There is a great deal of celebration around Bitcoin lately and with good reason. However, a victory for one should be a victory for all; especially if the focus is about freedoms and or the concept that solutions can be found for America’s real financial stress.
Most people have an awkward or bad relationship with money. They spend too much? They have to little? They are not confident enough to appreciate the difference between “need” and “want”. And for those who are the top 1 percent, their relationship often can be simply tied to their financial success. It’s a score card! Money is power! Power is money! But really is more Money happiness?
The relationship between decentralized finance (DeFi) and the Financial Independence, Retire Early (FIRE) movement lies in their shared focus on financial autonomy and investment strategies. DeFi offers innovative financial services without traditional intermediaries, potentially providing higher returns through decentralized platforms. This aligns with FIRE’s emphasis on aggressive saving and investing to achieve early retirement or financial independence. Both movements attract individuals seeking alternatives to conventional financial systems and offer tools for building wealth, though they differ in risk exposure and regulatory oversight. There is, of course, an irony to the common focus which can be a healthy one once you have enough savings. There lies the excitement for the FIRE movement in the case of those who have “bet” early on the need for Bitcoin. Financial independence allows a person to set the pace for how they want to live their life and to prioritize a lifestyle that is centrally focused on what truly makes them happy!
Those who are working a 40 hour work week for a boss they hate may be reading this as a 34-45 year old and thinking “hindsight is 20/20”. Then again, the generation who has children can teach them better with such hindsight. Call money whatever you want, “Bitcoin”, “Yen” or “the Dollar” or “Gold”. Regardless, headwinds exist for everyone’s purchasing power and it has to be concerning. Such is the stress that millions-billions of people are experiencing while millions in the FIRE movement are avoiding.
What can you do? Spend less, save more, and invest in the relationships that bring you joy! These are the active decisions that affect your life’s journey and are the decisions which you are in fact in a position to make. We all must focus on what we control as decisions. Structure matters in how we choose to live our lives. Reflect on the past 10 years and look forward to the future in increments of 3,5 and 10 years. What was your happiness ratio between what you enjoy and the pleasure that money earned for you? Now if you HODLed Bitcoin, sold a business, or got lucky in some other way and can retire early – please don’t be obnoxious, loud and or proud. Quietly enjoy the FIRE knowing that you can prioritize life in a healthy way. Save! Optimize how you spend both your value both as “time and as “money”! Enjoy the moments with family, friends and or your side gig that you do because you enjoy it!
Next piece – why retirement isn’t for everyone, but a healthy relationship with money is!!
By Dan Weiskopf
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