
Speaker 1: it and take that break. You never want to get

437
00:23:51,040 --> 00:23:53,840
Speaker 1: to a point where you completely burn yourself out that

438
00:23:53,960 --> 00:23:57,040
Speaker 1: you can't actually then enjoy your financial freedom and independence.

439
00:23:57,600 --> 00:23:59,480
Speaker 1: You're burnt your run down, and this is when we

440
00:23:59,680 --> 00:24:02,920
Speaker 1: become sick. And also when we're tired and run down,

441
00:24:02,960 --> 00:24:06,640
Speaker 1: we're not concentrating, and this is when accidents happen. So

442
00:24:06,680 --> 00:24:09,679
Speaker 1: you really got to be in tune with your body,

443
00:24:10,119 --> 00:24:12,800
Speaker 1: in tune with what your body needs. When you have

444
00:24:12,920 --> 00:24:16,080
Speaker 1: the you're in the optimal zone and you are happy

445
00:24:16,160 --> 00:24:20,240
Speaker 1: to do those extra hours, work that weekend shift, take

446
00:24:20,280 --> 00:24:23,320
Speaker 1: on that new risk with your business, that's great. Do

447
00:24:23,440 --> 00:24:27,119
Speaker 1: those then, But the moment you feel some pullbacks and push,

448
00:24:27,240 --> 00:24:29,520
Speaker 1: some signs that you're not well. You are starting to

449
00:24:29,560 --> 00:24:33,040
Speaker 1: be tied, you're sleep deprived, you're not regulating your emotions

450
00:24:33,040 --> 00:24:35,320
Speaker 1: like you normally would, that is your sign to slow

451
00:24:35,400 --> 00:24:37,280
Speaker 1: down and give yourself a break. And that's why I

452
00:24:37,359 --> 00:24:39,600
Speaker 1: like to apply the principle of burst and spurts to

453
00:24:39,680 --> 00:24:43,679
Speaker 1: my financial strategy, my fire strategy, so that when I

454
00:24:43,760 --> 00:24:45,600
Speaker 1: need to, I listen to my body and go all right,

455
00:24:45,800 --> 00:24:48,159
Speaker 1: I've gone hard. I've like declutted a whole part of

456
00:24:48,200 --> 00:24:50,000
Speaker 1: stuff and sold it. I need a break. I need

457
00:24:50,000 --> 00:24:51,760
Speaker 1: to catch my breath, I need to reset, I need

458
00:24:51,800 --> 00:24:54,359
Speaker 1: to recharge, and that's when I'll just be quiet. It

459
00:24:54,359 --> 00:24:55,840
Speaker 1: doesn't mean I got and spend a lot of money

460
00:24:55,920 --> 00:24:57,800
Speaker 1: and under all the hard work. It just means I

461
00:24:57,880 --> 00:25:00,480
Speaker 1: lay low for a bit, go under the radar and

462
00:25:00,600 --> 00:25:03,120
Speaker 1: just sit. Let my investments stay as they are, don't

463
00:25:03,160 --> 00:25:05,560
Speaker 1: touch them, let my savings stay there. I don't touch them,

464
00:25:05,720 --> 00:25:07,320
Speaker 1: but I listen to my body, and I try to

465
00:25:07,400 --> 00:25:10,800
Speaker 1: refuel my body in a really kind way that doesn't

466
00:25:10,800 --> 00:25:13,679
Speaker 1: involve money. Things like going to bed early, having a

467
00:25:13,720 --> 00:25:18,280
Speaker 1: warm bath, jumping in the ocean, spending time with nature, disconnecting,

468
00:25:18,480 --> 00:25:21,840
Speaker 1: doing a digital detox for a weekend. All those little

469
00:25:21,840 --> 00:25:24,720
Speaker 1: things that helped me get my energy levels back, my

470
00:25:24,800 --> 00:25:27,560
Speaker 1: focus back, and reconnect with my wife, as I talked

471
00:25:27,560 --> 00:25:31,119
Speaker 1: about in step one, that mindset. And then step number

472
00:25:31,160 --> 00:25:35,399
Speaker 1: five your emergency money. As we have spoken about in

473
00:25:35,400 --> 00:25:38,560
Speaker 1: many episodes, life can be incredibly unpredictable and the last

474
00:25:38,600 --> 00:25:40,520
Speaker 1: thing you ever want to be is forced into position

475
00:25:40,560 --> 00:25:44,040
Speaker 1: where you have to sell your investments because you didn't

476
00:25:44,040 --> 00:25:47,040
Speaker 1: have enough emergency money or we didn't have any emergency money.

477
00:25:47,119 --> 00:25:51,199
Speaker 1: You must have a separate, dedicated savings account purely for

478
00:25:51,320 --> 00:25:54,520
Speaker 1: emergency and yes, if you have a mortgage, the redrawer

479
00:25:54,600 --> 00:25:56,520
Speaker 1: or offset account is fine as long as it's a

480
00:25:56,560 --> 00:25:59,720
Speaker 1: dedicated account purely for emergency money. Now, there is no

481
00:25:59,720 --> 00:26:02,720
Speaker 1: Madam formula for how much emergency money you need. Even

482
00:26:02,720 --> 00:26:05,720
Speaker 1: though I have recently seen people recommend three to twelve

483
00:26:05,760 --> 00:26:09,440
Speaker 1: months worth of living expenses, you need your own definition

484
00:26:09,520 --> 00:26:12,879
Speaker 1: of financial security when it comes to emergency money. I know,

485
00:26:13,320 --> 00:26:16,760
Speaker 1: for our family, when we had seventy thousand dollars worth

486
00:26:16,760 --> 00:26:19,080
Speaker 1: of expenses come up, and actually we had more than

487
00:26:19,080 --> 00:26:21,440
Speaker 1: seventy thousand dollars, it wiped all of our emergency money

488
00:26:21,520 --> 00:26:24,359
Speaker 1: because we only had seventy saved up. So that was

489
00:26:24,359 --> 00:26:26,000
Speaker 1: a big wake up call for me to realize and

490
00:26:26,000 --> 00:26:28,359
Speaker 1: reassess that as a family of five, Tom and I

491
00:26:28,400 --> 00:26:30,960
Speaker 1: both work for ourselves, so we don't have no super guarantee,

492
00:26:31,000 --> 00:26:32,880
Speaker 1: and we don't have annually or sick leave or long

493
00:26:32,920 --> 00:26:35,960
Speaker 1: service leave. We needed more, and our emergency money I

494
00:26:36,000 --> 00:26:38,040
Speaker 1: worked out to be was actually in excess of one

495
00:26:38,080 --> 00:26:41,560
Speaker 1: hundred thousand dollars. Whereas someone who is young has no

496
00:26:41,680 --> 00:26:45,879
Speaker 1: financial responsibilities, you know does has maybe a lot of

497
00:26:45,920 --> 00:26:48,920
Speaker 1: annual leaves saved up, has lots of sick leaves saved up.

498
00:26:49,160 --> 00:26:51,399
Speaker 1: You may not necessarily need one hundred thousand dollars. You

499
00:26:51,440 --> 00:26:54,080
Speaker 1: may only need twenty thousand dollars or twenty five thousand dollars,

500
00:26:54,440 --> 00:26:56,720
Speaker 1: But sit down and work out how much emergency money

501
00:26:56,760 --> 00:26:58,640
Speaker 1: you need. And if you ever want to learn about

502
00:26:58,640 --> 00:27:00,760
Speaker 1: this in more detail, mindful Money, I have a chapter

503
00:27:00,920 --> 00:27:02,719
Speaker 1: dedicated to show you how to work out how much

504
00:27:02,760 --> 00:27:06,240
Speaker 1: emergency money you need. But promise me this that emergency

505
00:27:06,240 --> 00:27:08,840
Speaker 1: money is separate from your living expense account. It is

506
00:27:08,840 --> 00:27:11,840
Speaker 1: separate from your holiday savings account, it is separate from

507
00:27:11,880 --> 00:27:16,080
Speaker 1: your investing account. It is purely for your emergency money.

508
00:27:16,240 --> 00:27:18,560
Speaker 1: Trust me on that you never want to just have

509
00:27:18,640 --> 00:27:21,040
Speaker 1: to sell everything up because you didn't plan and prepare

510
00:27:21,080 --> 00:27:24,600
Speaker 1: for an emergency. Nobody is immune from emergencies, and no

511
00:27:24,640 --> 00:27:28,119
Speaker 1: one is completely resilient and protected from emergencies. And no

512
00:27:28,119 --> 00:27:30,280
Speaker 1: one has ever said to me, geez, I wish I

513
00:27:30,320 --> 00:27:33,240
Speaker 1: didn't have so much money in emergency money. Okay, And

514
00:27:33,280 --> 00:27:36,639
Speaker 1: then step number six, the final step, track your progress

515
00:27:36,880 --> 00:27:41,640
Speaker 1: and adjust so reaching financial dependence and retiring early. It's

516
00:27:41,680 --> 00:27:44,639
Speaker 1: a long term game plan. It is not going to

517
00:27:44,720 --> 00:27:48,080
Speaker 1: happen overnight. It might happen overnight, but it's highly unlikely

518
00:27:48,160 --> 00:27:51,480
Speaker 1: unless you win the lottery. But for this reason, it

519
00:27:51,520 --> 00:27:54,480
Speaker 1: is so important that you track your savings, you track

520
00:27:54,680 --> 00:27:59,040
Speaker 1: your investments, you track your growing passive income, and of

521
00:27:59,040 --> 00:28:03,400
Speaker 1: course you track your living expenses. You've got to understand

522
00:28:03,640 --> 00:28:05,719
Speaker 1: what you are doing and what is working and what

523
00:28:05,800 --> 00:28:09,120
Speaker 1: is not working, and in that review process, make those

524
00:28:09,160 --> 00:28:13,040
Speaker 1: tweaks and changes and adjustments. Look at what you need

525
00:28:13,080 --> 00:28:15,560
Speaker 1: to cut down, what is creeping up, what is getting

526
00:28:15,560 --> 00:28:17,760
Speaker 1: out of control, What is a potential challenge, what is

527
00:28:17,800 --> 00:28:21,520
Speaker 1: a potential risk. What investments are generating the best and

528
00:28:21,560 --> 00:28:24,840
Speaker 1: most passive income for you is their ability to maybe

529
00:28:24,880 --> 00:28:26,959
Speaker 1: to invest more in those assets so that you can

530
00:28:27,000 --> 00:28:30,800
Speaker 1: achieve your goals sooner. You also need to track the

531
00:28:30,840 --> 00:28:35,439
Speaker 1: progress for pure motivation. When you actually see that this

532
00:28:35,560 --> 00:28:38,840
Speaker 1: is working, you now have your first thousand dollars a

533
00:28:38,880 --> 00:28:41,840
Speaker 1: year in passive income, it is a really powerful moment

534
00:28:42,360 --> 00:28:45,520
Speaker 1: because it is your sign that you are doing the

535
00:28:45,640 --> 00:28:49,400
Speaker 1: right work and to keep going. And next time you

536
00:28:49,440 --> 00:28:51,720
Speaker 1: come back and you look at that progress. Now you

537
00:28:51,800 --> 00:28:54,200
Speaker 1: earn fifteen hundred dollars a year in passive income. You

538
00:28:54,240 --> 00:28:56,479
Speaker 1: can get excited. You can see that there is light

539
00:28:56,520 --> 00:28:58,320
Speaker 1: at the end of the tunnel. This is working. All

540
00:28:58,360 --> 00:29:02,320
Speaker 1: those sacrifices, its hard work, that commitment, the dedication is

541
00:29:02,480 --> 00:29:06,480
Speaker 1: paying off. Your life is looking very different. Your future

542
00:29:06,520 --> 00:29:10,120
Speaker 1: is exciting. Your future is filled with financial harmony and

543
00:29:10,240 --> 00:29:13,960
Speaker 1: freedom and luxury and time and choice. That is going

544
00:29:14,000 --> 00:29:17,360
Speaker 1: to be your key source of motivation for when tough

545
00:29:17,400 --> 00:29:20,360
Speaker 1: times happen, when those setbacks happen, when those challenges happen,

546
00:29:20,400 --> 00:29:23,360
Speaker 1: because you can come back and see how far you've

547
00:29:23,360 --> 00:29:26,560
Speaker 1: come in a very short period of time, and that

548
00:29:26,640 --> 00:29:29,320
Speaker 1: will allow you to give you the faith and confidence

549
00:29:29,480 --> 00:29:32,880
Speaker 1: to get back on the bandwagon. Sure, you might feel sad,

550
00:29:32,920 --> 00:29:35,080
Speaker 1: you may feel frustrated, but you will go back to

551
00:29:35,160 --> 00:29:38,920
Speaker 1: this game plan because you know it's worked, it pays off.

552
00:29:40,040 --> 00:29:43,200
Speaker 1: So there you have it, the beginner's Guide to the

553
00:29:43,200 --> 00:29:46,719
Speaker 1: Fire movement. Whilst it definitely does take discipline at a

554
00:29:47,240 --> 00:29:50,120
Speaker 1: shitload of patients, the ultimate reward at the end of

555
00:29:50,120 --> 00:29:53,040
Speaker 1: the day is freedom. Freedom for you and I know

556
00:29:53,120 --> 00:29:58,080
Speaker 1: for myself, freedom is priceless. Now, as mentioned, I call

557
00:29:58,160 --> 00:30:02,760
Speaker 1: my own fire strategy Roles Voice strategy. It is something

558
00:30:02,760 --> 00:30:06,640
Speaker 1: that I am working towards actively. Every day, I'm reviewing,

559
00:30:06,680 --> 00:30:09,520
Speaker 1: I'm tracking and adjusting and tweaking my strategy. I have

560
00:30:09,560 --> 00:30:12,600
Speaker 1: my emergency money or building along the way bubbling away

561
00:30:13,280 --> 00:30:17,280
Speaker 1: and I am constantly saving, reviewing my budget and investing.

562
00:30:17,760 --> 00:30:19,880
Speaker 1: So if you would like me to make a special

563
00:30:19,920 --> 00:30:22,240
Speaker 1: episode where I share with you what my rolls. Royce

564
00:30:22,600 --> 00:30:27,239
Speaker 1: Fire strategy is please leave me a rating review and

565
00:30:27,520 --> 00:30:31,200
Speaker 1: say canna, please share with us your roles Royce Fire

566
00:30:31,280 --> 00:30:34,600
Speaker 1: strategy because when I see those reviews and hopefully you

567
00:30:34,640 --> 00:30:37,680
Speaker 1: give me a good rating, I pray I will then

568
00:30:37,720 --> 00:30:40,200
Speaker 1: make sure that I make that as a priority for you,

569
00:30:40,360 --> 00:30:42,360
Speaker 1: because I listen to what you say, I listen to

570
00:30:42,400 --> 00:30:44,840
Speaker 1: what you want, and I always try and deliver it

571
00:30:44,880 --> 00:30:46,680
Speaker 1: to the best of my ability for you, because I'm

572
00:30:46,720 --> 00:30:49,680
Speaker 1: serious about helping you guide you, motivate you, and inspire

573
00:30:49,720 --> 00:30:52,880
Speaker 1: you to take better decisions with your money. Now, if

574
00:30:52,920 --> 00:30:54,960
Speaker 1: you enjoyed today's episode, I would love it if you

575
00:30:54,960 --> 00:30:57,200
Speaker 1: can make sure you are following this show, Sugar Mams

576
00:30:57,200 --> 00:30:59,960
Speaker 1: Fireplay so you never miss episode. It goes live everyone

577
00:31:00,040 --> 00:31:02,480
Speaker 1: Monday morning at five am, so that you start you'll

578
00:31:02,520 --> 00:31:05,600
Speaker 1: week off on an inspired and motivated note. And of course,

579
00:31:05,720 --> 00:31:08,520
Speaker 1: if you're enjoying listening to this channel, I'd love to

580
00:31:08,560 --> 00:31:09,960
Speaker 1: hear from you. I'd love to hear about what you

581
00:31:10,040 --> 00:31:12,240
Speaker 1: want to hear more of. I'd love to hear what

582
00:31:12,600 --> 00:31:15,480
Speaker 1: particular episodes you really loved, and even episodes that you

583
00:31:15,520 --> 00:31:18,880
Speaker 1: didn't actually like. I appreciate your feedback. I promise you

584
00:31:18,920 --> 00:31:21,280
Speaker 1: I will take it on constructively and yes, I promise

585
00:31:21,320 --> 00:31:24,640
Speaker 1: you I will listen wholeheartedly. So please send me a message,

586
00:31:24,640 --> 00:31:27,080
Speaker 1: maybe on Instagram or of course, as you said, you

587
00:31:27,120 --> 00:31:29,360
Speaker 1: can leave me a rating review and leave your feedback there.

588
00:31:29,920 --> 00:31:33,920
Speaker 1: Now until next time, stay focused, stay patient, and keep

589
00:31:33,960 --> 00:31:37,560
Speaker 1: working towards your own financial freedom and as always, keep

590
00:31:37,600 --> 00:31:41,640
Speaker 1: that financial fire burning right with him. This is Sugar

591
00:31:41,720 --> 00:32:00,120
Speaker 1: Moments fireplay