What is F.I.R.E?
F.I.R.E stands for financial independence, retire early. It is a movement dedicated to extreme budgeting and investing that allows them to retire far earlier than traditional budgets and retirement plans.
How financial independence, retire early works.
The roots come from a 1992 best-selling book called "Your money or Your life" wrote by Vicki Robin's and Jor Dominguez. The idea to get into the mindset is where every expense is compared to the time spent at work in order to earn the purchase.
Many people aim to save upto 70% of their paycheck and once reached approximately 30 times their yearly expenses, often roughly 1 million, they may quit their day jobs or completely retire from any form of employment altogether.
To cover their living expenses after retiring ar a young age, FIRE followers make small withdrawals from their savings/investments, typically around 3% to 4%.
Types of FIRE.
Within the FIRE movement there are several styles.
"Fat FIRE" refers to an individual with a motor traditional lifestyle who saves more than average retirement investor.
"Lean FIRE" refers to an individual who adheres to a minimalist living and extreme savings.
"Barista FIRE" refers to followers who have quit their traditional 9-to-5 job but are still has some form of part time work to cover expenses that would otherwise erode their retirement fund.
Anyone is able to achieve FIRE if they are able to focus, even be able to save and invest a sizable amount if you put your mind to it.