Why build WeFIRE?
It’s a question I hear everywhere, at meetings, during social events, even in casual chats. Why build WeFIRE?
“How did you come up with the idea? What problem are you trying to solve?” people ask.
“What makes your product different?” others inquire.
Every time I get questions like these, it’s like an invitation to share a secret. I find these questions incredibly pertinent and worth addressing, which is why I want to start by introducing the story behind our mission.
1. Finance Impacts Life
Ever since I can remember, I’ve wanted to achieve financial freedom. Back in my younger days, I didn’t know the term ‘FIRE’ (Financial Independence, Retire Early), but the idea was there. I had this goal of becoming financially free by the age of 30. How? As taught by the conventional wisdom, it would be earning an advanced degree from some top university, landing some high-paying job and getting promotions. The tried-and-true path to success, right? So, that’s what I did.
I earned a master’s degree and found a job in a highly successful tech company. The cost of living was high but so was my paycheck.
But looking back now, I was all wrong. I could have become financially free a full decade earlier, when I was fresh from college. This is how: At that time, the city where I lived had reasonably priced real estate, only 300,000 for a three bedroom apartment. If I had taken a mortgage, monthly payment would have been around 1,000. But here’s the kicker – if I rented out the guest rooms, I could’ve made about 2,500 in rent. That’s a 1,500 profit every month, enough to cover all my living expenses in the city. In essence, had I been more financially aware, I could have achieved FIRE, my life goal, right after college.
Ironically, by the time I hit 30, with an Ivy League Master’s Degree, a stint at Lucent, and a much higher paycheck, I found myself further from FIRE than ever. Why? Because by then, the real estate prices had soared. My potential passive income from that investment wouldn’t have been enough to cover my living expenses anymore. I was back to living on paychecks.
As it turns out, I’m far from alone in these sentiments. Throughout my life, I’ve had the privilege to discuss this issue with a diverse range of people. From CEOs/CFOs, to regular folks trying to make a living, all of whom agree on one common sentiment: If only I started investing when I was younger, I’d have achieved so much more by now.
This realization led me and my team to a profound conclusion: the impact of financial management on an individual’s life can be enormous. Understanding money management is a vital life skill. Yet, it’s not something we’re taught by our parents, nor our schools. If we can help even one person, just one, we can make a substantial difference in their life. How many opportunities do we truly have to make a genuine improvement in the lives of others?
In a word, we could make a huge impact.
2. The Popularity of “Financial Independence”
In the past decade, the growth of this realization has been astonishing. Beginning as a fanciful notion limited to enthusiasts and extremists, FIRE (Financial Independence, Retire Early) has now bloomed into an undeniable cultural phenomenon.
Bold headlines clamor for attention on the front cover of major news networks and notable financial conglomerates. The New York Times, NBC News, and CNBC all reported on this trend as it gained momentum with the masses (source1, source2, source3). As quoted by Benefits and Pensions Monitor, “A recent survey conducted by Resume Builder revealed that 51% of Millennials and Gen Z advocate for lowering the retirement age” (source).
These articles, among many others, showcase the unmistakable public interest in the FIRE movement. Particularly during the pandemic, people had the opportunity to deeply reflect on their life choices. This societal shift towards prioritizing meaningful, fulfilling occupations over superficial work-life structures is the driving force. However, the traditional finance industry has gaps to serve this trend well.
Therefore, we’ve decided to step in.
- Harnessing the Potential of AI
Akin to fitness, financial health requires long-term effort. Although everyone hopes that, like Popeye, they can gain superhuman fitness after a single helping of spinach, healthy habits must be sustained over a lifetime to achieve good health. Similarly, financial independence won’t result from a few lifehacks or secret codes; it’s about crafting a clear plan and executing it with precision and discipline.
Additionally, executing such a plan involves considerable work. One must attend to all aspects of personal financial management, which spans earning, spending, borrowing, investing, and taxes. These activities require complex calculations and tedious data processing. It’s undoubtedly a lot to ask, especially as most of us work full-time to make a living. To keep abreast of all these demands is a full time job all its own, and one we don’t have the time for.
For ultra-high-net-worth individuals with, say, over $50 million, they can turn to private bankers from UBS or Goldman Sachs for help. However, this level of personalized service, while universally needed, has been limited to the privileged few.
This is where WeFIRE steps in. Thanks to significant advancements in AI technology, we are now able to bring this exclusive service to the masses.
Imagine having a Copilot that seamlessly integrates with your financial life. In case of an unusual expense, it effortlessly sifts through hundreds of transaction records to identify anomalies. It alerts you to upcoming bill payments to avoid late fees, and gently nudges you to curb expenses so you can stay on track.
Moreover, it replies to your questions with personalized answers. Say you have a question about how much you spent on a category of food, all you need to do is ask and AskCopilot will respond with your exact expenses, ordered by date. You can also ask more complicated questions, like “should I buy or rent?” and “find a better mortgage rate for refinance” for a more in-depth analysis on your spendings and your savings.
WeFIRE can serve as a trusted partner in your journey to financial independence, transforming daunting financial management into a streamlined, empowering process.
This is how we plan to help.
