While quitting quietly is doing the bare minimum a job requires, in search of a better … [+]
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All the talk about quietly quitting makes it sound like everyone hates their jobs and just sleepwalks through the workday, but that’s not the case. There is another group of people who are doing the opposite. This move is called FatFIRE. The acronym stands for Financial Independence, Early Retirement. Fat refers to the abundant savings one must acquire to gain the financial independence necessary to retire early.
This movement shares some of the sentiments of the silent abandonment trend. The group doesn’t necessarily love their jobs, careers, and bosses; they just want to get out as fast as possible. While quitting quietly is doing the bare minimum a job requires, in pursuit of a better work-life balance, fatFIRE advocates the opposite. The mindset is to relentlessly focus on getting rich quick. The end game is to retire young and rich.
People who adhere to this philosophy are willing to put in the time and effort to earn as much money as possible and then kick back and retire while they’re still young. These people tend to work at big tech companies, high-end law firms, are startup founders, and those whose occupations lend themselves to providing generous compensation packages and stock options. With their disposable income, they will use the earnings to invest in the stock or crypto markets, build businesses, and have some side hustle.
FatFIRE Reddit
Reddit has an anti/work subreddit, but there’s also a large r/fatFIRE group. This crowd eschews traditional wealth management advice to slash costs and live a frugal lifestyle to save money. The more than 325,000 members talk about ways to get rich. Motivated, success-oriented people talk about stocks, business deals, finding good-paying jobs, and other ways to make money and leave the workforce in your 30s or 40s.
His mantra is to “retire with a big reserve” and live off dividends and payouts from his investments and side businesses. Many of them are looking for a cash flow of around $100,000 a year as a benchmark for quitting and leaving the working world. His definition of having enough money to be able to spend $100,000 each year in retirement requires a portfolio of about $2.5 million.
Some people’s impetus can be attributed to what they have seen their parents go through. They loyally worked dead-end jobs, were laid off, or had to push themselves into their 60s. When they were able to retire, the older generation did not have enough good years left to enjoy the so-called golden years. Instead of moving on, this group wants to get out of the rat race while they’re still young enough to enjoy decades of life doing whatever they want.
Easier said than done
The fatFIRE cohorts are getting very stressed in the short term, hoping to be financially rewarded later on. Even if they retire early, they can feel bored and lonely.
If you look at the historical records of the stock market, you will see that there are boom times, followed by corrections and crashes. For example, the great financial crisis of 2008 caused stocks to crash and the economy to crater. Similarly, real estate and other high-reward investments carry significant risks.
The future is uncertain with runaway inflation, high interest rates, a possible recession on the horizon, and geopolitical turmoil.
The Downside of Getting Rich Quick
Having $2.5 million sounds like a lot of money, but it’s not if you live to be 90 years old. You can panic due to a stock market downturn and sell at a low point for massive losses. Businesses can go wrong. A medical emergency can bankrupt you. A contentious divorce, poor decisions, and bad luck can take a significant toll on your savings.
If things take a turn for the worse, you may have to go back into the job market. It can be challenging as you have been out of the workforce for a number of years, your skills may have atrophied and you have not kept up with new developments. Interviewers and hiring managers may be wary that you’ll soon quit when you get your money back and decide to turn down your candidacy.
However, one of the highest-ranking posts on the r/fatFIRE subreddit, by user Snoo68013, could act as the movement’s rallying cry: “Have good food. Enjoy the relationship. Exercise and enjoy sex. Sleep well. Call your parents. That’s all there is to life. Greed has no end. Repeat after me. Time is the currency of life. Money isn’t.’”
Source: www.forbes.com