We, unfortunately, need money to survive.
All of our needs are met by people that have no idea who we are. The reason they do this is because we give them money. Without money, the post industrial revolution world that we live in would stop functioning. We would be able to live in small groups without many issues, but past a certain number of people you need money to make everything work.
Money is great for meeting your physical needs (I personally don’t know how to grow all of the food that I eat or build a house), but it’s bad news for your spiritual health. It turns out the best way to make money is to become so specialized that you have no idea what your work is actually doing. We weren’t built for interacting with such an advanced economy.
There is a cool movement on the internet called Financial Independence, Retire Early, or FIRE for short. They agree with the premise that working for money isn’t good for your spirit – and they have an actionable plan that gets you to a point where you don’t need to worry about money anymore and can sort of just do your own thing.
Famous economist John Maynard Keynes wrote an essay in 1930 called “Economic Possibilities for our Grandchildren”. In it, he said that by the year 2030 there will be so much abundance that people will have 15 hour work weeks, at most. And the crazy thing is, he was completely right about the abundance part.
So what gives? Where are the 15 hour work weeks? It certainly seems like people are working more than ever – where is all of that surplus value going?
It’s all going to status games.
When you learn about the lives of the ultra rich, people that have more wealth than they would be able to spend in 30 lifetimes, you find out that they’re all just in huge dick measuring contests with each other. The size of the biggest yacht in the world keeps growing because that’s all these people can compete with anymore, it goes so far beyond practical that it’s obscene.
With our increasing wealth, you would think that we would hit the point of complete satisfaction for a human at some point. The problem is that there is no point where a human is completely satisfied – it’s written into our DNA. This has driven us to create amazing abundance, but it also stops anybody from ever thinking they have “enough” money.
The missing piece – “enough”
The FIRE community makes an attempt to correct this part of human nature – setting a level of “enough wealth” that is far below having super yachts. It does this by coming to a few important realizations.
First, your happiness does not increase that much past a certain level of spending. Once you’re making about the median American salary, all of your needs are covered, and if you’re prudent you can avoid being taken out by the unexpected expenses of life. Once you don’t have financial stress, your life feels much easier, and anything on top of that is just gravy that you can invest.
Second, the amount of money needed to sustain “enough” indefinitely is way lower than most people think. It’s nothing more complicated than your annual expenses * 25. For super spenders, this number is terrifying, but look back at point #1: you don’t actually have to spend a ridiculous amount of money to be happy. Even on a modest income, you can get to your “FIRE number” way faster than your usual financial advisor would suggest.
These points together (which were figured out just a few decades ago) have empowered thousands of people to take control of their time and energy decades before retirement, no longer being beholden to a paycheck from any employer.
Importantly, this does not mean that these people stop working. In most cases, they start working harder, but doing the work that they want to do, the work that they would do if they never saw a dime from it. I’m sure there are a few examples of “sit on the beach for 6 decades” style early retirements, but the working way just sounds more fun to me.
I think that anybody making more than the median American salary should deeply consider FIRE as a long term strategy. In my opinion, it seems like the best way to get the most out of your life.