What is FIRE – Financial Independence Retire Early?
You may be wondering What is FIRE – Financial Independence Retire Early?. What does being financially independent mean or what is financial freedom altogether?. If these are the questions that haunt your minds, then, let me tell you, you are heading in the right direction of being financially literate. I still remember when I first heard these words and did not know what they meant. So, I went on google and searched for ‘financial freedom retire early wiki’. That is when my journey began. Just like me, I am sure most of you are searching for good resources to understand what is FIRE all about. One of the most important goals of our Personal Finance Blog – Your Rich Freedom is to provide you the in-depth resources. The resources to introduce and explain to you all to the topics of personal finance, financial independence and financial freedom. So that you can build your wealth and be free from the rat race.
What is financial independence?
Let us first start with what is financial independence. In short, it is being free from the worry of money. In other words, it is not worrying about having a job, running your business, or being dependent on anyone for living your life. By building a pool of assets, you will keep receiving your passive income every month without having to work. If you are asking what is passive income, that is a topic for another blog article altogether.
I was not one of the lucky ones to realize the importance of financial freedom at a young age. I was about 24 when I realized its importance and that is when I started reading books on these topics and watching videos on these topics so that I learn more about them and hopefully apply that knowledge to become rich, free, and financially free. In short, retire early. Although I may reach the stage of retiring early, I will still not stop working. The reason for this is I love what I do. Knowing that I have a choice to retire early is a good feeling. This feeling will definetly help me set my priorities in life without worrying about money. However, currently, my scenario is the opposite. I do not have a choice, I have to work to put food on the table. But this will all change in just few years for sure as I am strongly working towards the goal of financial independence.
What is retire early and why should you want to retire early?
Retiring early simply means retiring ourselves from an active working job (for most, it is an escape from the 9 to 5 rat race). This is characterized by no workload at all or very reduced work hours. Now, why should one retire early? In short, to spend your time in things that interest you or activities that drive you. To spend your time free from unwanted stress and to not be dealing with a toxic work environment or even toxic people for that matter. I will be writing a more detailed post on why retiring early has its benefits and does retiring early means you should stop working entirely. Although I may retire in the future, I will still be working. This is because I love what I do and do not consider it as work. I love my job in finance and I also love writing and sharing the knowledge that I have accumulated over my journey. Deepdown, I will be happy knowing that this blog will help you on your financial freedom journey.
What is FIRE (Financial Independence Retire Early)?
Now that you have understood the meaning of financial independence and the meaning of retiring early, I think we can finally understand the FIRE movement. The FIRE (financial independence retire early) movement is a personal lifestyle revolution that aims to reach financial independence and retire early. This has grown prominent since the year 2010 and is only growing every year. The movement focuses on building wealth by saving at least 50% of your monthly revenue consistently, and cutting unnecessary expenses, and investing to generate passive income. This passive income that you generate will keep touching your bank accounts every month without you having to work.
In short, your investments bring you money. Your money works for you. Your lifestyle is automated. This growth is a huge sign of growing financial literacy and is commonly seen among the growing millennials. I, personally feel the world is climbing over to reach utmost financial literacy. Of course, you may ask, don’t they teach that in school? Sadly, very often, it is completely ignored in schools. At least in my case, this is apt.
Times are changing. In today’s age of information, you can build your own life on your terms without being dependent on anyone else. So why wait? Start your journey now. Considering subscribing to our community, so that you are up to date with all new posts. Let us help each other grow and reach your rich freedom.