Before embracing it, I very nearly dismissed the whole FIRE (Financial Independence/Retire Early) concept.
The idea had piqued my interest immediately but at first glance, it seemed as if I did not fit into ‘the same mould’ as everyone pursuing FI (or having reached FI).
I looked on in dismay as I compared myself with the entrepreneurs, consultants, engineers, bankers, IT specialists and other high earners who were able to tuck away not just the equivalent of my entire salary year on year, but in some cases, multiples of my salary, for their financial freedom and early retirement. My initial thought was, ‘Crap, I can’t do this, I don’t earn enough and I’m in the wrong sort of job!’
Then I compared ages and everyone seemed so young – people in their 20s and 30s aiming (and on track) to be FI and to ‘retire early’ by 40 or by their early 40s. I was already in my mid-40s by the time I came across MMM – crap, was it all too late for an ‘old girl’ like me? (although it’s a good job I don’t look or act old 🙂 )
Another thing was that it appeared that you needed to make huge sacrifices to become FI. I mean I am and was able to cut back on my spending but I couldn’t see myself taking the extreme route and being a frugal recluse, living a cheap but not very cheerful (in my opinion) life or living like a student again.
More importantly, I didn’t want to be seen as tight-fisted by friends and family. Yeah, I know I shouldn’t care what anyone thinks. While I don’t mind being a bit different, I do care about what the people I care about think, especially if it may affect my relationships.
So, it would have been no surprise if I had gone about my merry way, thinking FIRE was a nice idea but not for me.
Except that I continued to read about it with an open mind. Why? Because despite my initial misgivings, the whole concept really fascinated me and I couldn’t stop thinking about it!
I ran some basic numbers (on the proverbial back of a fag packet) and it dawned on me that I didn’t need to earn megabucks (no, I don’t need £1 million!) or do exactly what someone else was doing or did – I could just take certain (good) ideas and apply them to my own situation. Yep, personal finance being what it says on the tin!
However, despite embarking on my FIRE journey, I couldn’t help but continue to compare myself to others.
People whose net worths were waaay bigger than mine after a shorter space of time, people achieving astronomically high savings rates, effortless side hustles and blogs earning income to die for. Some had already reached FI, or they were only X years away and they were only in their 30s etc.
Such comparisons were at times a little disheartening until I eventually realised that it was just pointless comparing myself to others. The only comparison worth taking note of is that of comparing my own progress over time.
These days, I can now look at other people’s very high net worths and mega savings rates and admire them and applaud them, without feeling bad about my own attempts and performance.
To say that I never feel any envy would be to lie, but hey, I’m only human – I just don’t dwell on the envy or allow it to become negative, I just focus on what I’m doing myself. Everyone’s situation and circumstances are different, whether it’s their background, age, stage in their lives, different countries, different jobs etc.
Not everyone likes to share their actual numbers but I made the decision to do so when I started this blog – I just know that some readers like to see real figures (to compare with their own, I suppose, haha!).
Until around nine years ago, my net worth was a negative number due to my numerous credit card debts. I eventually paid these debts off and by the time I started my FI journey in 2014, my net worth was £74,596.
As at the end of August, it stood at £205,509.
STOP! Try not to compare my net worth with your own – we are different! 🙂
I didn’t even notice that I’d passed the £200k milestone because by itself, it doesn’t actually mean anything, it’s just a number since I’m not using it in any of my calculations. However, it’s good to compare how far I’ve come since those negative days!
[EDIT – I see from some of the comments that I need to make a clarification – my £200k race with John K is with my Future Fund, not my Net Worth. My Future Fund currently stands at £125,946]
Do you compare yourself or your savings/investments progress and how does it make you feel?