These outdated financial rules were created by previous generations, but no longer hold true in today’s world.If you’re interested in achieving financial independence and early retirement then you need to consider breaking these 5 outdated financial rules.
The FIRE Movement
The FIRE Movement
The FIRE Movement is a lifestyle choice with the end goal of financial independence and an optional early retirement. FIRE, an acronym standing for Financially Independent Retired Early, is based on two financial rules of thumb: The Rule of 25 and The 4% Rule.
Often called FI (rhymes with hi), Financial Independence is achieved with your living expenses can be met by income generated from your investments. Basically, one if financially free when working for a paycheck is optional.
Not everyone should pursue an early retirement, but everyone should pursue financial independence. Many in the FIRE movement have no intention of giving up work once they are FI.
People of The FIRE Movement
Check out what others are saying about the FIRE movement:
- What is Financial Independence, from Mr. FI Guy
- Starting a FIRE, from Caught on FIRE
- What FIRE Means to me, from Enchumbao
- Light Yourself on FIRE This Year, from Funding Happy
- What is Financial Freedom and Why You Should Want It, from Smart Money Manners
- FIRE Fundamentals, from Partners in FIRE
- What is FIRE, from Your Money Blueprint
- FIRE By Any Other Name, from She Picks Up Pennies
- What Do You Mean, "On FIRE"?, from Physician on FIRE
- The Financial Community is on FIRE, from Little Brother Life Coach
- The Five Personas of FIRE, by Prairie FIRE Canada
Keep scrolling to check out some of the following articles related to Financial Independence and Early Retirement.
Mike Tyson once said “everyone has a plan till they get punched in the face.” The opposite was true for me.
It took a solid punch to the face for me to wake up and realize that I needed a plan. This is the story of how my 14 months of unemployment led me down a path to financial independence and early retirement.
Have you heard that FIRE is only for the wealthy? Unfortunately that narrative seems to be gaining a bit of steam and that’s too bad, because it’s a load of crap.
Sure the wealthy will be able to achieve FIRE faster than everyone else, but the speed at which someone else achieves their financial goals has zero impact on what you’re trying to accomplish.
FIRE might be easier to reach for the well-to-do, but FIRE offers something for everyone, regardless of their income, and anyone that says otherwise doesn’t fully understand The FIRE Movement.
Just a few short years ago I began taking on more responsibility at work, which lead to me bringing home bigger paychecks and enjoying cushy employee perks. That extra income and those perks got us to a point where we *finally* had a bit of financial breathing room. We took full advantage and began to get our financial act together.
Life was awesome! But the financial progress we were making came to a grinding halt the day I lost my job.
This Contributor article was written by Just Start Investing.
Learning how to save 50% of your earnings is a great way to set yourself up for financial independence. Maximizing savings is something anyone can do, regardless of income.