Playing with FIRE: the book

How far would you go for financial freedom? It's the subtitle of Scott Rieckens' book and also his year-long quest featured in his documentary.

What is Financial Independence?

Basically it's as simple as spending way less than you earn, investing the difference and getting to a point where the investment income supports your lifestyle.

For some people, financial independence comes very naturally. And then there's Scott and his wife Taylor (and baby Jovie). Their income is good, but they also lease a BMW, are members of a boat club, frequently spent hundreds on dinner and live in an expensive part of San Diego, California. At least, until now.

Why the book?

Scott says that the idea of the book (and documentary to come) is to show "a journey with all of the anxieties, disagreements, negotiations and mistakes that I imagine so many others would expect or fear". He makes good on that promise.

He figures that this is an option for many people - and he backs that up by profiling people who are doing it. Some have massive salaries, others are baristas, or are raising several kids on a combined family income of $60,000.

What's stopping more people doing this?

The "machine of consumerism" constantly encourages us to buy more stuff - to keep up with our neighbours - regardless of whether that stuff is useful or joyful for us.

Also secrecy. Money beats death, religion and politics as the most difficult topic to talk about. This does us harm because we don't learn from each other.

Ten things that make you happy

Scott asked his wife to make a list of the ten things that make her happy on a weekly basis. He did the same. They found that a lot of their hard-earned money on was going to things that weren't in their top ten. In fact most of their top ten was things that cost little or nothing.

Match spending with values

It sounds simple - merely align what you want with how you spend - but it can be hard. The BMW, the dream house, the boat club membership, the takeaway breakfast. It's not about the item itself but the psychology attached to it.

Logically they realised there spending was unsustainable and didn't match their priorities; "we were overspending and undersaving in ways that valued momentary satisfaction over long-term stability".

"It's about asking 'Is this purchase as important as my independence?' and if not, set that item back on the shelf."

Massive impact

Particularly after finding affordable housing and transport, the Rieckens family was able to massively increase their savings rate (from 16% to 58%) and achieve freedom a decade from now (rather than 34 years). Having done those calculations, there's a big temptation to make that the major goal - and be driven by making savings.

Finding middle ground

Scott and Taylor realised that there's a middle ground between $200 sushi dinners and deprivation. Instead they focus on their life goals and how they want to spend their life, with financial freedom more of a blur than a sharp finish line.

Rather than putting "all the eggs" in the retirement basket, they find that as much it's about financial freedom it's also about "living a much calmer more thoughtful and self-directed life".

What happens when you reach independence

Scott's still a long way from that point, but Pam (a financial independence blogger) finds that people who do this "tend to be very ambitious. [They] don't just stop working. You've got all this additional time that you can spend on something that is more meaningful ... People who reach financial independence do all kinds of very innovative projects ... you really are freed up to do bigger and bolder things."

Friends for the journey

Many of Scott and Taylor's highlight were meeting others on a similar journey, for "both moral and logistical support". It seems that while most of society goes a different direction, it's helpful to know people who are on a similar wavelength.

What you really really want

Vicki Robin (author of Your Money or Your Life) stresses to them that it's important to work out what they really want. Running your own business might be good, but will you still be motivated when you have all the money you need? It's great to want to spend time with you small child, but what happens once they're in school (or have left home)?

Final warning

"This journey is about money, but it's about so much more than money. It's about finding meaning outside of work and using money as a tool ... to harness that meaning in daily life."

In a matrix-style warning, Scott says that "once you see how 'stuck' that luxurious, consumeristic life is, you can't unsee it. In fact, you notice it everywhere you look; the obligatory holiday parties, the roadside billboards for car financing, bumper-to-bumper commuter traffic, the new McMansion development down the road, the melancholy that sets in every Sunday evening."

"Likewise, once you taste a truly free life, untethered to a schedule or a paycheck or a career ladder, you can't untaste it. Once you ask yourself the most important questions - What do I want to do with my time, and what makes me happiest? - you can't ignore the answers."

In short

I really enjoyed this book. The combination of a fact-finding mission along with his own personal story in real-time made it fascinating. It's a great book to borrow from the library. That can be your first saving :)

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