Book Talk: Early Retirement Extreme by Jacob Lund Fisker

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Another title which has shown up on almost every personal finance reading list is Early Retirement Extreme by Jacob Lund Fisker. I can certainly see why that is, although it's very different than I was expecting. If you're looking for a step-by-step guide to financial independence, this book is not it. Instead, if you want to learn more about how our society really works and the thinking behind financial freedom, absolutely pick this one up.

Early Retirement Extreme is more about philosophy, thinking, and strategy than it is about money. Of course, there are discussions of money (earning, saving, and investing), but the real focus is on how society views money and why we need to go against the grain in order to achieve financial freedom and freedom from the system.

"We're all different and it's up to each of us to develop, grow, and walk our unique path. This is what it means to be human. One thing is certain, though: conspicuous consumption is not a natural state for all of us."

Fisker encourages us to not be a slave to consumer culture. We really don't need everything that society, advertisers, and our peers tell us that we do. We can live on much less, save much more, and retire much earlier. As the title suggests, some of his ideas are quite extreme. Such as spending no more than $300 per person on housing. I pay $400 a month to live at home! If I follow his advice, I'd need to move out and find something cheaper! I'll admit that I'm not ready to be that extreme.

"Learning must become a habit that is applied to all aspects of life before it can be said that a person is truly an educated person. This means that learning never stops."

I did really love his advice to expand our skills. We don't need to hire professionals for every single thing. We don't need to buy gadgets for ultra specific tasks. We just need to learn how to do things ourselves. This applies to household tasks, as well as hobbies, and job skills. I know there are a lot of skills that I'd love to learn, so why aren't I pursuing them?

"If you don't know anything about investing, make it a point to learn! It will be your new financial function in the world. There's no hurry."

I also liked how even though the main objective is to retire "early", there's no rush. We all have different circumstances and starting points. But we can all get there once we begin the process.