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 extended unemployment led me down a path to financial independence and early retirement.
From Her Money …
There are a lot of misconceptions about what you have to do to be part of the FIRE movement. There are also things you can learn even if early retirement is about the last thing on your mind.
Here are five things to take away from the FIRE movement.
The FIRE Movement
What is FIRE and how does it work? In the world of personal finance, FIRE stands for Financial Independence Retired Early, or some variation thereof and there is a growing movement behind this concept.
Within the FIRE Movement, one is considered to be FIRE, or FIRE’d, when their living expenses can be covered by their investment returns. At that point, you are financially independent (FI) and can retire early if you so choose (RE) because work is optional for you.
But FIRE is so much more than budgeting, investments, or a math equation. FIRE is a way of life and a growing movement that is spreading across the globe and being embraced; not because people suddenly love budgeting and personal finance but because FIRE provides hope.
For anyone that’s ever felt trapped by the thought of a working career that could last into their late 60’s or early 70’s, FIRE provides a feasible alternative to the traditional path that society peddles. And once embraced, the idea of reaching financial independence and retiring early is nearly impossible to snuff out. That’s because, at its core, FIRE is reclamation of one’s personal freedom.
And people long to be free.