Interested in FIRE? Takeaways From the Early Retirement Movement That Aren’t Extreme
Retiring before you turn 40 is appealing to most of us. But the extreme lifestyle it takes to achieve this goal is not as easy to follow.
Financial Independence, Retire Early, or FIRE, is a lifestyle movement that encourages you to build a cushy nest egg — at least 25 times what you’ll need for annual expenses in retirement — so you can leave the workplace before the typical retirement age.
The FIRE movement hit the scene in 1992, but it really took off with millennials over the last 15 years. while the path to FIRE looks different for everyone, and there are various approaches within the movement, most of the journeys begin the same way: Land a well-paying job in your 20s, save a significant chunk of money (anywhere from 50% to 75% of your take-home pay), and live far below your means. Many FIRE participants also boost their incomes with a side hustle (or several side hustles) or through real estate investments.
It can also mean developing an obsessive focus on hitting your FIRE number, the specific amount of money you need to save to retire by your desired age.
The idea of retiring early has a universal lure that’s attracting plenty of followers, but FIRE is also getting its fair number of detractors. Some are dropping out because it’s exhausting. Others are realizing that it’s costing them relationships and experiences that no amount of money can recover.
“It takes a lot of discipline and sacrifice,”