F.I.R.E. (Financially Independent, Retire Early) is a financial movement focused on achieving financial independence and early retirement. The goal of F.I.R.E. is to accumulate enough savings and investments to achieve financial freedom and retire much earlier than the traditional retirement age of 65.
The basic principles of F.I.R.E. include reducing expenses, increasing income, and investing aggressively to achieve financial independence as quickly as possible. The movement is based on the idea that by saving a high percentage of your income and investing it in low-cost index funds or real estate, you can accumulate enough wealth to retire in your 40s, 50s, or even earlier.
There are several different approaches to achieving F.I.R.E., including the "Lean FIRE" approach, which involves extreme frugality and saving up to 70% of your income, and the "Fat FIRE" approach, which allows for a higher standard of living and saving around 50% of your income.
While the idea of early retirement and financial independence can be appealing, it's important to note that achieving F.I.R.E. requires significant sacrifice, discipline, and dedication. It may also require taking on more risk with investments and forgoing some of life's luxuries in the short-term.
Overall, F.I.R.E. is a lifestyle choice that involves a long-term commitment to financial independence and early retirement. It may not be for everyone, but for those who are committed to the principles of the movement, it can be a path to greater freedom and flexibility in life.
* All investing involves risk including loss of principal.