Financial Independence, Retire Early. Sounds good right?
Yet, what is the Fire movement? It’s basically a community of people who are maximising their savings and investing by intentionally decreasing there expenses and increasing their income with a sweet and simple formula to retire early.
What is the formula?
Simply put, It’s saving, 25 x your annual expenses and living off the safe withdrawal rate of 4% from your investments which will equal your annual expenses giving you Financial independence!
Let’s show a quick example.
Let’s say your yearly expenses are £20,000 a year. So £20,000 x 25 = £500,000, then you can live off 4%
Sounds exciting, right?
So is it easy? Of course it’s not. It’s simple but not easy.
You have to be smart, determined and super focused to achieve FIRE.
Fire is extreme, yet people who retire in their 30’s, 40’s and 50’s must have been extreme/super focused to achieve FIRE.
Several things you need to do to achieve FIRE.
• Pay yourself first, at least 10%.
• Save an Emergency fund
• Eliminate ALL DEBT!
• Decrease expenses
• Increase income
• Save and invest over 50% of your income.
• Reach your FIRE target and Retire Early!
Above are just bullet points of what’s needed to achieve FIRE and I’ll be going more in depth in future posts.
While FIRE is an extreme concept, what’s great about the movement is the intentionality of it and taking control of your financial lives.
We’ve been sold that it’s impossible to retire early and we must work until we’re in our 60’s. By being intentional, focused and having a plan, you become in control of your destiny rather than feeling you must work till your 60’s+.
Most people who achieve FIRE, don’t actually retire, they then have the freedom to spend their time doing more of what gives them joy and purpose.
Who doesn’t want to control thier life?
With the Fire movement principles, you can take control and build your best life!