Category Archives: Financial Independence

I like the idea of financial independence, but there are parts of the FIRE movement I truly find problematic.

I've never really been the type of person to embrace fads or trends. When my childhood friends were doing everything humanly possible to poof up their hair back in the '80s, I was pulling mine into a ponytail and calling it a day. And when the grunge movement took over in the '90s, I refused to spend my after-school hours listening to depressing music or limit my wardrobe to ripped jeans and oversized flannels.

Similarly, in the context of financial matters, I've never been inclined to jump on the latest trend. When meme stocks were all the rage, I stuck with the companies I knew and trusted. And when everyone I knew was buying crypto, I stayed away because it wasn't in my comfort zone.

Image source: Getty Images.

Along these lines, I've done my fair share of reading about the FIRE movement in the context of retirement planning. Short for Financial Independence, Retire Early, the FIRE movement encourages people to live well below their means, save the bulk of their income, and attain financial security at a young enough age to stop working well ahead of their peers.

While I can see why the FIRE movement appeals to some people, it's something I rejected from the start. Here's why -- and what I'm doing to prepare for retirement instead.

I've always been a pretty aggressive saver, even back when my only source of income was the $5 per hour I earned as a babysitter during my high school years. At the same time, I'm a big proponent of enjoying life. And I feel that the FIRE movement would impede my ability to do that.

I won't say how much of my income I save for retirement now, but I'll acknowledge that it's above the 15% to 20% many financial experts recommend. But some FIRE movement folks will tell you that you should be saving 50% of your income, 70%, or even more. Frankly, I can't see how that would be possible without making myself miserable.

Maybe it's also the fact that I have three kids, and that's an expense right there. But even if that weren't the case, I can't see how spending just 30% of my paycheck would make for an enjoyable existence. It would probably mean living in cramped quarters, never taking vacations, and driving a car with taped-on windows (after driving the same car for 17 years, I almost got to that point, but I upgraded just in time). I just don't see that as a healthy or reasonable way to live.

A big part of the reason I've never been into the FIRE movement is that I don't want to retire early. Part of me, in fact, never really wants to retire at all.

Now the part of the movement I am a fan of is the financial independence aspect. The idea of not having to rely on a job for income sounds nice in theory. But I'm not willing to sacrifice my family's happiness to get to that point in my 40s.

None of us have a crystal ball, and I unfortunately know too many people who have passed away at younger ages than what's the norm. I take comfort in the fact that some of those people enjoyed life to the fullest while they were still on this planet. And I'm not going to sacrifice near-term joy when I have no idea what the future holds.

Of course, I'm not going to avoid saving for retirement because there's no guarantee of living to a certain age, either. There needs to be a balance. To me, it's somewhere in between saving more than 15% to 20% of my income, but definitely not 50%.

It's also worth noting that it's more than possible to pull off early retirement without setting aside 50% of your income or more each year. If you start early and invest well, you may find that you can retire in your 50s on relatively modest monthly retirement plan contributions.

But that strategy won't work if you want to retire in your 30s or 40s. To do that, you probably need to take frugal living to a pretty big extreme.

I respect people who have the dedication to do that. I'm just not one of them.

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Here's Why I Rejected the FIRE Movement -- and How I'm Approaching Retirement Planning Instead - The Motley Fool

July 4 marked the United States 248th Independence Day. While the holiday brings to mind fireworks, barbecues, and family gatherings, it is also a reminder of the principles of independence, self-reliance, and freedom that have shaped the United States. I believe in the power of dividend growth investing to build rising passive income and asset-reliant financial independence over the long-run, explains Ben Reynolds, editor of Sure Dividend.

The concept of independence extends beyond national sovereignty to individual autonomy. And individual autonomy is all-but-impossible without financial independence.

(Editors Note:Ben Reynolds is speaking at thePowerful Investing & Trading Strategies Virtual Expo, which runs Aug. 20-22, 2024.Click HEREto register)

Financial independence, much like the independence celebrated on July 4, represents freedom from external control (to a large degree) and the ability to make choices without undue constraints. There are two forms of financial independence: Self-reliance and asset reliance.

1. Self-reliant financial independence is when you can support yourself through your work. You are able to trade your time and energy to create economic value for yourself.

2. Asset-reliant financial independence is when the passive income from your assets exceeds your expenses. You no longer have to trade your time and energy to support yourself.

Regarding the latter, dividend growth investing can help you achieve it and it offers several advantages:

Financial independence is one aspect of a lifelong pursuit of true personal freedom. To practice dividend growth investing in the pursuit or maintenance of financial independence is to honor the principles of freedom and self-reliance that are at the core of what the United States represents.

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(07/10/24) Dividends: A Tool to Help You Achieve Financial Independence - Moneyshow.com

I have been crocheting since I was in the second grade. I learned it from my grandmother. I remember during family gatherings, all the women were always working on a piece, and they exchanged ideas and techniques meanwhile drinking coffee and gossiping at the same time. It taught me from a very young age to always strive to be productive, said Fatima Babat, a 58-year-old woman of Circassian ethnic origin from Quneitra in southern Syria.

Over 12 years of protracted crisis has left close to 90 percent of the population in Syria living below the poverty line. The Syrian economy is subject to repeated shocks, increasing humanitarian needs reaching an all-time high and worryingly limited livelihood opportunities. According to the UN, about 70 percent of the total population are in need of humanitarian assistance this year. Unfortunately, women bear a disproportionate burden of hardships.

Fatima was operating from her home and selling her products to a wide network of neighbours, friends, and family, in addition to a few retailers and shop owners in Damascus and participated in many bazars and markets. During the crisis, I had to flee my home several times for months at a time. Every time we would come back to an empty and looted home. My husband passed away a few years ago, last time we fled our home together and I came back alone to an empty home. Empty in every sense of the word. I had an electric knitting machine that was looted the first time we fled, said Fatima as she tried to hide her tears.

The participation of women in the labour force in Syria remains alarmingly low, with only 17 percent engaged in formal employment compared to 83 percent of men[1]. This stark disparity is fuelled by a lack of economic opportunities and limited access to financing, perpetuating a distressing cycle of poverty and gender inequality. Furthermore, women encounter significant societal and cultural barriers that restrict their pursuit of entrepreneurial ventures.

I got married later in life when I was 36 and never had children. I honestly wish I never married because although my late husband, God bless his soul was an amazing man, I had to deal with difficult in laws who were very critical of my work outside the house, said Fatima.

Fatima was studying for her ninth-grade exams when she had an accident with a kerosene burner and was hospitalised with severe burns. I had to undergo several operations. This is the beautified version of me after many plastic surgeries she said smiling sarcastically referring to her scars. Because of that I failed my exams that year and I had to settle for technical school where I graduated as an Assistant Electrical Engineer. Although it was not my first choice, I made the best of it and till today I am still using my knowledge to fix home appliances by myself. At some point I even used the copper wiring from motors that I could not fix to make some jewellery and small artifacts, she added.

After graduation, Fatima started teaching first grade in an elementary school. She also taught literacy classes after school. My students ranged from 12- to 50-year-old women who were eager to learn. I still remember a lot of my students from that time. I saw some potential in some of them and I volunteered to stay for an extra hour after class to teach them how to crochet, said Fatima.

Fatima was selected from more than 700 women who applied to be part of the Path to Empowerment project. With generous funding from the Government of Japan, the United Nations Development Programme (UNDP) focused on enhancing economic empowerment through improved access to financial resources and markets and securing decent working conditions for women entrepreneurs in Qunitera. Fatima underwent entrepreneurship skills training with 70 other selected women that enabled them to develop their business plans. After which, Fatima submitted her business plan and estimated budget, and she was selected with 50 other women to receive seed funding for their projects.

I learned how to properly calculate cost and profit margins for different products to fit different budgets so I can reach as many customers as possible, said Fatima. I always make sure I have something for everyone, no matter what their budget is, she added.

One time I was riding the bus when I recognised one of my pieces worn by a young lady. I asked her where she got it from and for how much and that is how I discovered that the retailer who was selling my products for a 10 percent fee was scamming me and selling them for double what we agreed on exclaimed Fatima recalling what she learned from the training. Now I have the knowledge I need not fall for that again, she added.

Fatima is currently in the process of renting a small shop where she will sell her products and she will also use the space to train girls who are interested in learning crochet. Unfortunately, girls in my area drop out of school at a very young age and rarely do they learn a craft. They end up either married or doing small jobs cleaning houses and visiting neighbours and gossiping the rest of their time, she said.

My advice to young girls, is not just passively stay still, make the best of your time and if you love doing something, follow your passion and do not listen to the critical voices around you. Move, be productive, make your own path to financial independence. There is nothing more powerful than a financially independent woman, concluded Fatima.

By Asma Nashawati, Communications Associate, UNDP Syria

Link:

Weaving Hope and Financial Independence: Fatima's Path to Empowerment - United Nations Development Programme

The Simple Path to Wealth by J.L. Collins has become a cornerstone of personal finance literature, mainly celebrated for its straightforward, no-nonsense approach to achieving financial independence.

J.L. Collins, originally a blogger who shared his insights on financial independence, has captured a broad audience with clear, concise advice. The book distills complex financial strategies into practical steps aimed at simplifying your financial journey to creating wealth, thus reducing stress and making the goal of wealth more attainable.

What is The Simple Path to Wealth formula? Heres the simple formula: Spend less than you earninvest the surplusavoid debt. Stop thinking about what your money can buy. Please start thinking about what your money can earn, then think about what it can gain through compounding growth.

The main steps outlined in the book can be summarized as follows:

By following these steps, according to Collins, individuals can simplify their financial lives, reduce stress, and move steadily towards wealth and economic independence.

Lets take a closer look at each of the steps he advises.

At the core of Collinss philosophy is frugalitya misunderstood concept. As Collins describes, Frugality isnt about pinching pennies or denying oneself joy; instead, its about spending less than one earns and avoiding unnecessary debt.

This approach is foundational because it frees up capital to invest and grow. Through practical examples, Collins demonstrates how adopting a frugal lifestyle is not merely a temporary sacrifice but a decisive step toward accumulating lasting wealth.

One of the pivotal recommendations in The Simple Path to Wealth is the investment in low-cost index funds, particularly those that track the entire US stock market, such as Vanguards VTSAX. Collins advocates for these investments due to their broad diversification, low costs, and the passive investment strategy they enable.

He emphasizes that these funds are a critical component of a long-term wealth-building strategy because they offer exposure to the economys growth without the high fees and complexities of active fund management.

Collins is decidedly against frequent trading and market timing. He argues that these practices incur higher transaction fees and often result in suboptimal investment returns due to the difficulty of accurately predicting market movements.

Instead, he champions a buy-and-hold strategy, supported by numerous studies and financial experts, which suggests that long-term investments in the market tend to yield a favorable return, primarily when held through market ups and downs.

Another critical aspect of Collinss strategy is the effective use of tax-advantaged accounts such as 401(k)s and IRAs. He educates readers on how these accounts shield investments from taxes upon deposit or withdrawal, maximizing the money that can grow and compound over time.

Collins provides actionable advice on leveraging these accounts to build a substantial nest egg, underscoring the importance of understanding ones options and the rules governing these financial instruments.

Collins also advocates for maintaining a simple investment portfolio that reduces the need for frequent management and decision-making. He suggests setting a specific allocation between stocks and bonds and sticking to it with periodic rebalancing.

According to Collins, this simplicity makes managing investments less stressful and helps maintain a clear path toward financial goals, minimizing the risks of emotional investing and market timing mistakes.

Much of the book discusses the emotional and psychological challenges of investing, mainly through volatile markets. Collins advises to stay the coursea refrain encouraging investors to keep contributing to their investments consistently, irrespective of market conditions.

He illustrates how those who stay invested during downturns are better positioned to benefit from the eventual market recoveries, thus building wealth steadily over time.

The ultimate goal of following Collinss advice is to achieve financial independencehaving enough assets to generate income indefinitely to cover ones living expenses. Collins emphasizes the concept of enough, encouraging readers to define what financial independence means for them and to pursue it through the disciplined application of his principles.

This part of the journey is highly personal but universally rewarding, as it offers freedom from financial constraints and the possibility of retiring early.

The Simple Path to Wealth by J.L. Collins offers actionable, sensible advice that can be tailored to various financial situations. While the books approach is straightforward, it may not suit everyones circumstances or risk tolerance.

However, its principles are widely applicable and offer a foundation for anyone looking to improve their financial health. Whether youre a novice investor or someone looking to refine your financial strategy, Collinss book is a valuable resource that provides clarity and direction on the journey to financial independence.

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The Simple Path to Wealth - New Trader U

Bitcoin Halving, a much-anticipated event in the crypto ecosystem, is being monitored closely by crypto enthusiasts across the globe as the price of the super volatile currency Bitcoin (BTC) is expected to set new benchmarks.

A short history of halving has shown us that the price of BTC and other cryptocurrencies have grown exponentially in a short time post the halving event. Trade analysts say that the halving events have the potential to disrupt markets, surge or plunge digital currencies and bring a shift in the economics of the crypto ecosystem.

In this article, we look at the history of halving and how the events unfolded to take BTC to newer heights through bullish sentiments and innovations.

Halving is a programmed event where the reward for mining BTC gets slashed by 50% for every new block created by the miners. As per the algorithm developed by makers of BTC and blockchain technology, a total of 21 million BTCs could ever be generated and the fee for generating BTCs and creating blocks gets reduced by %)% every time a total of 2,10,000 blocks are formed, which usually takes four years. Such a mechanism was introduced to remain intact the scarce value of BTC through controlled demand and supply.

Since its launch in 2009, Bitcoin has experienced three halving events, occurring approximately every four years. The first was in 2012, followed by 2016, 2020, and the upcoming in 2024.

The first Bitcoin halving took place after the network had confirmed 210,000 blocks, resulting in miners rewards being reduced from 50 to 25 BTC per block. At the moment of the halving, Bitcoin was priced at approximately $12 in the market. Following the halving, a bullish trend emerged, propelling Bitcoins price to $1,000 by the subsequent year.

The second Bitcoin halving occurred on July 9, 2016, at block 420,000, reducing the block reward to 12.5 BTC, coinciding with a market price of around $650. Following this event, Bitcoin witnessed another significant surge in value, with its price soaring to almost $20,000 within the subsequent 18 months, marking an extraordinary increase of 3,000%.

Following the third Bitcoin halving on May 11, 2020, occurring at block 630,000 and reducing the block reward to 6.25 BTC, the cryptocurrency demonstrated remarkable resilience amidst global economic uncertainty, with its price experiencing a surge. By April 2021, Bitcoin surpassed $69,000, reflecting an impressive 690% increase from its pre-halving value, which was approximately $9,000.

The upcoming fourth halving of Bitcoin is expected to occur on 19th April 2024, marked by the 840,000th block and a reward reduced to 3.125 BTC. At the current trading price of approximately $70,000, there is anticipation for a substantial surge in value post-halving.

Although the exact price surge is challenging to predict, historical patterns suggest a significant upward momentum, potentially propelling Bitcoin to new highs, with projections ranging from surpassing $100,000 to reaching $200,000 in the subsequent years, fueled by increasing institutional adoption and mainstream acceptance.

Based on the historical data available, there appears to be a diminishing rate of increase in Bitcoins price following each halving event, with the growth rate reducing by a factor of approximately 3.5 to 3.9 compared to the previous halving cycle.

Applying this observed pattern, one might infer that for the 2024 halving, Bitcoins price could potentially experience an uptick of around 200% from its trough.

However, its essential to recognize that past performance is not indicative of future results, and various factors can influence Bitcoins price dynamics, including market sentiment, adoption trends, regulatory developments, and macroeconomic conditions.

Presently, the circulating supply of Bitcoins exceeds 19 million, leaving less than 2 million BTC to be mined before reaching the maximum cap of 21 million. Nevertheless, due to the mechanism of Bitcoin halving, the process of mining these remaining 2 million Bitcoins will extend over approximately a century.

The final Bitcoin halving is projected to occur in the year 2140, coinciding with the completion of the mining of the entire 21 million BTC supply.

As we near Bitcoins fourth halving, the crypto community is on the edge, eagerly waiting for the changes it will bring. With each halving, Bitcoin solidifies its status as the digital equivalent of gold, its limited supply mirroring that of precious metals.

History shows us that after these events, Bitcoin often experiences dramatic price increases, challenging traditional market rules. But beyond its financial gains, Bitcoin represents something more profound: a decentralized ideal, offering financial freedom in an uncertain world.

As we look ahead to the post-2024 halving landscape, one thing is clear: Bitcoins story is just beginning. Its a testament to human innovation, a revolutionary force capable of reshaping economies, empowering individuals, and transforming our understanding of money itself.

Read more from the original source:

Bitcoin Halving: A History of Economics Shift & Financial Independence - Crypto Times

Amid reports that more than half of adults in the UK claim their financial situation has worsened in the last year, the concept of financial freedom has soared with 91.8 million views on TikTok.1,2With this in mind, the investment experts atOxford Capitalsurveyed 1,000 UK residents to determinewhat steps adults in the UK are taking to achieve financial freedom.

Key findings:

Q1:What steps do you take or plan to take to attain financial independence?

Oxford Capitalcan reveal that over half of UK adults surveyed (56.6%) have or are planning to open asavings accountin a bid to attain financial freedom.By regularly depositing money into a savings account, even modest savings can grow through compound interest, helping to achieve long-term financial goals such as buying a home, or funding retirement. This relatively low risk method of attaining financial freedom is most opted for by residents aged over 55 (15.9%) followed by those aged between 25 and 35 (12.4%).

Whilst it is the least popular method amongst the UK adults surveyed, one in three UK adults have started or are planning tostart their own businessto achieve financial freedom (31.6%). Building wealth and achieving financial freedom often requires long-term planning and discipline and whilst entrepreneurship might involve a higher level of risk, it also offers a degree of control and the potential for greater rewards if successful.

A similar level of UK adults areseeking professional financial advice(37.7%) orinvesting in stocks and shares(38.7%) to attain financial independence. Its always key to consult an expert before making significant financial decisions, as they can provide insights and guidance tailored to your specific financial situation, goals, and risk tolerance.

Whilst the number of Brits investing has fallen due to economic uncertainty,stocks and shareshave historically provided higher returns compared to other asset classes over the long term. Investing in well-established companies or growth-oriented stocks can offer the potential for significant capital appreciation and be part of a long-term plan towards financial freedom.

The UK regions investing the most in financial freedom

Oxford Capitalfound thatGreater Londonresidents are the most prepared to become financially free, with 10.4% of respondents taking steps, planning to or having already achieved financial freedom. 80%of Greater London residents that are taking steps to become financially free chosesaving accountsas their preferred method, followed by buildingmultiple income streams,tied with opening anISAaccount (72%).

Residents living in theSouth Eastrank second in terms of preparing for financial freedom (10.3%).Savings accountsare also the most popular method for financial independence in the South East, being the preferred method for 75% of those taking steps, planning to or having already achieved financial freedom. Over a third (36%) currently or aim tostart their own business.

Ranking third is theNorth West, where one in 12 are taking steps, planning to or have already achieved financial freedom (8%).Savings accountscontinue to be popular in this region, with over two-thirds opting for this lower-risk method (67%). More than half (57%) are considering or have already opened anISA account.

How much are UK adults investing to become financially free?

The survey highlights that the majority of UK residents surveyed, over a third, invest between1-200per month toward their financial freedom (33.20%). This is followed by more than one in five residents who put away between 201-500 per month (21.20%).

Almost a fifth of UK residentsdont or are unable to put away any moneyeach month (19.20%), likely due to economic uncertainty, wage stagnation and the high cost of living in the UK. One in four adults who worry that they arent saving enough every month to reach their financial targets, with some suspecting that theyd need to earn 60,000 a year to avoid worrying about money all together.3

A combined 7% of respondents are investing between2,001-5,000per month toward financial freedom. To be able to invest at the higher end of this bracket, Brits would need to earn upwards of 90,000 per year, placing them in the top 5% of earners in the UK.

Mark Bower-Easton, Head of Distribution atOxford Capital, shares his advice on achieving financial freedom:

Whilst financial freedom is a broad concept, for many adults in the UK financial freedom refers to being debt free, being able to pay off the mortgage and to be able to confidently cover unexpected costs. For others, its feeling in control of their finances, being able to save money, having disposable income available at the end of the month and not worrying about when payday is. Our survey has highlighted that over a third of Brits are already planning to or have started their own business to achieve these goals.

Are there any unmet needs or opportunities in your local area? Are there specific challenges in your community that you frequently encounter or hear others talking about? These could be opportunities for innovative solutions or services that could form the basis of a successful business venture. This step ensures that the business has a solid foundation and a viable market to tap into.

Many councils in the UK offer free business advice, workshops, and resources for aspiring entrepreneurs, providing valuable support in areas such as business planning, financing options, and legal requirements. Additionally, networking with local business owners and industry professionals can offer invaluable insights and potential partnerships. By leveraging these resources and connections, individuals can strengthen their business acumen and increase the chances of securing financial independence.

We hope you find this release useful. If you do end up using it, we would appreciate a link tohttps://oxcp.com/. Crediting this piece means we can send you future releases.

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Financial expert comments on Brits methods of obtaining financial freedom - IFA Magazine

Women have revealed online why they chose financial security over love.

In a post shared to the AskWomen community on Reddit, one person asked women who have chosen financial security over love how their personal lives have turned out - and the outpouring of responses varied. Many women, primarily those in heterosexual relationships, noted that their choices were rooted in prioritising their wants and needs. Instead of being beholden to the choices of whomever they were dating, they could focus on the future they envisioned for themselves.

I focused on my career after leaving an abusive ex, one woman wrote. After a few job hops, I finally hit six figures and could afford therapy and hobbies to better myself. I fell into the FIRE movement (financial independence/retire early) and finally felt financially safe/confident to live a normal life and love myself. I fell in love with a normal guy and married.

She added that having independent financial security enabled her to lead her life on her terms, rather than someone elses.

A man is not a plan, she continued. Anything else can hold you hostage. Im sure there are exceptions, but be wary of financial abuse. Abusive relationships can come in many shapes and forms, including but not limited to financial, sexual, physical, emotional, spiritual, etc. Dont ever let a man or anyone limit your freedom and hold you hostage. Always have a backup plan and pin money!

Others noted that leaving was the best thing for them in the long run, even if it was heartbreaking at the moment. By learning how to be independent and provide for themselves, they found that they were more likely to attract a partner that aligned with what they truly wanted.

I left a long-term relationship with less than $20 to my name after I paid the movers, rent, and deposit in my new place, another woman commented. My life started all over again. I was single for a while, and in that time I managed to pay off all of my student loans in a few years.

Story continues

She continued: I was able to save some money. I was able to spoil myself and get a completely new wardrobe over time, including my shoes. I had money to pick up hobbies. I learned to be comfortable being single. It helped me become a full, happy person. Eventually, I met my current partner, and he added to my happiness. But I know if it ever doesnt work out, not only am I going to do well, but Im going to thrive. I already did it once. I can do it again.

The majority of the women advised focusing on ones education and career to attain financial and emotional independence from men. Following the age-old saying, Choose yourself, and the rest will follow, women stressed to their younger counterparts that prioritising overall self-improvement is the key to finding the life and love they want.

I was in a situation last year where the only option to continue the relationship was to end ongoing long distance and move to the middle of nowhere with a boyfriend who was struggling financially, someone admitted. He had issues with debt, paying rent, and jumping into a failed business.

She continued: I made a good salary, was moving up in my career, and was very fiscally responsible. I ultimately decided not to move and ended the relationship. I didnt see myself there, and as the relationship was serious, it ultimately wouldve meant carrying a lot of financial weight, which becomes harder with marriage and kids.

According to a 2023 Credit Karma survey, around 32 per cent of millennials and Generation Zers have ended relationships over financial issues, with more than half of Gen Z and millennials reporting consistent arguments over finances with their partners. Research indicates that one in four Americans view money as the greatest challenge in their relationship, with many citing the subject as a frequent topic brought up during arguments.

Experts advise those who want to maintain their relationships amid frequent arguments over finances to take a step back from their situation and find a way to bridge the gap between the perspectives of both partners. By operating as a team, conflicts over something as important as finances can solved much more easily and efficiently.

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Women reveal why they chose financial security over love - Yahoo News UK

Before his daughter, Faith, was born in 2010, Jim White was mostly content with his job as an engineering manager at an IT firm in Ohio. He made decent money, owned a home and a rental property with his wife, Lisa, and even enjoyed the work he was doing.

But the week off of work he spent with his newborn daughter crystallized something for White that had been nagging at him for while: He realized as his brief paternity leave ended that he didnt want to miss the time with her that the standard American corporate job all too often encroaches on. The traditional 9-to-5 made him feel trapped, as if his life was just passing him by. He didnt want to spend his best days behind a desk.

It was also around this time he first discovered the FIREfinancial independence, retire earlycommunity online, which helped him realize that his dream of leaving the corporate world decades sooner than the norm wasnt so far-fetched. After extensive conversations with his wife about the possibility of a different kind of life, the Whites soon began saving 60% of their income and planning for an early departure from the workforce.

It took eight years, but White, then 43, was able to pull the plug on his corporate career at the end of 2018. The family sold most of their belongings, their home, and their car, and moved to Panama in 2019. They had fallen in love with the country after a previous vacation there, and spent their days hiking, exploring, and simply spending time together. White had never been happier.

It was beautiful. We were able to spend every day outside, we didnt have a car, it was all those little things, White, now 48, tells Fortune. I got to feel like that was home.

Living costs were lowerthough the family scaled up housing costs to live in a resort community on a golf course for $2,100 a monthand the quality of life was unparalleled, White says. He found a welcoming expat community, walked most places, and enjoyed the crazy cheap local produce. The Whites homeschooled Faith, and spent almost three years just enjoying the quality time together that had first inspired Whites FIRE journey.

Eventually, though, the Whites decided they wanted to be closer to family again, and moved back to Ohio in 2022, taking over an apartment lease for some expat friends they met in Panama. Soon restless again, the trio decided to embark on a nine-month RV trip around the country, with different legs taking them first to Texas, then the Southeast, and finally the West.

This is the second time weve gotten rid of everything, says White. Though not every day is a vacationthe family has come to realize they are not long-term RV people, given the space constraintshe has no regrets. This has been the greatest thing.

Whites life may sound idyllic, but, of course, very few people are able to retire early. Many members of the FIRE community are in high-paying fields like tech, medicine, finance, or lawsome of the wealthiest workers in the U.S. White had the added bonus of living in Ohio, which has a relatively low cost of living, and both he and his spouse were committed to living frugally.

White began his career working part-time at an IT firm in the 1990s for $25,000 per year. He stayed at that company his entire career, working his way up to engineering manager. The salary wasnt bad for the time, he says, especially considering he was still wrapping up college when he landed the job. It also helped him with a different financial undertaking: Paying off the $30,000 in credit card debt he had accrued in school. I regret the debt, he says. But at the same time, it was a lesson and I learned from it.

White also benefitted from some smart real estate plays. He bought an investment property in the early 2000s, which he rented rented out for a few years and then sold in 2018 (that said, White has also catalogued the downsides of owning rental propertiesits not all profit). They also sold their primary residence before their move to Panama.

Still, the family made plenty of sacrifices and relied on fairly standard strategies to accrue wealth (most of his investments, for example, are in low-cost index funds). He and his wife have always been frugal, he says. That helped when they had to shed most of their belongings during their first move to Panama.

Theres only so much you can cut back on. And you get to a point where youre as optimized as you can be, for the most part, he says. We spent our time putting 60% of our money away and waiting to reach our number. Its kind of frustrating, because you know your end goal but there isnt a feasible way to get there earlier. Its not an easy thing to do, but the end can be so rewarding.

White has tracked his FIRE journey on his blog, Route to Retire, since 2015. There, he displays his net worthcurrently over $1.6 millionbudget, and the ups and downs of early retiree life for all to see.

He has no plans to go back to the traditional corporate world. If he ever needs a jobmostly to have something to do, not just to earn moneyhe said he could go part-time at Costco or Walmartsomewhere fun.

In the meantime, he plans to keep trying different thingsthe best gift early retirement has given him.

I decided randomly to climb an active volcano in Panama. That was so out of my realm, but I got it done, he says. I used to think people who ran marathons was crazy, but theres such a sense of accomplishment, its wonderful. You have to try it. Youre not going to love everything, but its the only way to enjoy life and find what you do love.

Fortune is interviewing retirees about life after leaving the workforce. If youre interested in sharing your story, email senior writer Alicia Adamczyk atalicia.adamczyk@fortune.com.

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This 48-year-old dad retired early to move to Panama with his family: 'This has been the greatest thing' - Fortune