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The global pandemic has made a lot of people reevaluate what’s important in their lives. From wanting to spend more time with family to rethinking your career path, your priorities might have changed drastically in recent months.
Many people are looking ahead to the world beyond work, and want to be able to retire earlier than the typical retirement age. The FIRE (Financially Independence, Retire Early) movement is resonating with a lot of people and could even be in the pipeline for you.
So how does the FIRE movement work, and could you retire much earlier than expected? Learn everything you need to know here.
How does the FIRE movement work?
The FIRE movement involves living a frugal lifestyle to help you become financially independent enough to retire at a young age. With many people becoming frustrated with working 9-5 and living to work, being able to retire early to pursue passions, travel, and more is an appealing idea.
While the idea of the FIRE movement sounds amazing, it involves a lot of discipline and sacrifice, which many people struggle with. But if you’re serious about retiring early, it could be possible to achieve financial independence with some changes to your lifestyle.
Minimizing your outgoings to boost your savings
Frugal living is crucial for being able to put as much money into your savings as possible. From cutting down on your grocery spend to saying goodbye to unnecessary or impulse purchases, you’ll need to be careful with your spending and bring your outgoings to a minimum. If you’re able to pay off your mortgage as soon as possible, you’ll be able to significantly reduce your living costs to save even more money.
Maximizing your savings to help you become financially independent
The FIRE movement involves having plenty of savings to cover your future living costs, helping to fund your lifestyle after you retire. Being able to grow your savings through investing can help you get to your target quicker, making early retirement possible sooner. Even if you’re a beginner investor, there are ways you can invest to grow your assets sooner than through saving alone.
Find ways of enjoying passive income
Finding passive income streams can also benefit those wanting to become financially independent. Investing in different ventures could help you enjoy a passive income, with entrepreneur Robin St Martin providing a lot of great insight into how to grow your revenue. Having passive income streams could help you give up the 9-5 job, but it could also help you secure an income, even after you retire.
The FIRE movement certainly has an appeal, especially if you’re rethinking your future. If you’ve got the discipline and the motivation to save hard and cut back on your spending, then early retirement could certainly be within your reach. Look at the way FIRE has worked for others, and maybe it could give you the push you need to try it for yourself.
