Running My Own Race, Towards My Own Goals

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In the world of personal finance, the journey to achieving one's Financial Independence (FI) number is as unique as one's fingerprint.  Yet, it is easy to find ourselves caught in the web of comparison, measuring our progress against others who seem to have it all figured out.  This is especially the case when we are now near the New Year, where on 1st January, a wave of "amount of Central Provident Fund (CPF) interest collected" post will flood the finance community such as Seedly Personal Finance Community.

On other days, in Dividend Investment Telegram Group, we will have members showing the amount of dividends they have collected over the year(s).  Do not get me wrong.  Personally, I do not view these postings negatively.  Once a while, it is natural to feel a twinge of envy or self-doubt, whether I will be able to accomplish something similar, but more often than not, I enjoy participating in all these discussions and chats with all the members in the Telegram Group, and I view all these posts positively, as a form of motivation to myself and aspire to achieve what they had achieved someday, while at the meantime, learn what I could from all the members (not listening to buy or sell recommendations, but more on their methodologies like invest in good companies and do not trade in and out of the market excessively).  

However, the truth is that my financial journey is mine alone.  Mere comparison of the numbers are quite meaningless as what others need may not be what I need, and everyone's definition of the FI number is different.  Below are some of my thoughts on why staying focused on your personal goals and running your own race is the key to your own success.


1)     Your Financial Goals Are Unique to You

Your FI number is a reflection of your dreams, priorities, and lifestyle preferences.  For some, it might mean retiring early and traveling the world while for others, it could mean starting a small business or spending more time with family.

Comparison is irrelevant because your goals and circumstances are different from others.  What is more important is you craft out your personal priorities and work towards it.  If you are pursuing FIRE, do you aspire to achieve Fat FIRE, Coast FIRE, Barista FIRE, Lean FIRE or the traditional FIRE?  Different types of FIRE relate to different lifestyle in future, and it would be useful to define your own goals and let them guide your decisions.


2)     The Comparison Trap Slows You Down

When you focus on others, you are distracted away from your own progress. This can lead to lifestyle inflation if you are spending more than you like to “keep up” with others, even when it is not aligned with your values, or lead to burnout as you may be pushing yourself too hard to match someone else’s achievements, or even lead to frustration, because you are always looking ahead at someone else’s milestones and forgotten to celebrate your own mini-milestones that you have achieved.  Remember that financial independence is a marathon, not a sprint.  Comparing yourself to others can drain the energy you need to stay consistent.


3)     Progress Over Perfection

Every small step you take toward your FI number matters.  Saving your first SGD 1K or SGD 100K, receiving your first SGD 1K monthly dividends, maxing out your Medisave Account (MA) by achieving the annual Basic Healthcare Sum (BHS) limit, or achieving the Full Retirement Sum (FRS) in CPF are all victories worth celebrating.

When you compare, you might overlook these milestones and feel like you are falling behind by a large margin when you probably ain't.  Instead, focus on your own progress by tracking your net worth over time and celebrate when you hit certain financial goals


4)     The Freedom of Running Your Own Race

When you tune out the noise and stay focused on your own journey, you will find a peace of mind, because you are no longer chasing someone else’s version of success.  Instead, you are working towards a future that is meaningful to you.  I think what is important in this journey is to create a financial plan that aligns with your values, and surround yourself with supportive and like-minded people who respect your journey.  Personally, I found the supportive gang in the Dividend Investment Telegram Group.  Have you?


Final Thoughts: Stay the Course

Remember that the road to financial independence is not a competition.  It is about designing a life you love and achieving the freedom to live it on your terms.  Comparison will always be tempting, but it is a distraction.  Personally I have written here that my Barista FIRE number is SGD 2K/ month and FIRE number is SGD 3K/ month.  These numbers may not work for everyone but it will work for me.  At this juncture, I would like to give myself a pat on the back on achieving my Barista FIRE number this year in 2024.  I will continue to strive towards my FIRE number, and at the same time, delay my Barista FIRE goal by a couple of years as I believe I will need some form of buffer as per what I have discussed here.  The timeline I give myself is to achieve the goals before I reach 45, but that is just for me.  The only person you need to outperform is the person you were yesterday.  Run your own race, and you will cross the finish line stronger, wiser, and fulfilled.  Barista FIRE, here I come...!

Comments

  1. Hello World26 December 2024 at 18:33

    Totally agree that comparisons without context are meaningless. The person who is publishing his dividend income may be several years older than you and had a multi-year headstart. It is maybe more useful to understand someone's journey and philosophy rather than the 'end point' which is just a number.

    The Dividend Investor Telegram Group sounds like a nice community though of late I have been buying, MSCI World, S&P500 and US stocks so I probably wouldn't fit in. :)

    ReplyDelete
    Replies
    1. BFIRE26 December 2024 at 19:40

      Hi Hello World,
      Thanks for reading. Yup I am basically reading many other blogs to get inspiration and motivation to work towards my goals too, though I often get stressed out by the numbers I see like 1M, 2M, 5M or even 10M. Personally I am no where there, but I know my circumstance is different and with geo-arbitraging in mind, I will need less.
      Yup, having a support group with like-minded people helps, and I believe there are groups for S&P500 too! Just got to look for one that does not have nasty complains and arguments inside. The world does not need more negativities.
      Cheers and Happy New Year!

      Delete

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