For many of us, the thought of achieving Financial Independence to Retire Early (FIRE) feels like a distant dream. The FIRE movement is deeply intertwined with our aspirations, fears, and everyday choices. But what if you had a FIRE roadmap, etched by a friend who's been there, done that?

In this session, we’re excited to have Aussie Firebug — a beacon of inspiration and knowledge in the Australian FIRE community. Since 2015, he's been candidly documenting his FIRE adventures through his popular Aussie Firebug blog . He has even crafted his own Aussie FIRE calculator and does yearly research on Australia's FIRE enthusiasts. Through a blend of properties, ETFs, and a hint of crypto while globe-trotting, Aussie Firebug has made his own unique path to the FIRE dream.

This episode is a treat as we talk about Aussie Firebug’s evolving FIRE journey and the balance between frugality and treating yourself. Beyond the numbers, he advocates understanding your ‘why’ to find happiness and fulfillment along the way to achieving FIRE. Shares versus property for FIRE? Aussie Firebug has insights too on this debate.

Finally, Aussie Firebug offers advice to help you understand and deal with the biggest challenges of chasing FIRE. Whether you're new to the FIRE movement or looking to fan the flames, this is a conversation you won't want to miss.

The evolution of Aussie Firebug’s FIRE journey

The chase of the Financial Independence, Retire Early (FIRE) dream isn't always linear. Aussie Firebug, a seasoned follower of the movement, offers a profound insight into this. He shares how his perspective on work, finances, and life has evolved over the past decade.

1. Quitting the rat race

A young man fresh out of uni, Aussie Firebug soon felt the weight of a monotonous work regime. An hour's drive to work, followed by the same return journey. Alongside the dreariness of a regular job, it all meant a whopping 60 hours of his week was just gone.

It wasn't disdain for his work, but the sheer commitment of time that became a constant thorn. He found himself questioning, “Is this it for the next 40 years?”. It’s a question many of us find ourselves asking.

2. The shift overseas

Seeking alternatives to the status quo, Aussie Firebug chose to live and work abroad. He hopped between 30 countries with his partner by his side.

London, with its dynamic private sector, became the eye-opener. He saw a city bustling with ambitious minds, passionate conversations, and palpable energy.

Suddenly, work wasn’t just a means to an end. It was invigorating, purposeful. It was the kind of environment that made him want to work.

3. Coming home: finding purpose beyond money

Upon his return to Australia, Aussie Firebug faced a fresh challenge. How to recreate the electrifying and purposeful work he found abroad?

After building a sizeable portfolio, Aussie Firebug felt the urgency to escape the rat race had diminished.

His dividend income wasn’t enough to cover all expenses, but it was getting there. The financial snowball was in motion. The larger question loomed: "What now?"

For many who chase FIRE, the journey starts as a desperate bid to break free. But as Aussie Firebug’s story suggests, once you're on the path, your goals and desires might pivot. His FIRE dream, which started as an escape route, evolved into a path of self-discovery.

Aussie Firebug’s journey is no longer solely about financial independence. He’s designing his work and lifestyle in a way that aligns with his purpose and evolving aspirations.

What we learned from Aussie Firebug’s FIRE journey

If there's a key takeaway from this story, it's the fluidity of life. As we grow, our perceptions, desires, and ambitions shape-shift.

The real wealth? It's in discovering what truly our purpose is and striving for it with passion. Financial independence serves as a supportive backdrop. So, whether you’re new in the workforce or reevaluating your life’s purpose, remember: it’s okay to evolve .

How to balance frugality and fun

FIRE enthusiasts are often too good at their game. They've perfected the art of saving, of finding those discounts and spare dollars tucked away in their lives. Yet, when it’s time to enjoy what they worked so hard for, spending money feels almost a sin.

The real purpose of money

If you've accumulated a fortune but never spent a dime, what was the purpose of that wealth? To answer that, Aussie Firebug referred to a book called Die With Zero (Getting All You Can From Your Money and Your Life) . He said that the real purpose of money is not just to serve as a protective shield but to be spent, enjoyed, and experienced.

Think about it for a minute. If you never spend your money, was all the effort and time – your life energy – worth it?

Striking a balance between security and rewarding yourself

Let's be clear. There's undeniable comfort in knowing you've got a cushion to fall back on. But if your end goal with FIRE is simply to build an endless pile of money, the journey might lose its zest. After all, the purpose of a portfolio should be to last you a lifetime, not an eternity.

Does that mean you shouldn't leave anything for the next generation or a noble cause? Not at all. Yet, that's still using your money. There's a difference between purposeful spending and mindlessly hoarding wealth out of habit or fear.

The FIRE movement has highlighted the significance of being frugal. But as the narrative evolves, it’s okay, even essential, to reward yourself for your discipline and diligence. After all, money, while a vital tool, is still a means to an end. And sometimes, that might just mean treating yourself to life's pleasures, guilt-free.

How to find happiness and fulfillment in FIRE

Ana ponders: "Is it worth giving up a lucrative job if it means being truly happier in life?” It's an age-old query many of us wrestle with. Many of us have been led to believe that a higher bank balance directly correlates with more happiness.

Can we measure happiness by net worth? Or is it found in the freedom of choice, the luxury of time, or simply the pleasure of living every day with passion?

Once obsessed with FIRE literature, Aussie Firebug has since taken a turn. To him, it wasn't about obsessing over money anymore. He had that part figured out. It was about "What's next? What am I going to do?"

Tash chimes in with a sentiment many can relate to: the feeling of "I can make the money, but what is the life I want now?”. Why wait for the distant future when the present beckons?

Ana adds another vital point. The obsession with building a million dollar portfolio or the 'perfect' financial goal can be blinding. What if we focus on what that money can do for you? Can that allow you to take longer parental leaves or hop into new interests?

It all boils down to one profound question, "What's your why?". Why do you want to invest, save, and work hard? Is it for a number on a statement, or is it to craft the life you've always dreamt of?

How to start a FIRE: should you invest in shares or property?

We’ve all played the "if I could go back in time" game. Ana throws this challenge at Aussie Firebug. Would he invest in property or individual shares like Tesla or Facebook? Or would he learn more towards passive ETF investing ?

Aussie Firebug suggests there's no straight answer. It's not about the what; it’s about the when and the unique skills you can leverage .

For example, a 25-year-old might relish the thrill of the trade or renovating a property over weekends. However, a passive investing style might win over a 35-year-old who doesn’t have time to learn trading techniques or drywall installation.

Property investing: effort and risk vs. returns

Aussie Firebug puts it succinctly: "Property has more problems to solve." The more skill, effort, and knowledge you bring, the more value you create. If you're someone who can spot a good deal or has knowledge of a local council's planning system, you might be onto a winner.

The potential returns from properties can often outstrip those of passive investments, but you take on more risk. There's paperwork, tenants, maintenance, taxes, and more. It's the classic risk versus reward debate. Can you handle fixing a clogged toilet at 2am for a higher return?

Then again, the returns to sweat equity can be significant because you’re only competing with local mum-and-dad investors. It's just Dave and Sarah from down the road, not big property moguls. The playing field is slightly more level when you are focused on quaint $500,000 properties in Latrobe city.

Shares investing: effort and risk vs returns

Shares, particularly ETFs, are the more quiet and drama-free investment route. Unless you’re involved in active investing, shares don’t require much time and attention. Your passive investments don’t give you 2am emergency calls about a burst pipe.

You might ask: “But what about the euphoria of seeing your property value jump from $600k to $850k in two years?”. Sure, you can’t usually expect the same from the sharemarket, especially if you’re not taking the gamble of picking individual shares.

Even then, active investing comes with firm-specific risks and complexities. It’s anybody’s guess which shares will skyrocket next unless you have industry insight or incredible foresight. There’s a chance you might profit in short periods. But a report on beating the stock market suggests that investment pros – let alone regular at-home investors like us – have little chance of beating the market.

That said, the beauty of ETFs lies in their simplicity and potential for passive growth and dividend income. However, this doesn’t mean ETF investing doesn’t have its own share of risks. There’s no guarantee that the sharemarket will do well in the future just because it went up in the past. Even the most passive ETFs are exposed to market or economic risks outside our control and knowledge.

Consider your hourly life rate

While someone might rave about the profit of their investments, they often forget the hours they poured into that. When evaluating any investment opportunity, consider your time's worth. If an investment is going to eat into 400 hours of your year, is the potential profit worth those hours?

Assign an 'hourly rate' to your life. If an investment doesn't match up to this rate, perhaps it's time to think twice. As the saying goes, sometimes the juice isn’t worth the squeeze.

Aussie Firebug’s advice for FIRE beginners

The journey to financial independence is a deeply personal one. It's filled with introspection, tough choices, and the occasional need to swim against the current. So, we ask Aussie Firebug some insights on how to start a FIRE journey with understanding of the biggest challenges ahead.

1. The social cost of FIRE

A major challenge highlighted by Aussie Firebug is social. It’s not just about the maths and the investments.

We've all been there: Thursday night drinks, a weekend brunch with friends, and frequent holidays. While these moments create wonderful memories, they can also chip away at our savings. Making the choice to prioritise financial independence may mean re-evaluating some of these social commitments.

These changes could be met with surprise, confusion, or even resentment. And this doesn't just impact friendships. Romantic partners, with whom you've crafted a certain lifestyle, might also need to be part of these conversations.

Now the question remains: do you adjust your FIRE journey to maintain these social connections? Or do you modify the way you connect to suit your FIRE ambitions?

2. A strong “Why” to keep a fire in your belly

Without a compelling “why”, small inconveniences in your FIRE journey might start to make you feel lonely and deprived.

The essence of the FIRE journey is discovering the real purpose of financial independence. Why do you want to be financially independent? Is it to travel the world? Start your own business? Spend more time with loved ones?

This is not just about setting a broad goal but being specific about it. That said, Aussie Firebug recommends writing down a vivid picture of your FIRE destination. There’s something about seeing your dreams in black and white that not only provides clarity but also motivation when the going gets tough.

3. Choose your tribe

We've all heard the saying that you're the average of the five people you spend the most time with. The path to FIRE might require evaluating your company.

Do your friends lift you up or drag you down? Aussie Firebug points out the difference between "uppers" and "downers." You want to surround yourself with the “uppers” — those who inspire, energise, and understand your journey.

Sometimes, even family can become "downers" that affect your energy and perspective. However, it's important to remember that this is not about leaving your loved ones behind. Communication is key— expressing your goals and setting healthy boundaries. After all, if they understand you better, they can be the wind in your sails and source of strength you’ll need later on.

While this article covers the essentials, there's more to dive into in the full episode. Curious about why Aussie Firebug started a blog and keeps himself anonymous? Or how the power of attitude is shaping your wealth?

And a tiny reminder: the Pearler community is a circle of “uppers”. Join us on Instagram or our Facebook group where we celebrate and lift each other up in this FIRE adventure.

Happy investing!

Tash & Ana