Let's rewind a bit…
Full disclosure here: I used to think I had this whole FIRE thing figured out.
And ye know what? You probably did too.
Think about it. The traditional FIRE path seemed so straightforward:
- Stack your money in index funds ✓
- Watch that compound interest do its thing ✓
- Maybe throw in some bonds if you're feeling fancy ✓
- Follow the 4% rule ✓
- Financial freedom = achieved
(or so I thought…)
Here’s my take on showing that leaving your wealth in cash or traditional investments is just like leaving an ice cream out in the sun – it is melting away.
If you've read about my early experience with traditional FIRE, you'll know exactly where this is going.
Back in 2023, I wrote about how Bitcoin could be the key to achieving true financial independence – little did I know how deep this rabbit hole would go.
The Moment Everything Changed
But here's the thing – I've been diving into something that's properly freaking me out.
And if you've followed my journey dealing with financial anxiety, you know I don't say that lightly.
Picture this…
I'm deep in some monetary policy research (exciting stuff, I know 😅), when I stumble across something that makes my stomach drop.
The hurdle rate is 11%.
Let that sink in for a minute, more details here.
Traditional FIRE Math:
- 7% Returns
- 3% Inflation
- = 4% Safe Withdrawal Rate
Reality Check:
Need: 11% Just to Stay Still
Traditional FIRE Portfolio: Not Enough
Your Purchasing Power: Decreasing
Why This Matters
Sound familiar? Here's what this actually means for those of us pursuing FIRE.
The Traditional Assumptions:
- "Normal" 3% inflation (those were the days…)
- Reliable market returns
- A stable financial system
- Your purchasing power staying intact
But here's what's actually happening:
- Money printer goes brrr so your fiat money is not sound money
- Asset prices make no sense anymore
- Everything keeps getting more expensive
- Your purchasing power is taking a beating
Here's what keeps me up at night:
Looking back now, I realize how naive I was about traditional FIRE.
Ye know those moments when you discover something that changes everything? This was mine.
- Most assets will barely keep up with real inflation
- Your "safe" withdrawal rate might not be safe at all
- Traditional FIRE calculations are built on sand
- And we haven't even talked about taxes yet…
Well, buckle up, because this is where it gets interesting.
Continue reading my thoughts on building real freedom here
What is SovFIRE?
Let me introduce something I've been working on…
Full disclosure: Yes, I'm actually trying to make "SovFIRE" a thing right now. 😅
And I know what you're thinking:
- "Oh great, another FIRE variation…"
- "Who does this guy think he is?"
- "Did we really need another acronym?"
But here's the thing – this isn't just another random FIRE spin-off.
Look, I'm just a random engineer sitting here trying to figure this stuff out. I didn't exactly plan on creating my own FIRE movement – but after what I've learned about money printing and inflation, I couldn't just keep quiet.
Why We Need Something Different
Traditional FIRE is like building a house on someone else's land. Sure, you might end up with a beautiful house, but you're still at the mercy of the landowner.
Think about it:
- Your money is in someone else's banks
- Your investments are in someone else's companies
- Your food comes from someone else's systems
- Your energy relies on someone else's grid
Sound familiar?
The SovFIRE Difference
SovFIRE is about owning the land, the house, AND having a backup plan when the neighborhood goes to shit (pardon my engineering terminology 😅).
What makes it different:
1. True Independence
- Not just financial
- Not just physical
- Not just systemic
- But all three working together
2. Real Resilience
- Multiple backup systems
- Diverse skill sets
- Redundant resources
- Actual control
3
. Practical Sovereignty
- Start where you are
- Build what you can
- Learn as you go
- Progress over perfection
Who is SovFIRE For?
You might be ready for SovFIRE if:
- Traditional FIRE feels incomplete
- You're worried about systemic risks
- You want more control over your life
- You're ready to build real independence
And here's the beautiful part – you can start right where you are.
Whether you're:
- Living in an apartment (like me)
- Already on your FIRE journey
- Just starting to question things
- Looking for more security
There's a place for you in SovFIRE.
Ready to Learn More?
In the next section, I'll break down the three pillars of SovFIRE and show you exactly how they work together.
But first, let me be clear: This isn't about becoming a doomsday prepper or a crypto maximalist. It's about building real independence in a world that's increasingly fragile.
Let's dive into how this actually works…
The Three Pillars of SovFIRE
Think of these pillars like a three-legged stool – if any one of them is weak, you're gonna end up on your arse.
1. Financial Sovereignty
This isn't just about having money – it's about having SOVEREIGN money.
What do I mean by sovereign money?
- Money that can't be printed away
- Assets that actually preserve purchasing power
- Income streams you actually control
- Wealth that transcends borders
Looking back now, I realize how naive I was stacking pounds and dirhams, watching them get devalued in real time…
Current Focus Areas:
- Building Bitcoin position (after learning some expensive lessons 😅)
- Creating multiple income streams
- Developing location-independent work options
- Learning about international banking
2. Physical Sovereignty
Now, this is where I have to laugh at myself a bit.
Here I am, sitting in my house, probably the least physically sovereign person you could imagine. But here's what I'm working towards:
Key Components:
- Energy independence (yes, even in an apartment)
- Food security (currently killing some herbs on my balcony)
- Essential skills (turns out YouTube tutorials count as education)
- Real-world resources (not just numbers on a screen)
Current Projects:
- Small-scale food growing experiments
- Basic DIY skill development
- Energy system research
- Property planning for the future
3. System Sovereignty
This is the big one that ties it all together.
What we're talking about:
- Being independent from broken systems
- Having backup plans for your backup plans
- Building networks outside traditional structures
- Creating your own personal infrastructure
Current Focus:
- Building redundant communication systems
- Creating backup power solutions
- Developing alternative transport options
- Establishing support networks
How These Pillars Work Together
Here's the beauty of the three pillars:
When Financial Sovereignty supports Physical Sovereignty:
- Your Bitcoin gains fund solar panels
- Multiple income streams support skill development
- Financial freedom enables property purchases
When Physical Sovereignty supports System Sovereignty:
- Your own energy powers your nodes
- Food production reduces system dependence
- Skills create network opportunities
When System Sovereignty supports Financial Sovereignty:
- Your backup systems protect your wealth
- Networks create new income opportunities
- Infrastructure supports financial independence
Current Progress Report
Let's be real about where I'm at:
Financial Sovereignty: [███—-] 20%
- Some Bitcoin position built
- Starting to diversify income
- Still too exposed to traditional systems
Physical Sovereignty: [——–] 0%
- Basic skills in development
- Small-scale experiments being researched
- Long way to go
System Sovereignty: [——–] 0%
- Initial backup systems in research
- Network building in progress
- Core infrastructure planning
Next Steps
Remember: Every step toward sovereignty matters, no matter how small.
Ready to start your own sovereignty journey? Drop a comment below or join the newsletter to follow along with my experiments (and occasional failures).
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