From Consumer to Investor
Are you familiar with the FIRE movement? It stands for Financial Independence – Retire Early.
It basically teaches to build up as little debt as possible, minimize your spending and save as much money as you can, in order to invest it and live off the dividends one day. Below is a short clip about it.
At its essence it encourages people to consume less and invest more, and opt out of our debt-based society. BRAVO!
That’s the crypto spirit, too!
I have been looking into the FIRE movement recently and find it interesting that nobody seems to talk about crypto yet, even though there are so many parallels. It’s geared towards Millennials, which is the same generation that’s supposedly most open to cryptocurrencies.
Crypto enthusiasts are opting out of our debt-based society, too.
Many of them limit their spending and live minimalist lives, too. Only instead of investing in index funds, they put their money in Bitcoin or other crypto assets they believe will appreciate in value over time.
It’s funny that the Crypto movement and the FIRE movement have not met yet.
The Crypto movement actually is a FIRE movement
…however crypto people have taken the financial independence part to a whole new level.
They believe that the way our current society and money system is set up, there is no way to ever truly be financially independent. That’s why they are getting more and more invested (not only financially) in a new money system that can replace the old one over time.
True financial freedom can only be achieved by having full ownership of your money. As long as a bank or any other third party holds your money for you, they can also withhold it from you.
No matter how much money you have, if your account can be frozen and your funds confiscated at will, you will never be truly financially free.
While financial wealth is just as desirable for crypto enthusiasts as for anyone else, their true end goal is self-sovereignty. This goes beyond money and includes ownership of personal data as well.
True freedom and independence will trump financial wealth any time.
I find the teachings of the FIRE movement very valuable for anyone – not just millennials. I would just encourage people not to ignore cryptocurrencies (or gold and silver for that matter) in order to diversify their portfolios.
And the same call goes out to crypto believers, of course – diversification is key – because there simply are no guarantees, no matter how much you believe in your favorite coin or the crypto space in general.
Learn more about the FIRE movement in this interview with Tanja Hester, FIRE influencer and author of the book Work Optional.