The Problem with the “FIRE” Movement
AI Will Crush Your Job
"The AI will end all jobs," "There will be a universal basic income," "We will all live in Happyland," ... As much as I think about it, I believe AI has an incredible ability to help and make people more productive. It allows us to do more in less time. This fundamentally changes a lesson passed down from our grandparents: "If you work hard, you'll go far."
The main problem I see with this type of technology is that there will be many people who won't know how to adapt. For these individuals, even if they have a universal basic income, it will only be a minimal amount, enough to live on the edge.
What scares me the most is that no job is immune to being replaced. You may think what you do is unique, but there's a high chance that you could be replaced by a machine.
For all these reasons, I believe the FIRE movement is one of the most logical approaches in today’s world. This movement revolves around achieving early retirement through smart investments.
One of the graphs that best illustrates this concept is the following:
The FIRE movement offers numerous benefits, but primarily:
The FIRE community has raised the issue of saving more money.
FIRE shows how you can take control of your finances.
Some FIRE members have created truly meaningful lives for themselves.
However, not everything is as shiny as it seems. I say this because, during this journey, I see many people becoming obsessed with the blue line in the previous chart. They try to increase it by pennies and live in extreme frugality for many years. It can take 10-20 years of living in conditions that don't justify reaching that independence.
If that weren’t enough, after spending so many years accumulating savings, the day you achieve that freedom, you likely won't know how to handle it or how to enjoy the wealth you've gathered, and frankly, that will make you miserable.
It doesn’t matter what you do—go out for dinner with your partner, take your kids to Disneyland, or donate it—but you have the obligation to know how to use it.
So, how can we achieve this independence in the best possible way?
I believe it’s simple: by making the annual income line as high as possible. This doesn’t necessarily mean working more hours, but rather working smarter.
To do this, I believe it is crucial that we all have multiple income streams. This doesn’t mean you shouldn’t invest; in fact, investing is an obligation today. What I’m saying is that you need to improve your relationship with money.
Believe it or not, before long, an AI or an intern will be able to do your job better than you. Companies are not charities, and if they know your job is expendable, they won't hesitate to let you go. That’s why it’s our responsibility to have multiple sources of income that complement our work and make the FIRE movement meaningful.
Here are the seven alternative income streams that make the most sense to me: