Skimm Money: Little Treats, FIRE, and the Office Jerk

It’s hard to deny the appeal of the FIRE (aka “financial independence, retire early”) movement. Saving and investing aggressively in your 20s and 30s so you can retire in your 40s? Yes, please. But there’s more to it than that. We spoke with Kristy Shen, co-author of “Quit Like a Millionaire,” about what FIRE really is and how to put its principles to work for you.

What is FIRE all about?

FIRE has evolved into something that isn't so much about early retirement as it is about financial independence. During the pandemic, people started to reevaluate their work-life balance and what it means to give up their time. FIRE is really about how to use your money as a tool to buy back your time and use it to do what you want to do. It's not really about early retirement anymore.

What’s the biggest mistake people make when investing for FIRE?

The biggest mistake people make is trying to dance in and out of the stock market. This is why many FIRE followers invest in index funds. We have gone through so many market downturns, and by investing in index funds, you never have to panic sell. Also, people forget that these funds pay you a yield, you get paid passive income in the form of dividends and interest.

What are your top three FIRE tips?

1. Invest as early as possible. If you're young, you have time on your side to grow your portfolio. Learn how to invest, and get into the market.

2. Take advantage of remote work. There are many countries around the world that offer digital nomad visas. Embrace remote work to help with work-life balance. 

3. Think about what you’d do with extra time. Every dollar of passive income generated by your portfolio can be used to buy your time back. Would you spend more time in nature? With the people you love? Health and time are our greatest resources, so don't give it all away to your employer.

Answers have been edited and condensed for clarity. Read an extended version of the interview here.

While millennials and Gen Zers are cutting back…

Boomers are splurging.

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Try this Google Flights trick.

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Job hunting is getting even worse.

You could be the office jerk…

But you probably don’t know it.

If you’re concerned about your drinking water, you may be wondering if your current filter is really doing the job. Especially if you haven’t replaced it in a while (no judgment). Ahead, Chitra Agrawal, cookbook author and founder of Brooklyn Delhi, tells us how a water filtration system became one of her most prized possessions.

Tell us about a recent purchase you've made that felt like an investment.

When I was pregnant, our water tested positive for lead, but the amount was just shy of the level that would make the city do anything about it. My husband did some research and found the Berkey, now one of our most prized possessions.

How much did you spend on it?

$395.

Why do you consider it a good investment? 

Even after our tap water was lead-free, we continued using our Berkey because the water just tastes so good, and I love the way it looks in my kitchen. It’s made of stainless steel and kind of reminds me of the water vessels in India.

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