FIRE stands for ‘Financial Independence Retire Early’
It is a lifestyle movement that incorporates spending less and earning more to create a high savings rate typically between 50-70% of your income and then investing that money until you achieve you achieve financial independence!
The concept of Financial Independence has been around for a long time, and in 1992 Vicki Robin and Joe Dominguez published a book called ‘Your Money or Your Life’ .
The book explored an alternative to the social norm of working a 9-5 job to make money for the best part of your life until at a ripe old age you eventually may have enough to retire and enjoy the golden years.
FIRE allows you to write your own story and design the life that you want based on the core DNA level values and motivations that matter to you. For some people the catalyst is the notion of escaping the corporate rat race that we find ourselves caught up in.
Some simply want the confidence of being financially independent and the peace of mind it brings them and their families in the event of (job loss, illness, pandemic, etc) knowing they have the means to support themselves with multiple streams of income or perhaps the chance to create their own business or passion project, and focus energy on meaningful work.
Solving the money problem first is a good strategy as you are buying back time to explore the things you really want to do at a later date!
For others the idea of an early retirement is appealing and cannot be ignored.
Very few people who have fired, will simply be able to decompress and then sit on the beach and sip cocktails under a palm tree for the rest of their lives. Sure this would be fun for about a month maximum and then what happens.
We all need purpose, meaning, creativity, play and a form of work as humans; so planning is key!
Can anyone FIRE?
There are many strategies on the FIRE path which are individual for each person and different factors such as physical location, tax rules, debts, core beliefs about money, assets, financial literacy etc.
There are a million reasons why you cannot Fire and why should never start. If you want an exhaustive list of reasons just ask your friends, family and people you know. They will give you that information for free and readily outline the many reasons you cannot Fire and never start.
If you’re stubborn, sick of touching the fire and getting burnt every time and finally come to the realization that your own plan may have not worked (and if it had you probably wouldn’t be reading this page). Then you need to become teachable and open minded .
Ok, this is easier said than done, if this was just a quantum shift and a case of calculating the math and everything will fall into place more people would do it.
You may be thinking Dave G I’ve been living pay check to pay check and doing self sabotaging behaviour for years, where do I begin?
Well there are different levels of FIRE so which one do you want?
This is the purest form of FIRE where all basic expenses are covered and nothing much else, but you have the independence and time that you do not have to work. There are no extras or luxuries here and the number required is the lowest. This level requires a master of managing and tracking expenses and a minimalist lifestyle.
This is usually the middle point on the spectrum where all basic needs and expenses are met with allowance for extras and comfort, such as (travel abroad, upgrading the car periodically, entertainment, eating out, etc)
This is the highest form of FIRE that you can hit, where all expenses are covered and you can continue to live out your freedom at the same spending rate you enjoyed at your highest income levels when working. There is a lot of high income and you can really buy and spend on whatever you want. It is the 5* Rolls Royce of FIRE types!
To date there have not been any record of successful human brain transplant, although they did trial this successfully on a corpse. Unless you want to be part of a live trial, you need to get to work on the one that you have and start the reprogramming process.
In every situation whatever action you choose; either takes you towards or away from your goal.
Next click here if you want to read How to start FIRE?