How to retire early & escape the rat race with FIRE
Welcome back to the fourth episode of Money talks (for teens) with myself – Ms Broke in Bristol – & my daughter Little Miss Diva. We’ve launched Money Talks (for teens) to help the younger generation learn about money, budgeting and in this episode financial independence.
If you're interested in retiring early then you may have hard about the FIRE movement - which stands for financial independence retire early. The basic principle is that if you save and invest 50 to 75% of your income, you could retire in your 30s or 40s.
To do this you'll need to focus on keeping your expenses as low as possible and your income as high as you can. Obviously the higher income you’re on the easier it will be, but you can look at adding to the income you get from your day job by taking on an extra job, starting a business or side hustle and learning about investing.
FIRE is a movement that has been made popular through blogs and social media and even though it's been around for three decades it's now starting to gain more momentum than ever. It encourages young people to plan for their retirement by investing in the stock market and if you're thinking of doing this I would strongly recommend you speak to a local Independent Financial Advisor who can advise you much better than I could.
Although It's too late for me to adopt this plan I really love the fact that the movement encourages younger people to think about their expenses and whether they are necessary by splitting them down into assets and liabilities. For example, having a lavish car is a liability not an asset as the price depreciates over time. The movement also encourages youngsters to reject consumerism by only buying new clothes when it’s essential.
For more information on fire check out these resources: