This way you have a million in your pocket by the time you're forty

FIRE stands for financial independent retire early. A movement that seems to be growing, but how does it actually work? We asked Puck Landewé (33), the founder of Fire for Women, to tell us all about it.

Puck, what is FIRE actually?
‘FIRE means for me not retiring at forty, but being free in the choices I make and being financially independent. For someone else, it might mean starting to retire early, or working only two days a week for the rest of your life. It just depends on what financial independence means to you.’

But: how do you start?
‘For me, it was a strange process. I had a busy job where I earned a lot. Suddenly, I was home for months with mononucleosis, my mother passed away, and my relationship ended. I remember lying in bed thinking: every hour that passes, I can’t get back. You only live once. I quit my job, took a sabbatical year, and became a bit obsessed with the FIRE movement, which was also a part of my grieving process. It was a movement in Silicon Valley, with people living very frugally and investing like crazy. That’s how you build wealth to be able to retire later. They did everything to stop working at a young age. I read everything I could get my hands on about becoming FIRE and investing. Which is also necessary, because you have to get really angry at the beginning to do it.’

Saving, spending less, investing… What is wise?
‘It starts with insight. What comes in and what goes out? That difference should be as large as possible, and you can save or invest the money. It gives peace of mind to save a buffer of three months, which ensures financial independence, for example when a relationship suddenly ends or when you find yourself without income. Of course, there is a maximum to what you can save, but there is no limit to earning more. It has been drilled into us that we need to focus on saving. When the media talks about women and money, it almost always concerns saving, not about the fact that there is room and opportunities to earn more money. By gaining insight into your finances, a certain minimalism also comes into play. You look at your expenses differently and at that hundred-euro dress. I always advocate for earning more; that can be through salary negotiation or a side hustle, and with that money, you can invest again.’

And what about living in the now and enjoying?
‘I am very much about enjoying the now because I know it could be over tomorrow. That’s why I choose balance. I could invest much harder, but I also want to go out for dinner sometimes, buy flowers, and take a trip. By the way, I also enjoy investing money, so it’s the balance between enjoying now and being smart.’

But investing, how does that actually work?
‘Investing is fun and much easier than I thought beforehand. It’s such a mysterious world with men over fifty in suits driving Porsches and speaking in jargon. I also received warnings. Would you really do that, you could lose all your money, you don’t know how it works. Friends looked at me as if they saw water burning when I asked them about investing. I opened an account with a broker, bought shares, and really delved into it. As a result, my interest in investing has grown even more. You can make investing as wild as you want. It can be in the stock market, in a nice bag, or in whiskey. You have money and you buy something with the idea that you will gain financially from it in the future. Make sure you have basic knowledge. How does it work? What are the principles? And are there rules? It’s just like a diet: you have to get a little angry and read up on what you’re doing. Make a personal plan and keep your goal in mind, that’s crucial.’

What mindset do you need to have to become FIRE?
‘Having that goal. Do you want twenty thousand euros for a world trip, do you want to buy a house, do you want to retire early? I want to have a million in assets by the time I’m forty, which is why I invest in the stock market and in real estate. This year, I bought my second property, and I want to do that every year. I have been intensely involved with money for two and a half years, which now gives financial peace. Everything is running, and as a result, my goals are shifting. Now I want to focus on Fire for Women, write a book, and learn to play the piano. In the meantime, I invest every month in the stock market. That has become as normal for me as paying my health insurance.’

Is thinking so important?
‘Yes, if you keep thinking that money is for bad people or superficial or that someone else has less because you have more, then it’s not going to work. I believe in handling money in a relaxed way. Money is only unimportant if you have first made it important. Think about what you think of money and why, and detach it from your personality. You are who you are, whether you earn a thousand or ten thousand euros a month. Money opens doors and gives options; no one has ever become happier from poverty.’

Want to know more about Puck and becoming FIRE? Check out Fire for Women.