Financial Independence, Retire Early by 30s | Behind The 1%

Estimated reading time: 6 minutes

What’s it like to achieve early retirement in your 30s? I interviewed Warren Chan, the co-founder and former CEO of ParkEasy (now acquired by Shell), on his journey to Financial Independence and Retire Early (FIRE) after 10 years of hard work and dedication.

We’re kicking off our new series, Behind the 1%, where we dive into the stories and strategies of high achievers. In this blog, I’ll break down what Financial Independence, Retire Early (FIRE) is all about and share 5 key takeaways from our very first episode. But before we get into the details, let’s talk about what Behind the 1% is all about.

What is Behind the 1%

Behind the 1% is a series of interviews with the top 1% to uncover the success secrets the 99% are missing.

From these interviews, we’ll explore the inner workings of industry experts and thought leaders, delving into the stories behind their successful businesses. Ultimately, these conversations will provide you with exclusive insights that you may not have encountered before.

Episode 1 – Financial Independence, Retire Early by 30s

In the conversation, Warren has shared about his path to FIRE and his life now in early retirement.

• Is it possible to retire early in Malaysia? 
• Is the FIRE life really worth the sacrifices? 
• Is the FIRE lifestyle really as good as it sounds? 

Everything you’ve been wanting to know about FIRE is right in the conversation.

If you have any questions for Warren → https://www.reddit.com/r/WarrenChan/.

Let’s dive into the 5 key takeaways from this episode!

5 Key Takeaways

What is Financial Independence, Retire Early (FIRE) ?

In general, Financial Independence, Retire Early (FIRE) refers to a lifestyle where people focus heavily on saving and investing to achieve the goal of retiring earlier than the traditional retirement age and budget.

From Warren’s point of view, he mentioned that there are two types of FIRE:

1. Your plan is to have just enough money to last until the end of your life, and leaving nothing behind at the time you pass away.
2. You want to grow your nest egg in a way that allows you to pass it on to future generations.

Nest Egg (in financial terms): refers to the savings and investments you rely on for financial security, especially during retirement.

Goals and Strategies to Maintain FIRE

During the conversation, Warren shared that he carefully monitors his budget and setting a specific monthly spending limit to ensure his passive income consistently outpaces his expenses.

His investment philosophy centers around long-term holding and maintaining diversification to ensure financial stability. Therefore, even as a millionaire, he has also reinvested a huge portion of the money from the sale of ParkEasy into ETFs (more specifically VWRA, the FTSE All-World Units ETF (USD-Accumulating)), to leveraging his wealth to grow further.

Also, he still think twice when it comes to the spending of money. With this budgeting, the importance and advantage it bring to you is you will actually tend to do decision that matter to you. Most importantly, don’t spend lavishly.

Is Starting a Business the Path to FIRE?

Warren believes startups aren’t the only path to achieving FIRE. In fact, he says the safest approach is climbing the corporate ladder, earning a steady paycheck, spending below your means, and saving consistently to grow your nest egg. Tracking your savings can also help you stay motivated.

As compared to the safest approach, startups in fact are risky where 9 out of 10 fail. Warren stresses the reasons why this happened it’s not always about hard work or intelligence, but just the odds of success are simply slim. Therefore, he’s grateful for his own success of startup, but at the same time he acknowledges it’s not a path for everyone.

However, this doesn’t means you can’t do startup. For those pursuing a startup, Warren advises being financially wise. The most important thing is to build your business to a point where you can pay yourself a market-rate salary instead of just surviving on the bare minimum. You can just treat yourself like a regular employee, where then you save your salary, and grow your nest egg. Ultimately, if your startup succeeds, it’s like a bonus for you as a shareholder, but not something to rely on.

In sum, Warren recommend you views FIRE as a long-term goal. For most, a steady career and disciplined savings are the most reliable way to achieve it.

What Does the 1% Know About FIRE That the 99% Don’t?

Warren shared an important distinction between knowing something in theory and actually experiencing it in practice.

He explained that investments can generate passive income that exceeds active income, which was a key realization for him. Instead of constantly chasing ways to increase his active income, he focuses on growing his capital.

Unlike active income, which requires ongoing work, capital generates money automatically and continuously. For him, building capital and by extension, passive income is the ultimate path to financial freedom.

According to Warren, this is what the 1% truly understand. They don’t think about how to earn a bigger salary, but they think about how to generate higher returns. This shift in mindset from working for income to growing wealth through investments is what sets them apart.

Misconceptions About FIRE

1. FIRE is Only for the Privileged Few

Many people feel inadequate when they see others achieving FIRE, assuming it’s unattainable for them. Warren illustrated this with a story from the YNAB podcast: The host noticed an elderly woman swimming incredibly fast but later realized she was using swim fins. The point is people often miss the “hidden advantages” that help others succeed.

For Warren, he acknowledges his own privileges. His parents were financially stable, so he didn’t need to support them or cover medical bills. They also paid for his university education, leaving him debt-free. Hence, if his startup had failed, Warren knew he could fall back on a corporate career.

The key is to recognize that everyone has a different starting point. Instead of comparing yourself to others, focus on your own circumstances and progress at your own pace.

2. Retirement is Boring

Another misconception is that retirement means having nothing to do. Warren strongly disagrees as he pointing out that starting and running a business often forces people to neglect other important aspects of life, such as health, relationships, and personal well-being.

On the other hand, retirement offers the freedom to prioritize these areas. Whether it’s eating healthy, exercising, spending quality time with loved ones, or pursuing hobbies, there’s always something meaningful to focus on.

Conclusion

Throughout the conversation, it becomes clear that FIRE doesn’t mean retiring with nothing to do. Instead, it’s about having the freedom to focus your time and energy on what truly matters to you without the burden of financial pressure. As Warren put it, retirement isn’t the end of your life, it’s the beginning of a new chapter, one where you can pursue your passions and live life on your own terms.

Checkout the YouTube videos to gain deeper insights into the FIRE lifestyle!

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