SaveWhen it comes to financial independence, HOT has nothing to do with your appearance. After all, the abbreviation stands for Healthy (or Happy), Opportunity rich and Time rich. The HOT movement is all about finding an optimal balance between work, health and leisure. Spaargids.be examine how they approach this in concrete terms.
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More than 1 in 3 employees struggle with problematic stress, according to the most recent study by the Social and Economic Council of Flanders (SERV). Many people shudder at the thought of having to work five days a week until they are 67. In response, various counter-movements arise, often condensed into a smooth pelvic abbreviation. The supporters of the FIRE (Financial Independence Retire Early) philosophy, for example, believe that it is possible to retire at the age of forty-five. This is accompanied by a spartan savings regime and the hope of high investment returns.
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20 years before retirement date? This is how you get it done according to the FIRE movement
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find balance
The milder HOT is more about balance. The movement does not have a concrete retirement date in mind, but advocates making targeted choices during your career. The target? A more meaningful and happy life with less stress. So you don’t necessarily strive to get rich, but you do want to enjoy as much as possible along the way.
Exactly how that trajectory looks like is different for everyone. A popular choice is to work one day less to spend more time on your family and hobbies. HOT supporters also believe that you should resign if you no longer feel happy at work.
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Frugal Lifestyle and Passive Income
To achieve HOT status, a frugal lifestyle is desirable. Ideally, you set aside a nice amount every month, which gives you, for example, the time and luxury to look for a dream job calmly and free from financial pressure.
HOT also asks that you generate passive income. If you park your money in a savings account with the statutory minimum interest rate of 0.11%, you lose purchasing power every month. It is therefore important to look for alternatives, such as savings accounts with a higher return, investments or real estate investments. It goes without saying that a higher potential return usually also comes with higher risks.
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Tip: Compare the different savings rates on the market here
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Make the bill yourself
Anyone pursuing HOT will therefore have to foot the bill for themselves: how much do I give up if I work one day a week less and how can I compensate for this? What are my money worth today and are there opportunities to improve that return? What expenses can I save on?
Curious how others approach it? You will find numerous blogs online, such as www.vanhernaarhot.com and www.thepursuitofhot.nl.
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