“Nothing is impossible”
In this post, I will answer the most common questions about FIRE.
- What is the FIRE movement?
FIRE = Financial Independence, Retire Early. It is a lifestyle movement whose goal is to achieve financial independence and retiring early. The main idea is that you maximize the gap between your earning and your spending. By maximizing the gap, you accumulate assets until you can live on your passive income generated by your assets. When you reach financial independence stage, you will decide what to do with your life — work becomes optional.
2. Why?
Because life is not only about work. Life is about freedom. Life is about balance. If you know that by adjusting your spending habits, learning more about investments, personal finance, you will be able to achieve financial independence and therefore you will have a lot more options for your life. You will have more time to spend with your loved ones, you will have the freedom to do things you want to.
3. Is it too late for me to start my FIRE journey?
It is never too late to start your FIRE journey. Why? Because it is not only about money, it is not only about financial goals. Remember it is a lifestyle movement. It is all about self-discipline.
If you are young, you have time. But if you are not that young, you have experience. Your experience can help you a lot in achieving your FIRE.
4. Will I have to give up a lot?
Yes, because “no pain, no gain”. You have to adjust your spending habits, you have to acquire financial knowledge, you have to do budgeting, you have to understand your investments, you have to convince your partner, you have to read, you have to look for new opportunities…
and No, because you should do all the mentioned above anyway. You just need to do with the FIRE mindset, with the attitude that one day you will achieve our FIRE goal and you will have more options for yourself.
5. How long does it take to achieve FIRE?
I do not know because I am still on my way. But from my research, it will vary from 10 years to 15 years. It really depends on your approach. There are three types of FIRE — lean FIRE — FIRE — fat FIRE. The only difference here is how much you spend. And obviously there is a trade-off that you have to consider here.
6. How should I start my FIRE journey?
Read books, listen to Podcasts, do your own research, talk to your FIRE friends, identify your current net worth and your goal. Understanding your current situation and having a clear goal will help you choose the most suitable approach for your current situation.
7. What should I do now?
After you start your FIRE journey, it is crucially important to stay motivated, stay patient and stay disciplined. You are walking on a new path that you create for yourself. Challenges will be there waiting for you. You have a long way to go but you have to conquer that impatience.
Do not forget to stay present. FIRE movement is a good direction for you. But it doesn’t mean that you have to be future-oriented all the time. If you catch yourself being impatient, just try to pay attention to the moment. Believe in yourself and try your best.
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