Hi there, this is me, Dario – aka Prometheus – your FIRE titan!
In Greek mythology, Prometheus is the Titan who stole fire from the Gods to share it with humanity. I want to share another kind of FIRE with you 🙂
Financial Independence Retire Early
FIRE is the acronym for Financial Independence Retire Early. Financial Independence is the status that you reach when the income from investments covers your living expenses. When you reach FIRE you don’t have to worry about having a job anymore, because your money works for you.
FIRE is a global movement and there are thousands of people out there pursuing it. Some FIRE champions have reached Financial Independence in their early thirties and now spend their lives traveling.
FIRE may seem like an impossible task for the everyday Joe, but it is a simple mathematical concept. It can be applied to everyone who saves and invests, and I will unpack it throughout this blog.
I am pursuing FIRE to spend my time on the things I love the most. As a matter of fact, the Retire Early part of the equation matters the least to me. It is the Financial Independence that I really want.
My (brief) Story
I moved to the US from Europe about 10 years ago for work. I work in the field of impact investing, one of my greatest passions alongside FIRE.
Impact Investments are investments that seek positive environmental and social impact alongside financial returns, typically made in social enterprises. I spend my time researching investment opportunities that do good to the planet and people.
I decided to work at a nonprofit because my investment research is not influenced by commercial reasons. In other words, I can research the most impactful investments without the fiduciary duty constraints of registered financial advisors. Working at a nonprofit doesn’t maximize my income, but it maximizes my happiness and sense of purpose.
Yet I can’t complain about my salary. I was able to purchase a home in the San Francisco Bay Area, one of the most expensive metropolitan areas. My salary also leaves me ample room to save and invest, thanks to budgeting. Saving and investing are the drivers to reach Financial Independence.
My FIRE plan
I want to reach Financial Independence to do the three things I like the most in life: start a regenerative agriculture farm, travel the world, and invest in social entrepreneurs.
My timeline is 15 years. In the next 5 to 7 years, I want to save enough wealth to cover my future living expenses and reach Financial Independence. That amounts to 25-30 times my annual living expenses in liquid investments. With 25-30 times my annual living expenses, I plan to withdraw every year 3-4% of the portfolio every year to cover my lifestyle. After reaching Financial Independence, I will work for 8-10 more years to save for charity and investments in social enterprises.
15 years long time compared to many other people who reached FIRE. But my daughter is 3 years old and I don’t need to reach Financial Independence before she gets 18. Also, my wife does not share the same FIRE goals. So I want to reach my goal while being respectful of her current lifestyle wishes and don’t ruin our relationship. I also plan to write about balancing our priorities in this blog.
This is where I am starting. I am 36 years old, and I have accumulated 7x my annual income in investments so far.
During my Financial Independence journey, in other words, the wealth accumulation phase, I will save, invest, and live frugally. I will invest in a portfolio of passively managed funds that takes into consideration social and environmental impacts. I’ll minimize my consumption and aim to live a conscious life. I believe that what you own will eventually own you, and since I value freedom more than anything else, I want to own as little as possible.
So, what are your fire goals?