What is FIRE: Financial Independence Retire Early

You’ll commonly see the acronym FIRE written multiple ways, including F.I.R.E. and FI/RE. No matter which way you prefer, the definition remains the same and can be broken down into two parts. Financial Independence and Retire Early. Today we’re going to walk you through both.

1. Financial Independence

The first half of the acronym is Financial Independence. This is the concept that you have enough money saved and invested to live off of and cover all of your necessary expenses for the rest of your life. Yes, you read that right. THE REST OF YOUR LIFE.

2. Retire Early

The second half, refers to the concept of Retiring Early. Simply put, this means retiring from your traditional job before the standard retirement age of 65. Many people within the FIRE community set goals to retire between 30 and 40 years old.

How Can You Achieve FIRE?

The idea of achieving financial independence and ultimately retiring early, is actually quite straight forward. In fact, many average-income earners are completing this goal and enjoying their newfound free time. It all boils down to saving more than you spend.

By saving and investing more and more money, you’re building up your nest egg and getting closer and closer to your Defining Dollar. The more you invest, the faster you’ll reach this goal.

The key here is *investing* in order to achieve this type of goal so quickly, you’ll most likely need to invest into the the stock market. You’ll commonly see a well-rounded portfolio including stocks, bonds, real estate, and crypto.

If you’re interested in learning more about our portfolio, hop over to our Financial Updates category.

Disclaimer: We are not financial experts and this is not financial advice.

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