What is the FIRE Movement? Is it Right for you?

The FIRE movement stands for: Financial Independence, Retire Early. The idea is to live below your means and invest as much money as possible so that you can retire early.

The first step is to find your FIRE number, which is your annual expenses divided by 0.03.

Once you have your FIRE number, you can calculate how long it will take you to reach financial independence based on your savings rate.

The goal is to save and invest aggressively, putting away 50-75% of your income so that you can retire in your 30s or 40s. You read that right. It takes serious commitment to live that well below your means. It is not impossible, but it can be difficult.

To make this happen, you need to keep your expenses low and find ways to raise your income.

Keeping your expenses low:

If you are wanting to get into the FIRE movement, take your time to truly look into where your money is going. Define what needs to be cut out and what is a necessity. Get onto a budget and stick to it. Take away all unnecessary expenses and invest the extra money that you save towards a serious project.

Finding ways to raise your income:

There are a few things you can do in order to bring in more money. One way is by 401(k) matching. 401(k) matching is when your employer matches the amount of money that you contribute to your 401(k) retirement savings plan up to a certain percentage. Another way to make extra money is to get a side hustle. A side hustle is a way to make money outside of your 9-5 job. This could be anything from starting a blog to becoming an Uber driver.

The FIRE movement is about taking control of your finances and building your wealth so that you can retire early. It takes dedication and commitment, but it is possible to achieve your financial goals.