Hard to figure out where to put this one.
Psychologically For some people, retiring early is no big deal; for others it is a shock. Moving from a situation where someone else tells you what to do for 40-60 hours a week to one where you have unlimited free time can be unnerving. Some FIREes revel in this freedom and have no trouble enjoying their new-found independence completely. Others feel some unease and might impose some structure in their lives through volunteer activities, sports activities like golf or other activities that require a specific commitment. Many people have a settling in period that may take 3 months to a year. After a while, though, most FIREes can't imagine living any other way.
Culture. Retiring early (especially very early) is not an accepted societal norm. Get ready to have people think you are 1) actually unemployed but embarrassed to say so, 2) a wasteful layabout, living off the hard work of others (they don't believe you could be FI) or 3) an ingrate not doing his/her fair share (they may believe you are FI, but RE is unacceptable). There are some people who will believe you, support you and may not even utter those very annoying words "You are too young to be retired". These people are your friends.
Under culture also comes your relationship with family. It is very important to have your spouse understand and be on your side. Other family members will hopefully learn to accept it.
Another aspect of culture is social. It isn't easy finding people who share your interest in FIRE. I believe this is one reason that the older FIRE boards have strong social aspects to them. It's hard being weirder than the rest of society. Having on-line friends helps.
Comprehension. FIRE isn't usually something you just decide to do one day. You get there through a process of understanding your desired lifestyle and your financial set-up. You are comfortable with a level of spending that will not drive your assets into the ground and you understand your investments so that you can sleep at night. If you are smart, you will start off your FIREd life with a healthy padding in your budget.
Usually your lifestyle will be similar to pre-FIRE. However, increased travel or an expensive hobby needs to be thought about before you cut the cord. Wishful thinking doesn't usually increase your asset base.
Choosing a compatible investing style is important. Knowing your tolerance for risk is important, whether high-risk investments or relatively safe ones. There are several methods of determining how much of your asset base is safe to use annually. Just remember that no matter what assets you have, they will never match the studies perfectly. Take study results with a grain of salt, and make your final determination yourself. After all, you (and family) are the only one affected.
arrete
Psychologically For some people, retiring early is no big deal; for others it is a shock. Moving from a situation where someone else tells you what to do for 40-60 hours a week to one where you have unlimited free time can be unnerving. Some FIREes revel in this freedom and have no trouble enjoying their new-found independence completely. Others feel some unease and might impose some structure in their lives through volunteer activities, sports activities like golf or other activities that require a specific commitment. Many people have a settling in period that may take 3 months to a year. After a while, though, most FIREes can't imagine living any other way.
Culture. Retiring early (especially very early) is not an accepted societal norm. Get ready to have people think you are 1) actually unemployed but embarrassed to say so, 2) a wasteful layabout, living off the hard work of others (they don't believe you could be FI) or 3) an ingrate not doing his/her fair share (they may believe you are FI, but RE is unacceptable). There are some people who will believe you, support you and may not even utter those very annoying words "You are too young to be retired". These people are your friends.
Under culture also comes your relationship with family. It is very important to have your spouse understand and be on your side. Other family members will hopefully learn to accept it.
Another aspect of culture is social. It isn't easy finding people who share your interest in FIRE. I believe this is one reason that the older FIRE boards have strong social aspects to them. It's hard being weirder than the rest of society. Having on-line friends helps.
Comprehension. FIRE isn't usually something you just decide to do one day. You get there through a process of understanding your desired lifestyle and your financial set-up. You are comfortable with a level of spending that will not drive your assets into the ground and you understand your investments so that you can sleep at night. If you are smart, you will start off your FIREd life with a healthy padding in your budget.
Usually your lifestyle will be similar to pre-FIRE. However, increased travel or an expensive hobby needs to be thought about before you cut the cord. Wishful thinking doesn't usually increase your asset base.
Choosing a compatible investing style is important. Knowing your tolerance for risk is important, whether high-risk investments or relatively safe ones. There are several methods of determining how much of your asset base is safe to use annually. Just remember that no matter what assets you have, they will never match the studies perfectly. Take study results with a grain of salt, and make your final determination yourself. After all, you (and family) are the only one affected.
arrete
