Hi everyone, it’s been a while since I last blogged! With the quarantine in place, I’ve decided to get back into journaling and blogging. Hopefully, this will keep both of us entertained. If it seems like you’ve missed out on some updates, don’t worry, I’ll fill you in along the way. In the meantime, stay safe and remember to wash your hands.

Here we are at Day 7. Today, the US has surpassed 100,000 coronavirus cases. As I watch this impending crisis unfold and see over 3 million people filing for unemployment, I feel immensely grateful for my financial independence.

I’ve been watching the rise of the FIRE movement from a distance. I’ve never been one for big groups or affiliations, and I reached financial independence before it became a popular goal for many. After all, isn’t personal finance supposed to be personal?

This blog, Reach Financial Independence, is tailored to encourage financial independence, not necessarily early retirement. It’s about having enough money to live life on your terms. If early retirement is your goal, great! If it’s a career change, becoming an artist, or staying home with the kids, that’s wonderful too!

The FIRE movement often gets criticized because people think we all just want to lounge around and sip cocktails for the rest of our lives. Some enthusiasts tried to achieve financial independence too quickly, which led to overly optimistic asset allocations or leveraging real estate aggressively.

Now, many are panicking because their plans weren’t as solid as they thought. Issues like too much leverage, over-reliance on the 4% rule, and no cash buffer are becoming apparent. Most plans don’t account for unexpected events like the current crisis.

I used to write about my diverse income streams, thinking it was unlikely that all of them would dry up simultaneously. But today, that’s the reality. Despite this, my life hasn’t changed much because my properties are paid off. I can simply close them and wait. Even my cabin in Colorado costs hardly anything annually in property taxes.

I have a substantial cash reserve, which gives me peace of mind. While I’m concerned about inflation and the decreasing value of paper money, I can cover my living expenses for several years before needing to sell any investments. My plan isn’t foolproof, but it would take at least three years of downturn before I’d need to make significant changes.

When the markets were bullish, my conservative approach might have cost me potential earnings. But now, it has spared me from significant losses and stress. I prioritize safety over potential high returns.

If your situation is different, it might be time to rethink your asset allocation. Avoid becoming too reliant on market conditions. Keep enough cash reserves and resist the temptation of high-risk investments, like overly leveraged real estate.

I’ve had to practice a lot of restraint to avoid risky ventures. As a foreigner, it’s almost impossible for me to obtain traditional credit, so I built my houses with cash. Although I could’ve made more money by taking out mortgages and investing the difference, I’m relieved it worked out this way. I don’t need more, and likely, neither do you.

A FIRE budget isn’t about your current spending. Once your house is paid off and if you take advantage of geographic arbitrage, like I do, you can live on a fraction of your current expenses.

This crisis serves as a crucial reminder for those of us aiming for early retirement to be confident in our financial choices. The fallback plan of “I can always go back to work” might not be viable right now.