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Playing with Fire Book Summary – July 2022

Author: Scott Rieckens

Short Summary
Playing with Fire (2019) is a self-help book that will allow you to become financially independent and live your passions instead of getting stuck in a day job. As you approach your income with the FIRE mentality, you will learn to save invest, and live the future of your dreams.
playing with fire book
Source: amazon.com

Detailed Summary

Most of us dream of a luxurious life where we have a car, a house a happy family, and early retirement. Because we want to spend that time pursuing our passions and making memories with our family. Scott Rieckens just like the rest of us was working day and night so that he could have this ideal future and one day he stumbled upon a podcast interview about the FIRE movement.

Through FIRE, he learned more about saving, low-cost investments, and retirement plans. In Playing with Fire book, he shares with us the useful insights he has learned as he joined this movement and changed his financial life. This book explains several ways to cut down expenses that are in fact easy to adapt, including investment options and retirement plans in detail.

 Taking control of your finances at any stage of your life is empowering. Better now than never. As you start to plan your expenses, spend wisely, and invest you will realize how much money you spend on unnecessary things. Whether you decide to lose your Spotify subscription or cut down your consumption of junk food, know that everything makes a difference.

Playing with Fire Book Key Points

It is normal for most of us to have a 9-5 job that will continue until we retire at the age of 60. The people in this category enjoy their work and most importantly they like the routine that such a work environment provides them with. Work during the day, go back home in the evening, have weekends off to enjoy time with friends and catch up with your social life, get several medical benefits and services as an employee and have a yearly vacation. What is there to hate, right?

So What Exactly is FIRE?

On the other hand, some people may not be okay with the idea lf working till they start to decay (literally). Some working people want to retire early without worrying about their expenses after retirement. So how can they retire earlier than usual and save up too? Well, you know the answer, through FIRE!

FIRE advocates a lifestyle that promotes mindful spending, saving, and investing. It caters to the major expenses looking in your future so that when you decide to retire you are not exactly freaking out.

Adapt FIRE and a Frugal Lifestyle

So how can you not? How much money will it require to work? No matter how much you earn right now, you can adapt the FIRE strategy into your life. Start by calculating your annual expenses. Include the housing, bills, groceries, etc. Now multiply this amount by twenty-five. The resulting figure is the amount you need to save in order to be fully financially independent.

 So how can you have this exact figure before you retire? Start with the very basic step. Cut down the unnecessary spending and adopt a more frugal lifestyle. Remember, this sacrifice is for a future that you desire so do not get disheartened. Remember these words by David Bache: “The fact is, none of us really has a choice: We are all playing the money game whether we want to or not. The only question is: Are we winning?”

Invest Your Money

Investing your money can be one of the greatest decisions you can make. Remember you cannot make the figure you require for your retirement plan by just cutting down costs and refusing to hang out with your friends. You will need something more than that because the amount you need is huge and this is where investment can be helpful. It will allow to build up your assets. The author recommends saving and investing about 50-70% of your income.

If you want to invest a big chunk of your income; you will need to carefully observe where you spend your income. You do not need to pay for the weekly newsletter just because it looks cool to have that subscription. Look, Observe, plan and cut down. The more you save the more you can invest. As a beginner, you would not want to invest your whole money or invest in a single thing. So look for low-cost index funds. Real estate, stock market, and entrepreneurial projects are recommended by Scott Rieckens.

Playing with Fire Book Quotes

“For traditional employment, don’t pursue your passion. Find a company that appreciates its employees and will provide challenging work for equitable compensation. Make the rest of your life about pursuing your passions.” –Scott Rieckens

“The general path to FIRE is to save 50 to 70 percent of your income, invest those savings in low-fee stock index funds, and retire in roughly ten years.” –Scott Rieckens

Playing with Fire Book Review

Playing with FIRE is a good book with financial advice for people of every income. You do not need a six digit salary to implement the ideas of the book. The book focuses on valuing passion and purpose over materialism.

It does not want you to retire and do nothing, it encourages you to have a significant amount of time without responsibilities so that you can live your dreams. The case studies in the book are bound to leave you inspired!

To Whom I Would Recommend Playing with Fire Book

  • To the twenty-two-year-old millennial who has just started earning and wants to secure his future financially.
  • To the thirty-five-year-old manager who feels stuck at his job and wants a plan for early retirement.
  • And to everyone who wants to become better at managing money and savings.

Link: https://amzn.to/3blofr7