It was 1992 when authors Vicki Robins & Joe Domenguez uses the term, “financial independence, retire early or FIRE” in the book called ‘Your money or your life’. The book is about improving your relationship with money and become financially independent but gradually the “Financial independence retire early” FIRE idea passes among most as a beacon of hope. FIRE is not just a radical idea; it's a lifestyle choice that empowers individuals to break free from the shackles of traditional financial dependency. Financial independence, retire early, gained popularity in recent years offering a road map to retire early and live life as per your own likings, in the following article we will look into the core idea of FIRE and how you may get started on this life changing path.

Financial Independence-FI

FIRE movement lies the concept of financial independence, achieving the financial independence means that you are earning passively to cover your living expenses, and you are not anymore bound to work your routine 9 to 5 job to run your monthly expenses. This financial security will allow you to pursue your dreams and live the way you want; you may explore new opportunities and enjoy life without being constantly worry of making ends meet.

Extreme savings for retire early-RE

The central idea of the FIRE philosophy is extreme savings out of your monthly/yearly income, and once you think the extreme savings you are most likely to give up or compromise on your current living standards and this may include your car your house the educational expenses of yourself or your children etc. and when you extreme save you put the savings into the investments generally for the longer period of time so at some decent time of your age you shall retire and set free yourself from your routine jobs and enjoy your life on your own terms.

Intelligent Investing

"Never depend on a single income make investment to create a second source"

“Warren Buffet”

Investing wisely is a cornerstone of the FIRE movement. The wise investment decision will accelerate your plans towards financial independence Instead of stashing money away in a savings account, individuals pursuing FIRE invest in diverse portfolios that generate passive income. Stocks, bonds, cryptos, real estate, and index funds are popular investment vehicles. Compound interest, dividends, and capital gains work in tandem to grow the investment over time, steadily increasing the individual's wealth.

You won’t retire with only a sufficient amount of money the pursuant of FIRE movements consider 25x rule which means you must have the amount in multiple of 25 of your yearly expense.

Planning for FIRE

While FIRE movement is not very lenient for everyone it is the art of extreme saving and investment, one must plan for retirement and the plan must based on the monthly/annual income and present lifestyle. What if you cannot hold on to your compromised life style for long? or you met an extra expense for contingency of force majeure, the proper and rigid plan of FIRE will provide the answer to such questions, if you are willing to become a part of FIRE movement you must plan how will you approach your goal of financial independence the plan shall be written and reviewed and must include the route for coming across the unplanned incidents.

Retire early & mindfully

For supporters of FIRE retiring early does not mean to live a leisure life the aim is to pursue the dreams or live a life as you like. Once you achieve your financial independence through FIRE you pursue your interest your hobbies and passions. Early retirement under the FIRE movement is about living intentionally, focusing on experiences over possessions, and nurturing a fulfilling lifestyle. As an early retiree you may want to travel to interesting places around the globe or you may want to nourish your pet farm, or you want to research your favorite subject and innovate something, these and many a like could be your choices after early retirement.

Conclusion

The crux of FIRE is to challenge the conventional life pattern regarding work, money & retirement, you don’t want to live a 9 to 5 lifestyle many of us don’t so we have to decide on to the route of financial independence, retire early, the route is infilled with extreme savings, intelligent investing and creating multiple income streams. Financial independence is not easy to obtain but also not an impossible dream, millions of people around the globe are having financial independence without being born with a silver spoon. But please remember that it’s not just about retiring early; it’s about gaining control over your financial destiny and designing a life that aligns with your deepest passions and aspirations.

Finwise wish you very Good luck for your fire journey