Fifth (and Remaining) Annual Replace

Mad Fientist: Hey what’s up everyone, it’s the Mad Fientist. Welcome to the Monetary Independence Podcast.

Sorry it’s been some time since my final episode however after being trapped in Scotland for 15 months due to the pandemic, I used to be lastly capable of make it again to the States and I simply determined to take a number of months off so I may concentrate on spending a variety of high quality time with the household that I had been lacking over the previous 12 months.

So because it’s been some time, I simply have a brief episode right this moment to get again into the swing of issues.

Should you’ve listened to the present earlier than you realize that yearly on my anniversary of leaving work I’ve posted both a podcast or an article about a few of the issues that I’ve discovered over the previous 12 months and that is really my fifth one so meaning 5 years in the past, on August 1st, was the final day I went into a traditional job and I actually can’t imagine it’s been 5 years nevertheless it has so that is my 5 12 months replace and I really assume it’s gonna be my final and I’ll clarify extra as this episode continues on however yeah, I actually don’t really feel like I’m gonna do any extra of those annual updates so moderately than ramble on let’s simply dive into every little thing that I discovered over the previous 12 months of post-FI life!

So let’s begin with the great things…so the pandemic has simply highlighted how precious having financial savings is and yeah, FI financial savings is clearly nice since you don’t must work in any respect however even some quantity of financial savings simply to provide the energy to do different issues is so vital.

So many occasions over the past 12 months, it’s been obvious that simply how precious that’s…from Jill not having to work when she felt prefer it was unsafe to take action, to probably not having to go inside wherever for any motive in any respect and having the ability to simply isolate correctly when obligatory, to simply getting back from our travels to the States and having to quarantine for 10 days within the UK…that may have been extraordinarily annoying if we have been juggling full-time jobs or had some locations we wanted to be however we have been capable of simply roll with it and be like, okay we simply have to remain hunkered down for 10 days and it’s not enjoyable nevertheless it’s not an enormous deal. So this previous 12 months, greater than some other, simply actually highlighted how precious that’s and I really simply got here throughout a quote that completely sums it up and it was on the Planing our Pennies’ weblog, and it was Mrs. PoP’s final article, and in it she stated, “There’s no draw back to having a excessive web price…it acts like a large shock absorber that smooths over life’s bumps and after some time it seems like life is a recreation and also you’ve found the mom of all cheat codes.” That quote to me is simply good as a result of the enormous shock absorber that smooths over life’s bumps, I believe is the proper option to describe that feeling of getting a pleasant chunk of financial savings within the financial institution over the past 12 months. As you realize, the world has been so unsure and every little thing’s a bit bizarre and scary and simply having that monetary peace of thoughts to know you can roll with the punches and you may get over a few of these hurdles which are surprising and it simply takes a lot stress and nervousness away that…you realize, once I was a teen, what if my automotive breaks down? I don’t need to spend $500…that may expend all my cash if I needed to repair a automotive downside or if anything broke that I wasn’t anticipating and the extra you construct up the much less careworn you get about these surprising issues that do occur in life and this previous 12 months simply highlighted how vital that’s for my psychological well-being…simply to know that there’s there’s sufficient there and you’ll cope with issues that occur and life’s bumps are going to be much more smoothed out as a result of, as Mrs. PoP stated, you’ve got this big shock absorber that may make any bumps you do face loads smoother and simpler to cope with.

Transferring on to the very best factor that occurred over the previous 12 months is that I lastly launched the album that I had been wanting to write down my whole grownup life. And this was the entire motive I wished to attain FI within the first place, really. I assumed it was my job that was getting in the way in which of me doing this and I assumed I’d have to avoid wasting up sufficient in order that I’d by no means must work once more in an effort to commit the correct time to really obtain this massive purpose of mine and it turned out that I didn’t really want to try this as a result of the factor that was holding me again all these years of making an attempt to attain that is wasn’t my job, as a result of I had loads of spare time that I may have used in the direction of working in the direction of it. It was really a variety of psychological hang-ups I had about making an attempt to pursue it, as a result of I used to be apprehensive I’d fail, and so I most likely may have really performed it once I had a job, nevertheless it did take attaining FI, after which a worldwide pandemic to lock me inside for a 12 months, to do it.

However I really did it and it’s by far the factor that I’m most pleased with and when you’ve listened to it, you realize it’s not going to win a Grammy or be on the radio or something like that nevertheless it was the factor that I actually wished to perform greater than some other and it was positively probably the most tough factor that I’ve tried to take action the truth that I used to be capable of really do it in any case these years of not having the ability to, and probably not believing I’d ever be capable to was simply an enormous private accomplishment for me and is one thing that i’m actually pleased with and I look ahead to writing the following one as a result of I’ll hopefully be in a very completely different mindset than I used to be main as much as this one and now that I do know I can do it, then i’m anticipating this subsequent one’s going to be much more enjoyable to make. So I’m actually wanting ahead to that however since this was the entire motive I wished to attain FI within the first place, that’s why I don’t assume I’m going to do any extra of those annual updates as a result of each different annual replace that I’ve given has type of been revolving round me making an attempt to get to this purpose as a result of that was like the tip of my FI journey so now that I’ve performed that, it doesn’t make sense to do any extra annual updates as a result of now it’s only a case of simply dwelling life as anybody resides life. And the cash equation is solved, and I used to be capable of accomplish the factor that I wished FI to result in so some other future updates…I simply don’t see the purpose of them often because it doesn’t have a lot to do with attaining FI in my eyes. So it is smart to simply finish on this excessive word and this would be the the ultimate annual replace.

Since I’m speaking in regards to the album, I simply need to thank all of you guys on the market who pre-ordered it and made the discharge week of the album much more thrilling and that’s since you guys helped me really get onto the Billboard charts, which is ridiculous, particularly contemplating the kind of music it’s and has no enterprise being wherever close to the charts, so simply need to thanks a lot for that as a result of it made it much more thrilling than it was to start with. And regardless that nothing actually got here from being on the charts for one week, it simply provides to the ridiculousness of my grownup life to this point. I nonetheless smile anytime that I give it some thought so thanks for the help, it actually meant loads to me. And when you haven’t checked out the album but then you possibly can go to madfientist.com/album and there’s a Spotify QR code you can open up Spotify in your cellphone and do the search-by-image characteristic after which it’ll simply pop up the album or you possibly can simply enter your e mail deal with and I’ll ship you an e mail with all of the hyperlinks to the album and likewise let you know the place I did find yourself on the chart for that incredible week method again in February. And when you’re there in Spotify or Apple Music or wherever you take heed to music, when you may comply with me there, that may be nice as a result of that’s hopefully the place much more exercise goes to be occurring over the following couple years.

So these have been the actually optimistic issues over the past years which are FIRE associated.

One of many issues that also is a problem for me that i’m working by means of is dropping cash as a motivating issue. I’ve written about this up to now, and I’ve perhaps even talked about it on podcast, however for somebody like me who has been centered on cash for so long as I can bear in mind and has been making an attempt to you realize attain FI and do all these saving objectives, cash has been an enormous motivating think about my selections. So from finding out onerous in highschool, to what I majored in in school to what jobs I selected and every little thing. And now, when cash isn’t as vital or extra money isn’t as vital…dropping that as a supply of motivation has been actually attention-grabbing and I’m nonetheless not precisely positive I’ve come to grips with it and it’s virtually made me rethink what I like to recommend for different folks as a result of I believe being motivated by incomes cash is a optimistic factor and…I simply got here throughout a quote from Warren Buffett not too long ago and it’s really a quote about how he intends to depart cash to his youngsters and the quote is, he plans to depart them sufficient cash in order that they’ll do something however not a lot that they may do nothing and one I believe that’s a good way to consider how a lot cash you allow your children nevertheless it additionally made me mirror on the place I’m at now and, like I stated, there’s no actually motivation to earn extra money and regardless that I’m extremely fortunate to be in that place, it nonetheless comes with issues as a result of technically, yeah I don’t must do something however a variety of issues in life come while you’re being compelled to do one thing perhaps you don’t precisely need to do, like as an example, going into work…yeah, it’s not nice however you get this compelled socialization that you could be not have had and also you’re interacting with folks which are outdoors your social circle which may be tough at occasions however it is usually actually rewarding and…to return to the album, proper now I may probably market it much more, which might then perhaps get me signed to an indie label, which might then open up a variety of doorways for enjoyable music festivals to carry out at, and issues like that. However since I don’t have cash motivating me to succeed in out to the labels or get myself on the market on social media or do any of those not-fun issues within the brief time period, then I’m probably lacking out on much more enjoyable in the long run so in order that Buffett quote actually made me take into consideration FIRE in a brand new mild and it made me assume perhaps the best financial savings purpose to avoid wasting sufficient so that every one your important bills are lined after which proceed working to fund your discretionary bills. So to return to the Buffett quote, that may can help you do something, since you may technically survive by leaving your job and doing no matter you wished to at that stage, so you may do something at that time nevertheless it’s probably not sufficient to can help you do nothing. Since you may get by and survive however there could be completely no enjoyable in your life, which you wouldn’t need to proceed for very lengthy, so perhaps that’s a great candy spot…to avoid wasting up sufficient so that every one your important bills are lined so you possibly can eat and you’ll have shelter and you’ll be heat and all of the issues which are important for survival, in order that then frees you as much as do something you need along with your life nevertheless it’s not sufficient that you simply get snug and also you do nothing. And which may be a great candy spot for motivation however on the flip facet, many of the actually nice advantages that I talked about initially of the episode…feeling like you possibly can deal with something that involves you and never having the stress and nervousness about future bumps within the highway and all these issues…these solely actually began to return into impact after we felt like we had greater than sufficient. So i’m not precisely positive what my conclusion is on this as a result of on one hand, I really feel like Fats FIRE is the way in which to go in within the sense that having greater than sufficient and figuring out that you simply’re gonna be okay it doesn’t matter what comes round within the subsequent few years or no matter, I believe that’s actually precious. However then then again, dropping cash as a motivation is tough as a result of then you definitely don’t must do issues and I believe perhaps you miss out on issues simply because within the brief time period, they could be a bit uncomfortable and because you don’t must do these uncomfortable issues, you don’t however then you definitely’re probably lacking out on some long-term advantages.

So I’m not precisely positive the place I fall on this however I believe that perhaps Lean FIRE is one thing to keep away from since you don’t get both in that sense so that you’re you’re not feeling like you’ve got a lot additional you can deal with no matter comes at you sooner or later years however you’ve got sufficient that you simply don’t actually have that cash motivation to proceed doing issues. So I’d have an interest to listen to your ideas on this however at the least in my actually early days fascinated by this matter, I’m considering perhaps Lean FIRE might be not the way in which to go and perhaps a type of different two bookends is a greater purpose to your FI financial savings. However once more, that is actually early days in my considering on this so i’d have an interest to listen to your opinions on it so head to madfientist.com/episode61 and depart a remark as a result of i’d have an interest to listen to what you concentrate on it.

Persevering with on from the having greater than sufficient concept, I’m making an attempt to additionally take into consideration my spending and making an attempt to deprogram my frugality in a way, as a result of as I mentioned with Ramit Sethi on the podcast interview I had with him, I do know that I’m a bit too excessive in that sense. And now that the market has recovered and funds are wanting good, I do know that I don’t must be that frugal with issues and I do know that there’s probably methods I can enhance my spending that aren’t wasteful, as a result of i’ll by no means be wasteful with cash, however at the least I can begin fascinated by methods to make use of my cash in a optimistic and useful method, in order that’s positively one thing I plan to both write about extra or perhaps get Ramit again on the present to speak about extra as a result of I i really feel like that’s a typical downside with folks like me, who’re naturally frugal or have a frugal upbringing, type of making an attempt to deprogram a few of that when it’s not essential to be that excessive in your frugality. So keep tuned for a deeper dive into that matter and if that’s one thing that you simply’re inquisitive about, subscribe to the e-mail record, which is unquestionably the easiest way to remain updated with these items now as a result of i’m posting much more sporadically than I used to up to now as a result of i’m clearly working much more on the music venture. So when you’re wanting to simply get up to date every time a brand new put up or podcast comes out, simply head to madfientist.com/recommendation and you’ll put your e mail deal with in there and also you’ll get a pdf of all the nice recommendation I’ve acquired on the Monetary Independence Podcast from my visitors over time. And if you wish to take a look at the previous 4 years of my annual updates I’ll hyperlink to all of these within the present notes of this episode so you possibly can go to madfientist.com/episode61 and from there you’ll discover all the opposite episodes and articles about every little thing that I discovered in my earlier 4 years of FI.

In order that was a brief however candy one right this moment. I’ve another interviews arising that I’ll be publishing quickly however I hope you’re all doing nicely on the market hopefully you’ve been capable of meet up along with your family and friends that you simply hadn’t seen for some time. Anyway, thanks loads for listening and I’ll see within the subsequent one!