Many have heard of it. Some people understand the meaning and some people don't. In this
post we discuss the F.I.R.E movement, if it's achievable for an "everyday person" and if it appeals to you?
What is F.I.R.E?
F.I.R.E is an acronym for Financial Independence Retire Early. It was first "discovered" or thought of in a 1992 book titled "Your Money Your Life." Although you might think the F.I.R.E movement is relatively new, it is not, however its popularity has only surfaced more and more thanks to the rise of technology increasing the spreading of information.
The movement involves extreme savings in order to maximise your investment capabilities. The overall result is hopefully your investment portfolio or accounts are large enough that you can live off the income or small withdrawals from the investments.
The movement however does assume one thing and that is you have some sort of income. Whether this be a full time, part time or casual position. However it is ideal to have a full time job!
There is no real set amount of money you have to save or invest (every pay check or month) in order to be apart of this movement as everyone's job income is different.
However a key point of the F.I.R.E movement is that the more money you are able to save and invest the faster you will be able to retire and live off your money. Hence the greater your income in general will result on retiring early quicker. There are plenty of incidents where frugal living and heavy investing has led to people retiring in their 20's and 30's! Sounds good doesn't it! But is it doable for everyone?
Is the F.I.R.E movement realistic and achievable?
Absolutely! But like everything it is not easy. The hardest hurdle to overcome for people who are looking to retire early is frugal living. Frugal living is not easy for the majority of people. Dramatically cutting your expenses (especially your "fun" money) people can find a very hard task. This involves cutting and reducing things out of your life like going out for dinner or buying that morning coffee you always get.
But aside from increasing your level of frugal living the best thing you can do is create a solid mindset towards achieving your goals. This involves huge amounts of discipline to be able to set aside and save huge percentages of your income. This can be as much as 70% of your income going straight into investments.
Is the F.I.R.E movement for you!?
Being financially independent and retiring early appeals to everyone! Who wouldn't want to retire at the ripe age of 25 and enjoy the extra freedom to live life on your own terms!
Although there is sacrifices you have to make as briefly stated above. It is not easy. If living frugally is an easy concept to you however and the idea of investing gets you excited the F.I.R.E movement is perfectly suited for you!
However living frugally does not appeal to everyone and I for one completely understand it. Life is short! And living it to the fullest, enjoying every bit of it is a priority! The idea of frugal living can scare some people who want to enjoy life why they can. And for this reason I would say the F.I.R.E movement is not for them.
However this does not mean investing and becoming financially literate can just be forgotten. You can easily live comfortably whilst investing to build wealth for an early and better quality retirement. In fact this should be everyones financial goal!
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