Question: How does one become a “millionaire next door?” What is the mindset by which an individual ends up with a large net worth without a specific goal in mind (unlike the FIRE types, who have very specifically calibrated targets – typically associated with early retirement.)
I'm on board with FIRE. I think it's good to encourage people to save more because the many people seem to consume until they hover near insecurity regardless of their level of wealth. If you look at FIRE forums, the people there are often extreme. They spend a lot of their time trying to optimize their expenditure, so it selects for people who like thinking about this sort of thing. Merely avoiding spending a lot on (1) Housing (2) Car (3) Travel, basically the big stuff does a lot of work. Cutting down on smaller things can be at times more demanding of your attention and time. I think a lot of the people who are extremists on the small stuff actually take some sort of pleasure in it. Which is fine of course. I like getting takeout a lot. Maybe it's not worth it.
I think there are differences in time preference and I think there are differences in early life experiences. I imagine it is difficult to adapt downward harshly if your parents were wealthy. If you were poor then driving a 20 year old vehicle does not seem that hard and living in a small house and not being expensive clothing isn't outside the norm. I think the perfect candidate for FIRE would be a high conscientious and intelligent person who was very poor growing up.
I think being financially secure is a protection against being cancelled. If you are able to save enough money to retire early, then you are able to better speak freely. If you don't have 2 months of savings in your account, you better be careful with your speech.
I'm on board with FIRE. I think it's good to encourage people to save more because the many people seem to consume until they hover near insecurity regardless of their level of wealth. If you look at FIRE forums, the people there are often extreme. They spend a lot of their time trying to optimize their expenditure, so it selects for people who like thinking about this sort of thing. Merely avoiding spending a lot on (1) Housing (2) Car (3) Travel, basically the big stuff does a lot of work. Cutting down on smaller things can be at times more demanding of your attention and time. I think a lot of the people who are extremists on the small stuff actually take some sort of pleasure in it. Which is fine of course. I like getting takeout a lot. Maybe it's not worth it.
I think there are differences in time preference and I think there are differences in early life experiences. I imagine it is difficult to adapt downward harshly if your parents were wealthy. If you were poor then driving a 20 year old vehicle does not seem that hard and living in a small house and not being expensive clothing isn't outside the norm. I think the perfect candidate for FIRE would be a high conscientious and intelligent person who was very poor growing up.
I think being financially secure is a protection against being cancelled. If you are able to save enough money to retire early, then you are able to better speak freely. If you don't have 2 months of savings in your account, you better be careful with your speech.