Early Retirement - What FIRE Is Absolutely Not About
[3 min read] 🌀 How to snatch power, control, and the freedom of choice back into your life.
Alright, let’s get into it. When I first heard the acronym FIRE - Financial Independence, Retire Early - I almost dismissed it as a fad.
It brought to my mind stories of extreme penny-pinching, of people who track every single coffee purchase in a spreadsheet and live in a state of constant, joyless self-denial. It just didn’t feel like the way I wanted to live my 20s.
My goal wasn’t to stop working in my 30s. My goal was to build a career I actually enjoy without feeling trapped by golden handcuffs or a toxic team. The "Retire Early" part seems completely out of touch and confusing in fact - can somebody please tell me what I would do after retiring at 35? 🤷♀️
What I really wanted was options. I want to someday start my own company without worrying about money.
That's when I realized I was focusing on the wrong half of the acronym.
Here’s my learning which I want to share with you today: The real magic, the part that can fundamentally change your career and your life, isn't the "RE". It's the "FI" — Financial Independence. This is the part that gives you power, control, and the freedom to design your life on your own terms 📝
To sum it up in 6 words - FI is about having FU money.
FI Isn't About Quitting. It's About Options.
Financial Independence isn't about a finish line. It's about gaining control over your own life.
It's the freedom to:
👋 Leave a toxic team or a boring project without panicking about your next paycheck.
🏝️ Take a three-month sabbatical to travel, learn a new skill, or just decompress from burnout.
🧑💻 Start a company with your friends and be okay with a massive pay cut because you believe in the mission, and are not doing it for the cash.
The goal isn't to stop working; it's to have the power to do the work you want, how you want, when you want. Let’s get into how to make it happen for you.
The FI Starter Pack
Your position in tech gives you an almost unfair advantage, if you play your cards right. Your high income is a powerful engine. Let’s talk about how to put it to work.
💯 Define Your "Enough"
Before you start chasing a number, figure out what you're actually funding. What does your ideal life look like? Does it involve travel? Living in a high-cost-of-living city? Taking a pottery class? Getting a dog? Your financial plan should fund your life - write your priorities down to get a clearer picture. This is your "why".
📝 HQ Tip: Regarding the number, a simple rule of thumb is the 25x Rule. Multiply your desired annual spending in "retirement" by 25. That's your FI number.
The 25x rule assumes you are investing the money and it will continue to grow and you can live on capital gains and dividends as well as some of the principal.
For example, if you think you could live a great life on $80,000 a year today, your FI number is $2,000,000.
If you kept it just in cash, you probably would have even less than 25 years to live on it because inflation will erode the purchasing power of that money.
🏦 Master the One Metric That Matters: Your Savings Rate
The single most important factor in how quickly you reach FI is your savings rate — the percentage of your after-tax income you save and invest.
Someone earning $70k and saving 50% will reach FI years before someone earning $200k and saving 10%.
🥞 Use Your Wealth-Building Stack (In Order)
Learn how to use your benefits package to your absolute advantage, and definitely understand your options.
1️⃣ 401(k) Match: This is free money. If your company matches 50% of your contributions up to 6%, you contribute 6% at a minimum. Not doing this is essentially turning down a 50% return instantly.
2️⃣ HSA (Health Savings Account): If you have a high-deductible health plan, the HSA is the most powerful investment account in existence. It’s triple tax-advantaged: money goes in tax-free, grows tax-free, and comes out tax-free for medical expenses. Max it out! 📈
3️⃣ Max Out Your 401(k): After the match, work your way up to contributing the full annual limit ($23,500 in 2025). This is the easiest way to lower your taxable income and automate your investing. Diversify this portfolio as much as you can, or consider invest in targeted retirement funds.
4️⃣ Roth IRA: If you're under the income limit, contribute to a Roth IRA. Your contributions are after-tax, but it grows and can be withdrawn completely tax-free in retirement. That’s huge tax savings. Consider options like Backdoor Roth IRA and Mega Backdoor Roth IRA if you qualify for those. I know this can seem a lot to understand, but trust me it’s worth it to know your options and take these decisions early on due to compounding effects of money over the years you work.
5️⃣ ESPP (Employee Stock Purchase Plan): Often, these plans let you buy company stock at a discount (typically 15%). It can be a great perk, check if your company offers one and learn how to access it.
🧠 Automate and Outsmart Yourself
The biggest obstacle to saving is your own brain. So, remove it from the equation. Set up automatic transfers.
Your paycheck hits, and poof—money is automatically sent to your 401(k), your IRA, and your investment accounts before you even have the chance to spend it.
Financial Independence isn't about restriction. It's about intention. It's about deciding what you value, and then ruthlessly cutting costs elsewhere.
This chance won't wait 💫,
Don't trade it for a slightly nicer car 🚙,
Build a life of choice, and raise your own damn bar 🏋️♂️.
That’s it for today! What are some of the steps you are taking towards financial independence? Simply reply to this email or let me know in the comments!
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I wish you a great week!
Until next time,
Sonika