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Thrifty Germans look to escape the rat race early
BERLIN, June 27, 2018 (BSS/AFP) – Former meteorologist Lars Hattwig has
achieved the “frugalist” dream that is gaining ground in ageing Germany:
retiring in his 40s and living on the proceeds of a working life lived
sparingly.
“It was four years ago that I realised I didn’t need my salary anymore. I
didn’t have to work any more. So I quit my job,” the Berliner, now 47, tells
AFP.
Hattwig put himself through a sometimes punishing savings regime for 10
years and carefully invested the proceeds, giving himself the resources to
make the leap.
“For one or two years I was extremely tight-fisted” after the 2008 crisis,
he admits, as his share holdings lost some of their value before later
recovering.
“I avoided turning on the lights at home, I checked the meter regularly, I
bought the cheapest food,” he recalled.
“But that phase is over now.”
A craze for frugal living is spreading on German-language blogs and
internet forums, stoked by those already living the dream or people imagining
what might be if they could only scrape the cash together.
For example, each step of 29-year-old Oliver Noelting’s pilgrimage towards
financial freedom is chronicled in detail online.
“I can totally imagine that when I’m 40, I’ll say to myself: I’ve been
doing this for 10 or 12 years. Now I want to do something else,” the Hanover-
based computer programmer says, pooh-poohing the official retirement age of
67.
“My goal is just to be happy.”
– Making do with less –
Known as FIRE — “Financial Independence Retire Early” — in the United
States, where it originated, the motives of adherents to the frugalist
movement range from the ecological to the political or just personal
inclination.
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Enthusiasts are often middle class and lead simple lives with a focus on
health — and nary a cigarette to be seen.
For many, it’s about freedom from “existential fear linked to money”, like
anxiety over losing a job or unhealthy levels of stress that can lead to
burnout, says Gisela Enders, author of a book titled “Financial Freedom”.
Few adherents have any interest in cars, large flats or designer clothes.
“Do I really need all these things the consumer society wants to convince
me at all costs I can’t do without?” Enders asks.
Asking such questions is often a prelude to taking action.
“Frugalists live below their means for the long term, aiming to achieve
financial independence and in the end realise a specific dream or wish,”
Hattwig explains.
Resources to help seekers along the path are plentiful, meaning budding
ascetics don’t have to be financial wizards to reach their goals, says
Hattwig.
A top blogger in the US scene is known as “Mister Money Mustache” for his
keen sense for a good investment.
Hattwig too offers coaching on how to invest in financial products and real
estate — whenever he feels like it, and only for those who can pay for the
privilege although he calls it a hobby.
Others gather at “Financial Independence Weeks” (FIWE), regular community
meetings organised by a couple who used to live in Germany and moved with
their two children to Romania. Their gatherings draw up to 25 adherents,
according to Noelting.
– Outside the system –
No-one has compiled figures for the number of frugalists living in Germany.
“It’s a German thing: we don’t talk about money,” author Enders explains.
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At a time when Europe’s top economy is desperately looking for solutions on
how to pay for pensions after 2025 when the post-war baby boom generation
heads into retirement, raising the possibility of upping the retirement age,
the frugalists seem to have hit upon one solution to the demographic
headache.
But it’s a choice that provokes criticism over how a society with a
communal responsibility can continue to function if increasing numbers, who
have benefited from it by receiving an education for example, pay less, or
nothing at all, into the public social security, pensions and health
insurance pots.
Hattwig regularly receives messages from members of the public on his blog
complaining he is being selfish but dismisses them as an expression of
“jealousy”.
“Sure, I may have paid less into the pension system, but I don’t want a
state pension,” programmer Noelting says.
After escaping traditional working life, most frugalists look for new
goals, and often find themselves most motivated by voluntary work, says
Enders.
Rather than complain, “when 25-year-olds are saying to themselves ‘I want
to stop working at 40’, we ought to be thinking about the quality of working
life that our society offers,” she suggests.
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