About

F.I.R.E. stands for Financial Independence, Retire Early. It's a movement and financial lifestyle that emphasises strategic financial planning, frugality, and smart investing to achieve early retirement and long-term financial freedom.

Here's a breakdown:

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1. Financial Independence: Financial Independence refers to a state where an individual or household has accumulated enough assets, typically through savings and investments, to cover their living expenses without relying on traditional employment or a paycheque.

2. Retire Early: This component of the F.I.R.E. movement focuses on retiring or gaining the flexibility to retire earlier than the traditional retirement age, usually in their 40s or even earlier. It's about having the financial stability to pursue personal interests, passions, or alternative career paths without being tied to a 9-to-5 job.

The key principles of F.I.R.E. include:

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• High Savings Rate: Aim to save a significant portion of income, often upwards of 50% or more, by practicing frugality, budgeting, and conscious spending habits.

• Investing Wisely: Prioritise investing savings in diverse, long-term investment vehicles like low-cost index funds, real estate, and other assets to generate passive income and grow wealth over time.

• Reducing Expenses: Focus on minimising unnecessary expenses, avoiding debt, and finding ways to cut costs without compromising quality of life.

• Side Income: Supplement primary income with side hustles, freelance work, or passive income streams to accelerate savings and investments.

• Lifestyle Design: Design lifestyles intentionally, aligning spending and goals with what brings genuine happiness and fulfilment.