Are you an Upholder, Questioner, Obliger, or Rebel? Take the quiz to find out!

I’m currently reading Gretchen Rubin’s Better Than Before: What I Learned About Making and Breaking Habits–to Sleep More, Quit Sugar, Procrastinate Less, and Generally Build a Happier Life.  Many of the principles in her book can translate to the world of personal finance.  Today I’m writing specifically about her Four Tendencies framework.

The idea behind this framework (which is also the subject of her latest book) is that we all face two sets of expectations:  outer and inner.  Outer expectations are those placed on us by others, such as family, friends, bosses, and society in general.  An example would be a due date for a big work project.  Inner expectations are those we place on ourselves, such as setting a New Year’s resolution.

How she describes the framework in her own words:

Depending on a person’s response to outer and inner expectations, that person falls into one of four distinct types:

Upholders respond readily to both outer expectations and inner expectations

Questioners question all expectations; they meet an expectation only if they believe it’s justified, so in effect they respond only to inner expectations

Obligers respond readily to outer expectations but struggle to meet inner expectations

Rebels resist all expectations, outer and inner alike

If you want to know your tendency, she has a quick quiz you can take on her site.

I am an Upholder with Questioner tendencies.  If I commit to something, I don’t have problems sticking to it.  Most of the time I’m a rule follower, but sometimes I question external expectations if they don’t make sense.

Some observations on this framework and it’s intersection with personal financial habits:

  • FIRE folks are impressively goal oriented; I would guess that most do not have a hard time meeting inner expectations, or if they do, they have figured this out about themselves and created hacks to make themselves accountable.
  • I envision the most hardy FIRE people – the Mustachians – as Questioners.  They challenge societal expectations.  You don’t have to work until you’re 65 (or even 55!)!  Of course you can save 70% of your income!  (or maybe they are Rebels?)
  • According to Gretchen’s survey results, Obliger is the most frequent tendency.  External accountability helps obligers meet goals.  Just as an obliger might benefit from hiring a personal trainer to form an exercise habit or joining Weight Watchers to lose weight, an obliger seems like a good candidate to work with a financial planner who will help keep him/her accountable to financial goals.  Alternatively, sharing goals publicly (such as on a blog) or with a trusted friend could also serve as a way to provide accountability.  Or perhaps the Frugalwoods Uber Frugal Month Challenge might create the sense of community that would inspire an obliger?

What is your tendency?  How does it impact your financial habits?

FIREd up about the Flexibility of Financial Freedom

I was comforted to recently read this post on Adventure Rich where Ms. Adventure Rich admits that they don’t have a set FI target date or amount.  I felt some imposter syndrome setting up a FIRE blog when we don’t have an FI date or number, either.

But in reality, this isn’t a blog about me retiring early.  Ideally I am done “working” before 65, but I’m not going to be bowing out of the workforce decades early.  What really interested me in the FIRE community is the Financial Independence facet.  Money = Financial Freedom.  So rather than having a FIRE goal, it is really a Financial Freedom goal, similar to the FFLC (Fully funded lifestyle change) espoused by Slowly Sipping Coffee.

So what does Financial Freedom mean to me?

Career Flexibility

Most days, I actually don’t mind working; I enjoy the mental challenge and the social interaction.  I have worked for my company for a long time and have some great benefits, generous PTO, and a manager that respects me and doesn’t micromanage.

But I also don’t want to be tied to a job because it pays a lot, or have to work on someone else’s schedule for the next 25 years.  Companies get acquired, managers move on, job responsibilities shift, and sometimes great jobs become stifling or downright horrific.  Financial freedom means that either I or my husband can choose to quit a job if one of us lands in a bad work situation; or that we can weather the storm if one of us gets laid off.  Working towards a financial freedom goal also means that we will have the flexibility to shift careers, work part-time, take a sabbatical from paid work, or start a business.

Time

Maggie at Northern Expenditure wrote:

“…it is so unfair that the most important working years coincide with the most important years for our children. Why did parents have to spend so much time trying to build careers at the same time their children were trying to figure out how to walk and talk and learn?”

We had our daughter at the beginning of this year.  I don’t want to sacrifice these early years we have with her just to retire a few years before she leaves the nest. For me, saving and investing means we have the financial flexibility to make lifestyle changes that align with our values – spending time with our daughter.

Overcoming Uncertainty

My dad died unexpectedly at 52.  My mom is a cancer survivor.  I’m 39 now, and even though I work to maintain my health, there are things outside my control that could lead to physical limitations as I age.

On a trip to Italy a few years ago, my friend and I stayed at the property featured in the photo at the top of this post, in one of the towns in the Cinque Terre region.

Our room was at the VERY TOP.  So.many.stairs. There is often a level of physical fitness that is required for the type of travel I enjoy, such as sightseeing or hiking through the wilderness.  If I postpone all this traveling until I retire, my physical body may not be quite as willing to cooperate.

Meaning

Do you find meaning in the work you do every day?  I’ve spent my career in the corporate world.  I care about the overall mission of my company, and believe we are doing good work.  But it’s usually hard to find meaning in the day-to-day of the actual job.   I think quite a lot of people in large organizations feel this way, especially those who are seeking FIRE.  Financial freedom means the option to pursue ‘work’ that provides meaning and fulfillment, rather than just focusing on a paycheck and benefits.

What are your reasons for pursuing Financial Freedom?

What is FIRE, anyway?

 

I sent a friend of mine a link to my new, shiny blog and she asked if FIRE is an acronym.  Why yes, yes it is!

For the uninitiated, the acronym FIRE stands for Financially Independent, Retired Early.

Kristin Wong has a new post over on Lifehacker that provides an overview of the FIRE movement.  In essence, by optimizing finances, a lot of bloggers in this community have been able to save upwards of 70+% of their income which has allowed them to retire in their 30s or 40s.  (Mr Money Mustache’s post on the math of early retirement is a mind-blowing must-read.)

Why has this movement been so appealing to me?  This quote explains it well:

“Financial independence ultimately means that you can shape your life without taking money into consideration,” said Tanja Hester, a recent FIRE graduate and founder of the website Our Next Life. “Most of us have to consider our finances in nearly every decision we make, or maybe even make decisions solely based on money. But once we reach financial independence, we get the freedom not to be bossed around by what we earn or what we have saved.”

 

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