Carpe Diem FIRE is for those of us that have already established our current lifestyle and are looking to retire early. Yes, we could all achieve FIRE (financial independence/retire early) more quickly if we sold our homes, cars, and cut off all of our current expenses. For some of us that may be worth the short-term sacrifice. However, for many of us the disruption of our lifestyle would significantly affect our families. If you fall into the latter category then your goal might be to enjoy your lifestyle while improving your financial health from this point forward. Do not waste time with regrets or feel overwhelmed because you did not start out investing right out of residency….
Start now by reviewing your assets and liabilities and determine what can be improved without significantly impacting your family. For example, we live in a home with a backyard and pool that brings great joy to our family. The kids play in the pool every day during the summer. Selling our home now might achieve our goal a few years early but I do not believe that the sacrifice would be worth the earlier retirement. We want to enjoy our time with our children now while investing for the future. If our children were 1 or 2 then might consider the option of selling. These are the decisions that should be discussed when reviewing your assets, liabilities and assessing your goals.
A balance between what brings you joy now and your future goals should be achieved. Carpe Diem FIRE focuses on moving forward while maintaining a lifestyle that brings you joy. You should plan for tomorrow with the understanding that tomorrow is not guaranteed. Do not be jealous or envious of someone who is achieving FIRE more quickly. Learn from them and if that is your goal then follow that path. Otherwise, set your own large goals and find a way to achieve them while maintaining what you have already gained.
Set your goals and work backwards to guide your path. You have already succeeded in the game of life and achieved the unbelievable goal of becoming a Physician. If you apply the same energy to achieving financial independence as you did to becoming a Physician you will find that financial independence is attainable. The process will likely be gradual and there will be a learning curve just like Medical School and Residency but eventually you will be a financial attending and the process will become easier.
C: Control your limiting beliefs and your mindset
A: Advance your knowledge and learn more about your finances
R: Reevaluate your net worth quarterly
P: Plan your 1-year and 5-year real estate investing strategy and repeat
E: Encourage yourself and trust your plan
D: Do Not be discouraged by mistakes and continue to invest
I: Invest time in yourself. Encourage yourself and others to achieve high goals
E: Enjoy your free time with your family and loved ones
M: Measure your success by your contribution to others (abundance mindset)
F: Financial
I: Independence
R: Retire
E: Early