10 Feb Should I stop working?
FIRE(Financial Independence Retire Early) is a trend in the world today where it focuses on being frugal so that you can retire early and do something you like. I met a customer recently whereby he is a highly paid employee and have invested in various assets ranging from unit trust to stocks as well as properties. The reason he came to me is he is tired of working and wanted to retire early
My take to this. If you are young and working is your only source of income, sure it’s a no brainier question. You have to work otherwise you do not have an income. The complication comes when you have a invested in various asset and working becomes optional.
Let’s put it from a different angle. Do you like doing what you are doing? If the answer is yes, then why not? You can take another approach whereby you no longer work for money but for other reasons such as job satisfaction or personal challenge. If you feel the job becomes to taxing you can opt for a less stressful job but my take, is if you enjoy what you are doing and money is not a question, do what you like instead of retire early.
Another angle. How about for those in a border line in terms of financially. Your assets are generating passive income to sustain your lifestyle. Should you work or retire early? I would say work. Don’t forget your job is actually an asset to me too. You/your parents have invested thousands so that you have the paper qualification where you are currently holding to help generate income. I know job is not an asset categorized by financial gurus, but unless you are very clear what you want to do continue working as it’s put money into your pocket. (Click here to view the other assets categories in my other blog) Of course the disadvantage is it takes up your time to generate income but again, if you do not have a clear direction yet, GO WORK!!
Don’t get me wrong that my advise to you is just having 1 asset(your job) is good enough. I am a total supporter of diversification and passive income but my take is your job is 1 of your asset to help generate income and you have invested heavily on it. If you stop working, you are actually loosing 1 asset. Unless if you have multiple income stream and you have a clear direction what you want in life, you might want to continue working. Finance is just 1 part of life but you might also want to plan what you want to do instead of just retire early and do nothing.