Financial Independence Retire Early [F.I.R.E]

[chigo]

introduction

what is F.I.R.E

is a lifestyle/investment plan with the goal of gaining financial independence and early retirement through savings. The model became particularly popular among millennials in the 2010s, gaining traction through online communities via information shared in blogs, podcasts, and online discussion forums.

Those seeking to attain FIRE intentionally maximize their savings rate by growing the gap between their living expenses and their income, and investing the difference. JL Collins, an author who has been called the "godfather of financial independence," has said:

"Spend less than you earn—invest the surplus—avoid debt. Do simply this and you'll wind up rich."

The objective is to accumulate assets until the passive income from these assets provides enough money to cover living expenses. Some proponents of the FIRE movement suggest the 4% rule as a rough withdrawal guideline, thus setting a goal of at least 25 times one's estimated annual living expenses. Others, such as economist Karsten Jeske, suggest planning for a more conservative withdrawal rate such as 3.25% or 3.5% (accumulating around 28 to 30 times one's estimated annual living expenses) when planning to retire very early.

FIRE has been criticized for its low accessibility, in that aggressive savings and large investment portfolios require a large sum of money to begin with.

Read More:https://en.wikipedia.org/wiki/FIRE_movement

In conclusion, this is a movement where you can immediately achieve early retirement as quickly as possible.

summarized from various sources, here are some tricks to achieve F.I.R.E

Reducing Expenses: Choosing to live more simply, for example by cooking at home instead of eating out, or buying more affordable items instead of luxury products.

Focusing on Financial Priorities: Having clear long-term goals, such as saving to achieve financial independence.

Investing Consistently: Setting aside most of your income to be invested in instruments that generate passive income, such as stocks, bonds, real estate or maybe you can choose Gold & Bitcoin in your portofolio

Source: Google

design your life for the future, don't just think about eating or buying snacks today.

For those who are currently undergoing this movement, perhaps you can share your journey here and for those who really want to start this movement, you can ask and have a good discussion here.

[Plaguedeath]

Early retirement is bullshit for me, actually I'm stuck in this cycle.

I invest like 80% of my salary for many years, technically I can retire now because 4% of my investment is enough to cover my annual expenses. But, no one knows if I get sick in the future, my wife turn to be materialistic woman, school fees rise really high than 4% annually etc.

If I quit my current job and choose to the job that I want which likely earn bigger in the future, if I didn't make it, I will regret, at the same time I can't back to my old comfort job. Don't say take two jobs at the same time because the first job requires me to work for full time.

[Marvelockg]

If I quit my current job and choose to the job that I want which likely earn bigger in the future, if I didn't make it, I will regret, at the same time I can't back to my old comfort job. Don't say take two jobs at the same time because the first job requires me to work for full time.

Apart from the risk associated with the uncertainties that comes with retiring early, after retirement, it is always as though the next point is death of you don't make proper plan for what productive activity you should be doing after retiring. for me, i don't make a big deal out of early retirement because in the process of working, i get to become really engaged which makes life less boring. it is not as though it is a bad thing to set early retirement plan most especially knowing that you won't always be as strong and relevant as you are at your prime. you should do it but that should not be the whole essence of life. while still working, you could invest into an asset that will serve as your retirement plan or some sort of a budgeted amount for our luxury if you so desire.

[chigo]

Early retirement is bullshit for me, actually I'm stuck in this cycle.

I invest like 80% of my salary for many years, technically I can retire now because 4% of my investment is enough to cover my annual expenses. But, no one knows if I get sick in the future, my wife turn to be materialistic woman, school fees rise really high than 4% annually etc.

If I quit my current job and choose to the job that I want which likely earn bigger in the future, if I didn't make it, I will regret, at the same time I can't back to my old comfort job. Don't say take two jobs at the same time because the first job requires me to work for full time.

you can slowly talk to your partner about how to design a good future together and start a frugal life, it won't take long to make this movement a habit, the goal is to achieve financial freedom, the sooner the better.

for children's school fees, you can include that in the list, you can set aside the income you have for your education costs until they all graduate from school (sorry, not financial advice, I am starting this movement)

[icalical]

Saving 50-75% of your income just isn't realistic for most people. It's mostly achievable if someone is in a high income job or a low cost living area, most people cannot adhere to it fully. That said, the focus on early retirement planning is a win since most Americans still lack adequate retirement savings. Even if full FIRE isn't your goal, adopting parts of it-like regular investing or budgeting smarter, can make a big financial difference.

And I think doing FIRE depends on assumptions such as consistent market growth and low inflation, both of which are not guaranteed. For example, the 4% withdrawal rule may not work if the markets are in a volatile period. While the idea sounds attractive, for most individuals, keep the balance between saving and enjoying life while planning for the future might make our life more meaningful. Flexibility and a backup plan are what make any version of FIRE realistic.

[coin-investor]

You have to be dedicated on this principle

"Spend less than you earn—invest the surplus—avoid debt. Do simply this and you'll wind up rich."

We are living in a hard time where there's a lot of uncertainty. I like the principle, but I don't think I like the end goal of retiring. I would like to continue working even if I have passive income. The mind and body will feel differently if you keep them away from the things its been doing for many years, and that is work.
I like to be financially independent, but I like to keep my body and mind sharp through work.

[Lucius]

It's a good idea, of course, for those who can afford to save on everything possible, and to be extremely intelligent and invest all that saved money in something that will eventually enable them to retire earlier than it is determined by law. However, most people cannot afford such a thing because they already live a lifestyle where they eat at home, buy cheap groceries and cheap clothes, and yet they still lack the money to live their lives without fear of whether they will have anything to put on the table tomorrow.

I'm not saying that someone should eat lobster and caviar every day, but what kind of life is that if you eat rice, bread, or some cheap processed meat every day? Sometimes giving up everything that makes life life is completely counterproductive, because by the time you reach your early retirement, maybe you won't need all that money you saved.

[mirakal]

Early retirement is bullshit for me, actually I'm stuck in this cycle.

I invest like 80% of my salary for many years, technically I can retire now because 4% of my investment is enough to cover my annual expenses. But, no one knows if I get sick in the future, my wife turn to be materialistic woman, school fees rise really high than 4% annually etc.

If I quit my current job and choose to the job that I want which likely earn bigger in the future, if I didn't make it, I will regret, at the same time I can't back to my old comfort job. Don't say take two jobs at the same time because the first job requires me to work for full time.

If early retirement could only make your life uncomfortable in the long run, then what’s the essence of pushing yourself to do it? I know we all want to retire early as soon as we have some investments that paid off, but it’s just that some circumstances won’t allow it.

But anyway you can take my advice, take your job if you are still capable to make it productive, and never cease to invest in potential ones, and when you feel like you can’t work anymore, and your investments are already making a passive income, that could be the perfect time to retire. While early retirement could benefit others, but it’s not for everyone especially those are breadwinners in life.

[YOSHIE]

Financial Independence Retire Early

What do you do when you retire early, you can no longer focus on your finances when you take early retirement, because your salary is no longer the same as when you were still active, as well as your expenses, you have to bear your own financial expenses in all mattersdifferent when you are still active.

Likewise with investment, don't do it during early retirement, in fact you have to do it while you are still actively working, your economy is still stable and increasing, in my opinion, early retirement means you can no longer be independent and focus on your economy, For this reason, use the period when you are still active, not during early retirement, to focus on finances.

[Stepstowealth]

Investing Consistently: Setting aside most of your income to be invested in instruments that generate passive income, such as stocks, bonds, real estate or maybe you can choose Gold & Bitcoin in your portofolio

Even in retirement, some people will still be on the look out for business and money making opportunities because you can retire from a job, but not from the need to get or make money. Profitable investments at a young age will help ensure a better retirement.

After investing from a younger age, financial maturity and wisdom is also necessary to make sure that you do not eat the investments before they mature properly.

[Fiatless]

For those who are currently undergoing this movement, perhaps you can share your journey here and for those who really want to start this movement, you can ask and have a good discussion here.

I have always nursed the idea of retiring early because the rat race is becoming unbearable. The dream of controlling my daily activities is becoming stronger every day. But each day it becomes clearer that the income from my job alone will not be enough to save for my retirement.

Spending less than your income is a good way to save and invest for the future. But it becomes a problem when an individual earns less than the amount he needs to survive. This is my condition now because of inflation which is causing the prices of basic needs to skyrocket.

The only means for me to achieve early retirement is to have a side job. It could be an extra job or a business so that I can be able to save from the extra income.

[Lida93]

Early retirement is bullshit for me, actually I'm stuck in this cycle.

I invest like 80% of my salary for many years, technically I can retire now because 4% of my investment is enough to cover my annual expenses. But, no one knows if I get sick in the future, my wife turn to be materialistic woman, school fees rise really high than 4% annually etc.

If I quit my current job and choose to the job that I want which likely earn bigger in the future, if I didn't make it, I will regret, at the same time I can't back to my old comfort job. Don't say take two jobs at the same time because the first job requires me to work for full time.

If early retirement could only make your life uncomfortable in the long run, then what’s the essence of pushing yourself to do it? I know we all want to retire early as soon as we have some investments that paid off, but it’s just that some circumstances won’t allow it.

Very a few persons amidst many that mounts pressure on themselves about retiring early are likely to achieve success with their early retirement plans. And the reasons aren't far fetched from the underlying circumstances that are beyond their control. Health may fail, economic crisis may loom, conflict outbreak and unplanned family essential needs can distort or ambush these plans especially when your annual earning on normal circumstance still pass some difficulties due to size.

[Wexnident]

~

One emergency can fuck this up though. So yeah, I know lowering your expenses as much as possible can lead to higher possible parts to invest, but invest on both your health and your future. They're both needed and imporant in actually retiring. After all, you can only spend what you've earned if you're alive.

I've personally done something similar ish, not that I've ever spent THAT much on random expenses though tbf. No netflix, no tv subscriptions, just me. Maybe some books every now and then but that's about it. Been pretty consistent as well with how I eat. Similar to what I've said earlier though, slowly realized the importance of personal health so planning to incorporate some diets and exercise into my daily life now (or next year).

[bettercrypto]

Early retirement is bullshit for me, actually I'm stuck in this cycle.

I invest like 80% of my salary for many years, technically I can retire now because 4% of my investment is enough to cover my annual expenses. But, no one knows if I get sick in the future, my wife turn to be materialistic woman, school fees rise really high than 4% annually etc.

If I quit my current job and choose to the job that I want which likely earn bigger in the future, if I didn't make it, I will regret, at the same time I can't back to my old comfort job. Don't say take two jobs at the same time because the first job requires me to work for full time.

If you've been enjoying your job for decades and you've been able to support the family you have well, I think it seems like you're at least somewhat satisfied with the life you have, as if your entry into the bitcoin or crypto industry is just an additional source of income for you.

But not all employees are in the same position as you, and have the same good salary as you, and from what I see of you, you also seem to be good at managing your money.
And other employed people like you should be like that too.

[Zoomic]

If I have an investment that can pay all my bills and I do not have to worry about uncertainties, I am definitely going to retire early. To me, cutting down on expenses just to save or raise money that will sustain me during retirement is not just enough, I do not really love this part. If I am going to live below my means inorder to retire early, then I am really not ready for any of such retirement. I'm gonna work till I get old

Anyone who wishes to retire early should start earlier enough to invest in bitcoin and other investments that can still give him returns during retirement so they do not rely on only savings. Infact, anyone who is going to rely on only savings is gambling with his future and will definitely live in regrets after retirement.

[Jawhead999]

Anyone who wishes to retire early should start earlier enough to invest in bitcoin and other investments that can still give him returns during retirement so they do not rely on only savings. Infact, anyone who is going to rely on only savings is gambling with his future and will definitely live in regrets after retirement.

The article mentioned "savings" doesn't mean it's savings in banks, it's more like about total money you have.

Definitely you need to invest your money because in FIRE movement, you live from the return you get from your investment. Usually they will suggest to invest that give 7% return, 4% for spending and 3% to invest in order to hedge against inflation rate.

During retirement, we're supposed to live from the wealth we have made, not drain our wallet.

[mindrust]

Best way to acquire your FIRE status is to have lots of blue chip dividend paying stocks in your portfolio.

PEP, KO, MO, XOM, MCD, LMT are great examples if you live in the US.

If you live in some other country look into your own stock market because the US taxes the dividend payments (witholding tax) and it is kind of hard to get it back even if you don’t live there.

Owning Real Estate and collecting rent is another well working idea.

No matter which route you decide to follow, you better have a million USD net worth. Otherwise it won’t be enough for anything unless you live in an absolute crap country.

1 million usd, net 4% yield, gives you $3.3k monthly income before the taxes. After taxation you’ll probably end up with ~$2.2k. You tell me if it is enough for anything…

[Roseline492]

you can slowly talk to your partner about how to design a good future together and start a frugal life, it won't take long to make this movement a habit, the goal is to achieve financial freedom, the sooner the better.

for children's school fees, you can include that in the list, you can set aside the income you have for your education costs until they all graduate from school (sorry, not financial advice, I am starting this movement)

Op is a good suggestion but those are easier said than done because a partner whom there monthly salary is not enough for them will hardly think about that and not that they are not concerned about the future of there children but the stability is the problem because is always here and then to eat up a lot of money you have saved, when you have children unless you have a very high paid job will you be able to spend and keep for the future because children are very selective to almost everything, considering how costly things can be, so is a big deal, but to break through from being too dried up on this kind of situation is when you have already started the preparation before then such as a source that no matter how little the profit is it can feed your family so that your salary will not be tide up for immediate consumption anymore.

[Natalim]

It's a good idea, of course, for those who can afford to save on everything possible, and to be extremely intelligent and invest all that saved money in something that will eventually enable them to retire earlier than it is determined by law. However, most people cannot afford such a thing because they already live a lifestyle where they eat at home, buy cheap groceries and cheap clothes, and yet they still lack the money to live their lives without fear of whether they will have anything to put on the table tomorrow.

I'm not saying that someone should eat lobster and caviar every day, but what kind of life is that if you eat rice, bread, or some cheap processed meat every day? Sometimes giving up everything that makes life life is completely counterproductive, because by the time you reach your early retirement, maybe you won't need all that money you saved.

It's like while you are busy preparing for your early retirement, your mind and body have been lifeless already that you won't no longer benefit your early retirement then. That really happens to those who have highly sacrificed theirselves just to achieve their goals and targets in life. Only to realize in the end, life is not all about its future, but stick with the present first and live your life like it's your last.

[Smartprofit]

I periodically watch the YouTube channel "Retire at 35". The author of this YouTube channel is a very talented marketer and evangelist of the FIRE strategy.

He made a lot of money helping various commercial companies increase their revenue. For his work, he asked for a certain percentage of the revenue received. This strategy helped him accumulate a large amount of money and start investing. He realized his dream - he retired at 35.

The author of the channel "Retire at 35" likes to repeat that capital is earned not on the stock market, but in other places. The stock (cryptocurrency) market is a financial instrument for saving, not for making money.