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Comment by ak39 | Hacker News Reader

There is truth in the notion that the saving mindset only heightens financial anxiety. And this, in my experience, can lead to poor financial decisions (the old "penny wise pound foolish" behaviour).

I have also experienced an involuted perspective to money itself when on the saving mindset. Instead of seeking expansive [sic] opportunities, with an always-on savings mindset I often stop taking risks altogether. The FIRE movement, it seems, is only for those who have a reliable and predictable monthly income, or for those who can assume somewhat 100% employment till 40. If you're an entrepreneur, this arbitrary 50% saving of income won't work. You're more likely already forced to save for the next 3 months's just for wages and electric bills.

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Not sure why you're being downvoted.

What isn't addressed in this 20-year plan is the risk of the many things outside of your control: health, local economy, unexpected family members, etc.

This isn't a risk-free option, it's an attempt to minimize risk in exchange for minimal financial independence. The margin for error is very low.

If you want to achieve financial independence in a more robust manner:

1. Save up 1-3 years of living expenses. This quickly gives you the financial independence of a practically unlimited runway. It's much more useful to have financial independence early in your career.

2. Use that independence to find the best possible way to make money for you -- retrain, start a business, etc.

3. Invest. Take as much (calculated) risk as possible while you're young and become more conservative over time.

People who front-load this in their careers often (in my experience) not only retire early but do so with significant wealth.

I’m trying hard to save enough for my son so he can be FI when he enters college (If he chooses to). I want him to have the choices I never had - not to spoil but pursue any path he desires without the mounting pressure of having to earn an income. I know this could go wrong if not done right so I hope to do it right by planning far in advance.

That's very interesting. I feel like being handed FI at a very young age could go either way. Either he realizes what a gift he's been given, or he squanders it because he doesn't. I don't think that I would have appreciated it at that age myself.

Of course, it's your choice to make (and I definitely don't know your situation or your son's situation), but it seems to me that a big part of FI is the mindset, not the money, and I'm not sure you can acquire the mindset without going through the frugal living.

Sure. My goal is to instill the mindset far in advance of handing down any sums of money. Basically, if I don’t observe the type of behavior I’m looking for such as managing your own finances in an intelligent manner, I’ll probably do something else with that money or just let it accrue interest until he is ready.

> The FIRE movement, it seems, is only for those who have a reliable and predictable monthly income, or for those who can assume somewhat 100% employment till 40. If you're an entrepreneur, this arbitrary 50% saving of income won't work. You're more likely already forced to save for the next 3 months's just for wages and electric bills.

I don't think you're viewing this quite right. There's no reason you have to hit a magical 50%. Having a regular income just makes it easier to predict when you can retire / when you become financially independent.

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