FIRE : financial independence, retire early
- Financial Independence, Retire Early (FIRE) is a financial movement that takes direct aim at the encouraged retirement age of 65 and instead encourage them to retire in their 30s or 40s.
- FIRE can be achieved by frugality and extreme savings and investment.
- Inspired by the 1992 book “Your Money or Your Life“.
- To achieve FIRE you need to save up to 70% of the annual income.
- FIRE retirement let you retire early but live off small withdrawals from their accumulated funds, around 3% to 4% of the balance yearly.
- FIRE is meant for people who have substantial income, generally in the six figures.
- FIRE is a lifestyle that limits consumerism and advocate for more being aware of what you spend money on.