What is the FIRE Movement?

Financial Independence Retire Early, also known as FIRE, has become a huge movement in the last 10 years. Much of the FIRE movement is driven by many people choosing to take control of their finances so that they can enjoy life and reach their goals without having to be completely dependent on a job. But what is FIRE really, and how can one achieve it? In this blog I’ll be talking about why I’m on a journey to achieve FIRE and what FIRE is.

Now FIRE for many is a way to not be completely dependent on a 9–5 job. However, there are many that enjoy their career, and have no plans on giving up on it completely, but they still want to achieve financial freedom. There are different types of FIRE that cover both ends of the scale, and everything in between.

Traditional FIRE: calculated by multiplying your annual expenses by 25–30, which usually adds up to be between $1M -$3M. This results in a Work Optional lifestyle.

COAST FIRE: Investing enough money that you will not have to add anymore past a certain point. The annual interest and compound interest will do the rest until you are ready to retire at 65. This will only be enough money to cover one’s annual expenses.

BARISTA FIRE: Saving/Investing money so that you can give up your 9–5 job, but continue working part-time to cover expenses or to work in a lesser paying dream job.

LEAN FIRE: Living a minimalist lifestyle, which allows for the ability to increase one’s saving rate to as much as 70%. Usually covers annual expenses up to$40k once retired.

FAT FIRE: Is a mix of Traditional and Lean FIRE, where you save more than 50% of your income by living a minimalist lifestyle, but save/invest enough to allow for a Work Optional lifestyle, without living a minimalist life. This is done by someone that makes more than $40K annually

I’m currently pursuing Barista FIRE. I love being a Teacher, but I want work to be an option and not have to be dependent on my job as my sole source of income. I want to be able to spend time with my family and friends when I want to and when they need me. I don’t want to have to worry about how my bills will be paid if I have to be a caregiver for a loved one. You can always make more money, you won’t get back more time.

Whichever version of FIRE you choose, make sure it is right for you. You should still be able to enjoy the journey on your way to FIRE. One thing you can’t get back is time; remember that!

It’s time to #levelupyourwealth!!

Related posts:

Podcasts have exploded in the last few years, and I have no doubt that 2021 will see that trend continue. Spend a few hours listening to a few great podcasts and the reason for this becomes quite…

Your bathroom is one of the most important rooms in the home in terms of both form and function. With the right modern bathroom ideas, you can create a spa-like atmosphere and contemporary space that…

Paralegal Job Description A paralegal is a very important part of our legal system which actually acts as a link between the common people and the law system. Paralegal is the best option if you want…