Every generation has gone through a lot of metamorphoses. This wear and tear had opened the door of opportunities and new ideas for many.
While the baby boomers used to have a dream to buy their house by the ’30s. Pay their mortgage by screeching into their 9 to 5 job and finally try to relax their last stage of life under the roof for which they have dedicated their entire life today’s millennial wants to go through breakneck speed and don’t want to wait.
Today’s generation is endowed with high-speed internet, lauded with fast technology where the information is just a tap away wants to jump into the retirement market as soon as possible.
Everyone wants to grab the opportunity as quickly as possible and convert into money.
So that they can live heartily for the rest of their lives at least, that is their belief.
Vicki Robin and Joe Dominguez fueled this belief by giving fire to this concept.
In their book, “Your money or your life” they inoculated a movement called the FIRE movement.
FIRE, which is broadly known as FINANCIAL INDEPENDENCE, RETIRE EARLY has changed the concept of waiting for till the ’60s to enjoy their life.
The trajectory towards gaining financial freedom at an early age changed the traditional way of retirement amongst youngsters.
How To Reach,” FI” of the FIRE?
We can gift ourselves euphoric financial independence by adopting these three methods:
1.Minimizing our expenses
2.Boosting our earnings
Although the above three looks achievable and straightforward, it’s not that easy.
Let’s have a dip dive into the above three points.
1.Decrease Your expenses: Expenses are something that we can not ignore, but we can lessen our consumption.
It’s not always necessary to participate in the rat race, whether you a recreational runner or an experienced athlete it always makes you breathless.
So, try to avoid this, minimize your needs.
Understand the difference between needs and wants.
Spend as much as is needed without wasting money for the sake of others. It’s useless.
If you are salaried person and earnings are competing for the neck-to-neck competition with the expenses you should not take any extreme step for a luxurious car, house, or travel to an exotic location. Instead, stay content and take care of your extra expenses.
2.Increase you’re earning: Try to earn from different sources.
Our brain has a complicated structure, but our neurons always work for us if we know how to use it.
Just relying on one source of income in today’s world is unfair for your mind.
Several platforms are there where you can use your brain to create another funnel to attract money.
3.Investment: Not everyone is having a crystal ball to see what the future holds.
But investing in various portfolios always helps,
If you are lucky, it can make you a millionaire in no time.
Pick any financial instrument, do some research, learn, or take expert advice and sit back to see your money growing.
It also works for you when you are comfortably lying on your bed, sleeping, or enjoying any TV series.
The risk factor is always intact in it, but if you manage to take the risk, it may serve you delicious reward.
Now coming to the second part, what is the retire early concept “RI” of the FIRE movement.
Well, this means the same what you are understanding, this means knowing to retire before you reach that stage.
You can achieve it by squeezing your saving to the extreme level. If you can manage to save 70% of your yearly earnings and those savings manage to reach 30 times of your yearly outlay approximately around one million. Then one can quit their job.