My Road to F.I.R.E as of March 2025

Current Stage: Financial Security

As previously shared in my post My Understanding of FIRE, I believed there are few stages to Financial Independence, Retire Early (F.I.R.E). I would confidently say that I have reached the Financial Security stage in my journey toward F.I.R.E. This means that my passive income from various streams is sufficient to cover my essential, non-negotiable expenses. These expenses include:

• Insurance Premiums – While many of us may never make claims on our insurance policies, their purpose is to protect against unforeseen circumstances. In a way, paying for insurance can be seen as 花钱消灾 (spending money to prevent disasters). Having coverage gives me peace of mind, ensuring that I am prepared for unexpected events.

• Utilities – Water, electricity, and essential services are unavoidable costs. Without paying for these, basic daily living would be disrupted.

• Service & Conservancy Charges (S&CC) – This is a fixed expense that cannot be avoided, ensuring the maintenance of common areas in residential estates.

• Phone Bill – Although mobile and broadband costs have become more affordable, they remain an essential part of modern living and communication.

With these necessary expenses fully covered by my passive income, I can safely say that I have achieved a level of financial security. However, this is just one step in the larger journey towards full financial independence.

Challenges in Reaching Financial Stability

Moving to the next stage—Financial Stability—is proving to be more challenging. The key reason? Lifestyle choices.

Unlike fixed expenses, my discretionary spending is highly flexible. What I eat daily, how I spend my leisure time, and the kind of lifestyle I maintain are all within my control. For example:

• I could choose to have cup noodles for lunch every day and make my own 3-in-1 coffee, keeping costs to an absolute minimum.

• On the other hand, I could opt for fast food or dining out daily, significantly increasing my monthly spending.

Because of this flexibility, I have yet to determine a fixed monthly budget that I need to sustain my chosen lifestyle. This is why I have not yet reached Financial Stability—the stage where my passive income is enough to cover not only my non-negotiable expenses but also my chosen lifestyle costs.

The amount required for this stage varies greatly depending on personal preferences. Whether I aim for an additional $1,000 per month or $3,000 per month in passive income depends on the lifestyle I want to maintain. Therefore, before moving forward, I need to assess and define what kind of lifestyle I truly desire.

Next Steps & Conclusion

To progress towards Financial Stability and eventually Financial Independence, I need to:

1. Define My Lifestyle Needs – Set a clear, realistic monthly budget that balances comfort and sustainability.

2. Increase Passive Income – Explore ways to enhance my investment returns, diversify income streams, and optimize current financial strategies.

3. Manage Lifestyle Inflation – Be mindful of unnecessary spending and ensure that any lifestyle upgrades align with my long-term financial goals.

4. Set Clear Milestones – Establish specific financial benchmarks to track my progress toward covering both essential and discretionary expenses.

In conclusion, while achieving Financial Security is a significant milestone, my journey is far from over. The next step requires conscious decision-making about my lifestyle choices and financial strategy. By carefully planning and maintaining discipline, I can steadily move towards full Financial Independence, where I no longer rely on active income to sustain my ideal way of life.

The road to F.I.R.E is not just about accumulating wealth—it is about designing a life that aligns with my values and aspirations. And I am excited to keep moving forward.