I think the FIRE community is best suited to handle inflation. Let’s face it, if your seriously pursuing FIRE, you probably aren’t buying a ton of stuff. Housing, food and medical expenses are going up but when you aren’t spending on a ton of other stuff it doesn’t hurt as much. It makes saving tougher but not impossible. I think our current inflation is also a good reality check for people that haven’t experienced the ups and downs of inflation before. We have to account for that in our financial planning because it isn’t always a rosy 1-2%. The 7% mortgages that you are seeing today are laughable to someone like my folks whose first mortgage was around 13%. It’s all just part of the long term financial cycle that we have to find the best way to deal with. The best way to beat inflation is the best path to FIRE. Keep your frivolous spending low, invest in a diverse and well balanced portfolio and be flexible to change as life changes.
Are you in the US? I can’t speak for other countries but I would have a hard time believing the US economy could devolve into that kind of situation. If it did, I think my original arguement still holds. FIRE seeking folks would still be better able to adapt to the situation. They would just step up their intensity.
Growing your food > making meals at home > eating at restaurants
Walking/biking everywhere > public transit/carpooling > driving everywhere
Dealing with that sort of extreme situation would require extreme changes to your lifestyle. Building up skills to be more self sufficient and lower your spending to absolute minimal levels. If you are really interested in this, you might want to check out the Early Retirement Extreme book and forums. Jacob was an early FIRE blogger that focused on building skills to lower his expenses. I believe he was living on < $10k a year. That community is pretty hard core on slashing spending and closer to the prepper mentality it would take to survive hyper inflation.
Pretty much. Reduce your consumption so you need less stuff. Build skills that you could use to barter for things that you would otherwise need to buy.
I think the FIRE community is best suited to handle inflation. Let’s face it, if your seriously pursuing FIRE, you probably aren’t buying a ton of stuff. Housing, food and medical expenses are going up but when you aren’t spending on a ton of other stuff it doesn’t hurt as much. It makes saving tougher but not impossible. I think our current inflation is also a good reality check for people that haven’t experienced the ups and downs of inflation before. We have to account for that in our financial planning because it isn’t always a rosy 1-2%. The 7% mortgages that you are seeing today are laughable to someone like my folks whose first mortgage was around 13%. It’s all just part of the long term financial cycle that we have to find the best way to deal with. The best way to beat inflation is the best path to FIRE. Keep your frivolous spending low, invest in a diverse and well balanced portfolio and be flexible to change as life changes.
My concern if example, the country gone in chaos like argentina or venezuela. is there any mitigation on that?
Are you in the US? I can’t speak for other countries but I would have a hard time believing the US economy could devolve into that kind of situation. If it did, I think my original arguement still holds. FIRE seeking folks would still be better able to adapt to the situation. They would just step up their intensity.
Growing your food > making meals at home > eating at restaurants Walking/biking everywhere > public transit/carpooling > driving everywhere
Dealing with that sort of extreme situation would require extreme changes to your lifestyle. Building up skills to be more self sufficient and lower your spending to absolute minimal levels. If you are really interested in this, you might want to check out the Early Retirement Extreme book and forums. Jacob was an early FIRE blogger that focused on building skills to lower his expenses. I believe he was living on < $10k a year. That community is pretty hard core on slashing spending and closer to the prepper mentality it would take to survive hyper inflation.
So in the end, we eliminate the need of money, but doing everything for ourself, and reduce the need to buy things in economics system?
I’m not in US, in South East Asia.
Pretty much. Reduce your consumption so you need less stuff. Build skills that you could use to barter for things that you would otherwise need to buy.