Updated: Mar 13
The FIRE Movement has gained a lot of attraction lately. It has received compliments of being an easy to understand method to achieving your dreams. But, some of us struggle to understand the concept. Here is my take on what the FIRE movement really is.
F - Financial
I - Independence
E - Early
Financial Independence, Retire Early
The FIRE Movement can be explained in short with the following:
By gaining financial independence, you will be able to retire early.
In long and in more depth though, it can be explained:
Financial independence is a term commonly used to express a situation of finance where you are living on multiple sources of incomes including investments, you are not worried by your financial situation, and have enough money saved for emergencies that are likely to pop up.
Retiring Early is a concept that many shy away from. I have heard many people say things like "why would I want to retire? I would get so bored". The idea is not however totally retiring in your 20s, 30s, or 40s; rather, having the flexibility and the resources to choose what you do.
I am only 18 years old and am happy to be studying and working towards a career in Law. However, the concept of retiring early is attractive for me to be able to start a family without the worry and anxiety of losing an income.
The FIRE movement to me is a lifestyle. Here are some things that I am doing to allow me to become financially independent and to retire early:
Saving the majority of my income.
Keeping my expenses as low as I can. Especially whilst I am young it is easy to keep expenses low and to merge in to the "broke uni student" group, even if I am saving money.
Investing my money to allow it to grow for me.
Making goals about increasing my number of income sources.
The FIRE Movement can look different for you. It's not a one size fits all. But, you can work your financial life around your needs and what you are working with in order to make it work for you and those that rely on you.
Share this story with your FIRE buddy to see what your friend is doing to become financially independent and retire early!