This is a day dream to many but you can make it a reality!
FIRE movement stands for ‘Financially Independent Retire Early’ Yes; many people have embraced early retirement. It is both a scary and exciting experience. You might never be ready but early retirement allows you to travel the world, pursue passion projects or simply not work. FIRE has redefined retirement, making it less about leaving work and more about having financial independence to decide when, how and for whom you work.
Think you are now ready to retire? Think again.
Ironically, retiring early requires a lot of work. Most employees lack financial stability to allow them early retirement. After all, there is a reason most of them work into their 60s.Despite life obstacles, FIRE does not have to be a castle in the air.
We can implement a few strategies to enable it;
1. Budgeting
Retiring early means making some changes on what you spend from your earnings, so Future you gets to relax.
Many people with early retirement ambitions aim to live on 50% of their income (or less).The rest gets funneled into savings. It is also wise to find your ways to bring in some extra income that go directly into your early retirement bag.
2. Calculate Your Annual Retirement Savings
To actualize this, take a look at your current monthly spending and consider what will go down, what could go up, and what might be added or eliminated altogether. Work on minimizing tax and healthcare taxes.
Healthcare can be minimized by adapting cheaper health insurance policies in the market. Taxes are a nightmare for many retirees therefore you will need to strategize about how and when you need to pull income from your investment accounts.
