FI/RE and Inflation

Not everything in the Financial Independence, Retire Early (FI/RE) movement is as rosy as it seems.

In recent years, many of us have felt the impact of rising inflation.

This was driven by the COVID-19 pandemic, supply chain disruptions, and trade tensions.

(As a personal anecdote, relating to business generally, I witnessed at least two hawker stall owners in my city raise prices by 50% over a six-month period during the COVID-19 pandemic.  By the end of that 6 month period they subsequently closed from business.  They told me that cooking oil prices were skyrocketing.  Such are the effects of inflation on small businesses.)

Without proper financial planning—or without continuing to grow your wealth—inflation will erode your cashflows and force you to reconsider whether leaving your career early was the right choice!

Inflation is just one reason why financial literacy is critical. Even Robert Kiyosaki—an author often viewed as controversial—has his own strong views on early retirement.

He encourages readers to continue pursuing financial education as part of a lifelong journey of growth.  That would address the concern of inflation.

For those interested, I recommend Retire Young, Retire Rich on Kindle, which introduces the concept of early retirement. You can read reviews and purchase it here.