Author Topic: FIRE movement & Financial Minimalism  (Read 14719 times)

Offline Lurker

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Re: FIRE movement & Financial Minimalism
« Reply #80 on: June 18, 2021, 12:21:08 PM »
OTOH, you can never outearn stupid spending habits, so if you don't have financial discipline you'll always have a deficit.

That's an extreme. He's saying that FIRE is the other extreme, where too much brain power is used for diminished returns. IIUC, he's advocating for a middle ground, where standard financial discipline is used, and the brain power that would have been used to manage the extremes of FIRE are utilized in other ways which can generate better returns. Essentially, he's saying you need to diversify your brain's portfolio instead of being too heavily invested in FIRE.
Failing at maintaining Lurker status.

Offline avromie7

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Re: FIRE movement & Financial Minimalism
« Reply #81 on: June 18, 2021, 12:44:35 PM »
That's an extreme. He's saying that FIRE is the other extreme, where too much brain power is used for diminished returns. IIUC, he's advocating for a middle ground, where standard financial discipline is used, and the brain power that would have been used to manage the extremes of FIRE are utilized in other ways which can generate better returns. Essentially, he's saying you need to diversify your brain's portfolio instead of being too heavily invested in FIRE.
It may be an extreme, but it's fairly common.
I wonder what people who type "u" instead of "you" do with all their free time.

Offline ushdadude

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Re: FIRE movement & Financial Minimalism
« Reply #82 on: June 18, 2021, 12:49:00 PM »
::)

I guess you don't follow Ritholtz.

What he's saying is simple, use your brain and energy to generate more income/wealth rather than find ways to save every penny. There is a diminishing rate of return on the savings once you reach a certain level.
i don't follow any financial gurus on twitter. i don't actually follow anyone on twitter. i don't actually have twitter.
i agree that extremes in either direction can be bad


Offline ExGingi

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Re: FIRE movement & Financial Minimalism
« Reply #83 on: June 18, 2021, 12:55:00 PM »
i don't follow any financial gurus on twitter. i don't actually follow anyone on twitter. i don't actually have twitter.
i agree that extremes in either direction can be bad

Twitter isn't the place to follow Ritholtz.

He's a common guest (and host) on Bloomberg. He has a blog. I wouldn't consider him a financial guru, he's someone with a lot of clarity and experience. I put him, David Rosenberg, Mohammed El-Arian in a similar category of people worth listening to, with lots of experience, and no specific bias (though everyone has some bias). There are probably a handful of others that I would put in a similar caliber. These guys also tend to bring the views of other people that might be worth listening to.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline Lurker

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Re: FIRE movement & Financial Minimalism
« Reply #84 on: June 18, 2021, 01:16:38 PM »
It may be an extreme, but it's fairly common.

As a follower of DR, I think you can agree that there are less extreme solutions than FIRE. The answer to extremism doesn't need to be opposite extremism. The answer is usually moderation.
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Offline ushdadude

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Re: FIRE movement & Financial Minimalism
« Reply #85 on: June 18, 2021, 01:24:44 PM »
Twitter isn't the place to follow Ritholtz.

He's a common guest (and host) on Bloomberg. He has a blog. I wouldn't consider him a financial guru, he's someone with a lot of clarity and experience. I put him, David Rosenberg, Mohammed El-Arian in a similar category of people worth listening to, with lots of experience, and no specific bias (though everyone has some bias). There are probably a handful of others that I would put in a similar caliber. These guys also tend to bring the views of other people that might be worth listening to.
Talking about using limited brain capacity, I don't have patience for all that. I keep it simple. Invest in targeted retirement funds and work on making (and saving) more money.Maybe one day I'll branch out to other low cost index funds. And if I have even more time (and capital) I'll look into alternative investments.

Offline ExGingi

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Re: FIRE movement & Financial Minimalism
« Reply #86 on: June 18, 2021, 02:47:32 PM »
Talking about using limited brain capacity, I don't have patience for all that. I keep it simple. Invest in targeted retirement funds and work on making (and saving) more money.Maybe one day I'll branch out to other low cost index funds. And if I have even more time (and capital) I'll look into alternative investments.

Excellent.

So what are you doing here discussing finance and investments? Just stick to what you are doing and use your time and energy in doing what you do best.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline Euclid

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Re: FIRE movement & Financial Minimalism
« Reply #87 on: June 18, 2021, 02:54:53 PM »
So what are you doing here discussing finance and investments? Just stick to what you are doing and use your time and energy in doing what you do best.
fire

Offline ushdadude

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Re: FIRE movement & Financial Minimalism
« Reply #88 on: June 18, 2021, 04:01:46 PM »
Excellent.

So what are you doing here discussing finance and investments? Just stick to what you are doing and use your time and energy in doing what you do best.
I'm trying to simplify other people's lives as well. Spreading the light

Offline ushdadude

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Re: FIRE movement & Financial Minimalism
« Reply #89 on: June 18, 2021, 04:43:11 PM »
fire
Not specifically. But it would be nice to work because I want to, not because I have to.

Offline Saver2000

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Re: FIRE movement & Financial Minimalism
« Reply #90 on: June 18, 2021, 04:43:41 PM »
Talking about using limited brain capacity, I don't have patience for all that. I keep it simple. Invest in targeted retirement funds and work on making (and saving) more money.Maybe one day I'll branch out to other low cost index funds. And if I have even more time (and capital) I'll look into alternative investments.

... But then you won't accomplish FIRE.

What you're doing is the traditional method. Has nothing do to with FIRE.

Offline Euclid

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Re: FIRE movement & Financial Minimalism
« Reply #91 on: June 18, 2021, 04:55:34 PM »
Not specifically. But it would be nice to work because I want to, not because I have to.
lol I was just making a joke - @ExGingi was spitting fire in that post... ;)

Offline ushdadude

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Re: FIRE movement & Financial Minimalism
« Reply #92 on: June 18, 2021, 05:19:10 PM »
... But then you won't accomplish FIRE.

What you're doing is the traditional method. Has nothing do to with FIRE.
I'm ok with FI


Offline Saver2000

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Re: FIRE movement & Financial Minimalism
« Reply #93 on: June 20, 2021, 08:26:20 AM »
I'm ok with FI



Excellent.

So what are you doing here discussing finance and investments? Just stick to what you are doing and use your time and energy in doing what you do best.

Offline ushdadude

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Re: FIRE movement & Financial Minimalism
« Reply #94 on: June 20, 2021, 08:54:03 AM »



Thinking of FI is closer to FIRE than most people here. If you read up on fire, it's more about savings than investing. Talking about whole life and actively managed portfolios is pretty far from fire.

Offline ari3

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Re: FIRE movement & Financial Minimalism
« Reply #95 on: June 20, 2021, 03:57:32 PM »
::)

I guess you don't follow Ritholtz.

What he's saying is simple, use your brain and energy to generate more income/wealth rather than find ways to save every penny. There is a diminishing rate of return on the savings once you reach a certain level.
the same applies to some (a minority) of the deals or tricks discussed on this site and others. spending a half hour to jump through hoops tp save $5 is not worth it. Better spend the time trying to make more money. Unless you are doing it for the thrill not the money.

Offline farmbochur

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Re: FIRE movement & Financial Minimalism
« Reply #96 on: June 20, 2021, 06:05:07 PM »


https://twitter.com/ritholtz/status/1405865379231158277?s=21

Applications like Mint & Personal Capital track expenses to the penny automatically. No need to waste brain capacity on that.

Coupon cutting or other tedious methods to cut expenses aren't embraced by all who aspire FIRE. Those with highly marketable skills tend to focus on improving income / side hustles while others may focus on cutting expenses.

Both are valuable on the quest to FIRE.
Risk is opportunity

Offline Buruch

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Re: FIRE movement & Financial Minimalism
« Reply #97 on: August 22, 2022, 05:14:12 AM »
Reactivating because I think it's an important topic.
Even if someone doesn't get there all the way to retire by 40 or w/e, halfway to FIRE is way better than the average family is doing.
I think now that remote work has become so much more common, and free/cheap courses available to obtain qualification for decent jobs that don't require college degrees even, it's a lot more practical for a frum woman to have solid income too without having to drop it as soon as she gets close to having her first baby.
Let's say 2 spouses starting off earning 40-60k each, and living off 40k, can put away serious money for a good few years before the outrageous tuition bills come in. By that time salaries should be increasing enough to cover tuition even if they can't save as much. Investments should be approaching critical mass where even if they're not adding to the pile, it can grow to FI numbers in 10-15 years (coast FI is the term for that).
If they move to cheap places and/or with vouchers, they can accelerate that. It's all about priorities, and getting the big decisions right- not making yourself crazy over every dollar.

Offline chevron

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Re: FIRE movement & Financial Minimalism
« Reply #98 on: August 24, 2022, 02:23:43 AM »
Eh I mean it wouldn't work, you'll have siblings who needs help, tzedaka etc even being single hey I Wana travel now not when my knees are shot

Offline Buruch

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Re: FIRE movement & Financial Minimalism
« Reply #99 on: August 24, 2022, 02:40:49 AM »
Eh I mean it wouldn't work, you'll have siblings who needs help, tzedaka etc even being single hey I Wana travel now not when my knees are shot
Of course maaser is part of the calculation, and traveling on miles is a thing  ;). Obviously for some people there will be circumstances that prevent them from doing it, but it really is an option now for many more frum people if they set their mind to it - not just for extreme outliers.