Learning how to save 50% of your income is a great way to set yourself up for financial independence. Maximizing savings is something anyone can do, regardless of income.
In the world of FIRE and early retirement is that "what" and financial independence is the "how." Simply stated: no FI, no ER.
Financial independence, or FI for short, is when you're investments generate enough cash to cover your expenses. That's the holy grail because it means that money is no longer an object. You're financially free!
Not Everyone Should Pursue Early Retirement
Not Everyone Should Pursue Early Retirement, but EVERYONE should absolutely strive to become financially independent.
When you're financially independent, you've got options. You can go to work or quit. Take a vacation or lie on the couch all day. What you do doesn't matter because you're financially free.
The Best Thing Money Can Buy
The best thing you can buy with your money isn't more stuff - it's freedom. When you no longer have to trade your time for a paycheck, then suddenly you can do whatever you want with your time. You're free! And that's what financial independence is all about.
Who doesn’t want to get rich quick then ride off into the sunset to live the life of their dreams? I do – that would be awesome! And based on the Google search results that drive people to this website, I’m not alone either. Here’s the good news/bad news reality: it is possible to get rich quick. But you shouldn’t spend much time or money trying.
Happy Halloween, Campers! Today is the day when much of the Western world celebrates an ancient Celtic harvest festival by donning costumes of all sorts to ward off evil spirits and ghouls. Actually, much of the Western world has no idea why we celebrate Halloween, they just like to dress their kids up and send them off to ask strangers for candy.
This particular Halloween might be a bit spookier than most, especially for those of us new to The FIRE Movement that have enjoyed massive stock market gains since deciding to get our financial act within the past decade or so. That’s because this massive bull run appears to be slowing down. For many investors this could be their first bump in the road.
Most of this year has been great, but October has seen year-to-date gains wiped out. The market is now at a lower point than when the year began (at the time of this writing, we’re down -1.21% for the year after seeing highs over 8% a short time ago).
Spooky times indeed!
As more people become aware of and join the FIRE movement, the definition of FIRE continues to evolve. So just exactly what does FIRE stand for in finance terms? Well, that really depends on who you ask.
People are funny creatures. We quickly become accustomed to new luxuries and then we can’t seem to live without that thing we’ve lived our entire lives without.
Cell phones are a good example. Just a few short years ago cell phones were expensive nice-to-haves. Today they are must have items that people have become addicted to and can’t seem to function without.