Breaking Down the F.I.R.E. Movement
Who says you need to wait to retire until you're 65? A new wave of young workers have joined the FIRE Movement and are seeking to take early retirement to a whole new level.
| What is F.I.R.E
F.I.R.E stands for “Financial Independence Retire Early.” Individuals in the movement believe it is possible to be Financially Independent and Retire Early in their 30s or 40s. Those that have joined the movement all have different goals for their own F.I.R.E. – Some focus on the Financial Independence aspect while others are laser focused on the ability to Retire Early. Some individuals may choose to stop working completely, others desire to work part-time or scale down the role work plays in their life. To cover their living expenses after retiring at an early age, FIRE devotees make calculated withdrawals from their portfolio depending on the size of their savings and their desired lifestyle.
Regardless of one’s specific goals, the F.I.R.E movement pushes people to do two things. First, increase their household income as fast as possible (think raises and side hustles) and secondly, keep expenses extremely low to save and invest as much as possible. The goal is to save anywhere from 50-75% of your income! This is no easy task and takes extreme planning and discipline. Frugality is a big part of the movement but more recently that goal has shifted to happiness and how much is enough to be content. The recent pandemic helped stoke the FIRE movement with a shift to more virtual workforces, which gives employees flexibility on where they live and their spend on housing and commuting costs. The pandemic has driven individuals to evaluate what’s really important to them with some deciding their current job is not on that list.
| What’s Next For You?
During this ‘Great Resignation,’ many workers have chosen to retire early or start something completely new. What’s next for you? Whether your goal is to retire at 35 or 65, you need to have a plan. Embark Financial Partners excels at developing a plan to help you pursue your life goals. If you want to learn more about the FIRE movement, do not hesitate to reach out. We would love to assist you in becoming Financially Independent and Retire Early. Stay tuned for future articles on more FIRE movement stories and tips.