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F I R E - Financial Independence, Retire Early.

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hender

TF Legend
The acronym FIRE stands for Financial Independence, Retire Early. It's a movement focused on achieving financial independence and retiring decades earlier than traditional retirement ages, often in one's 40s or even 30s. This involves aggressively saving, investing, and potentially reducing expenses to build a large enough nest egg to support oneself without relying on employment income.

Core principles of the FIRE movement:

Financial Independence:

Having enough passive income (from investments, etc.) to cover your living expenses without needing to work for a paycheck.

Early Retirement:
Retiring significantly earlier than the typical retirement age (55, 60, or even 65).

Aggressive Saving and Investing:
Saving a large percentage of your income and investing it in a diversified portfolio of assets (stocks, bonds, real estate, etc.).

Frugality:
Minimizing expenses and reducing lifestyle inflation to accelerate the savings process.

Mindful Spending:
Being intentional about where your money goes and prioritizing experiences and things that align with your values.

Different approaches within the FIRE movement:

Lean FIRE:

Requires a very low annual spending and a high savings rate.

Fat FIRE:
Allows for a more comfortable lifestyle in retirement with higher spending needs.

Barista FIRE:
Involves semi-retirement, working part-time or in a lower-paying job that provides some income while the passive income covers the rest of the expenses.

Coast FIRE:
A strategy where your investments have reached a point where they are expected to grow to your FIRE number by retirement age, even if you stop saving.

Reaching FIRE:

Calculating your FIRE number:

This is the amount of money you need to have saved to generate enough passive income to cover your expenses.

Developing a savings and investment plan:
This involves figuring out how much you need to save each month and how you will invest your money.

Tracking your progress:
Regularly monitoring your savings, investments, and expenses to stay on track.

Adjusting your plan as needed:
Life changes and you may need to adjust your savings goals or investment strategy.

FIRE is not just about money, but also about:

Freedom and flexibility:
Being able to choose how you spend your time and pursue your passions.
Personal growth: Learning about personal finance, investing, and developing new skills.
A sense of accomplishment: Achieving financial independence can be a significant personal achievement.
 
Please share some numbers. Thanks in advance
Bro...No varies on multiple factors like current age, retirement age, expected expenses, inflation, expected return etc...It is different for different people.

At macro level, If you have X investment & 4% of this value can take care of your annual expenses then you are good to go. You can dip 4% annually from investment (Assuming your investment is in FD @ 6% or 7% )

For example, if you are planning to retire at 50 year and your inflation adjusted annual expenses is 12 lakhs i.e. 1 lakh per month then you need corpus of 6 Crore for FAT Fire....This is just an example for reference....My personal no's are different from this.
 
There is nothing like early retirement for a family of 4 people with 2 kids... Only those who are not married or someone with ancestral properties/money can enjoy these early FIREs and rapid fires etc..
Life is roller coaster for many...
Very true. It is rare to find self made millionaires.
In most cases it is hereditary wealth, inheritance and parents sufferings.

Very rarely couple choose not to have kids because it is costly to bring them up.
But majority will have atleast 2 kids.

For a common man, fire is far away. Life is only full of sufferings till death. Sad but true.
 
Very true. It is rare to find self made millionaires.
In most cases it is hereditary wealth, inheritance and parents sufferings.

Very rarely couple choose not to have kids because it is costly to bring them up.
But majority will have atleast 2 kids.

For a common man, fire is far away. Life is only full of sufferings till death. Sad but true.
Original :

Wo log bohot khushkismat the jo kaam se aashiqui karte the...
Ham jeete ji masroof rahe, kuch ishq kiya kuch kaam kiya....

English:

Those people were very lucky who used to love work...We were busy all our life, did some love and some work....

Tamil

வேலையை நேசித்த அந்த மக்கள் மிகவும் அதிர்ஷ்டசாலிகள்...
நாங்கள் எங்கள் வாழ்நாள் முழுவதும் பிஸியாக இருந்தோம், கொஞ்சம் அன்பும் சில வேலைகளும் செய்தோம்....

Marathi

ज्या लोकांना त्यांचे काम आवडले ते खूप भाग्यवान होते...
आम्ही आयुष्यभर व्यस्त होतो, आम्ही थोडे प्रेम आणि थोडे काम केले....

Kannada

ತಮ್ಮ ಕೆಲಸವನ್ನು ಪ್ರೀತಿಸಿದ ಜನರು ತುಂಬಾ ಅದೃಷ್ಟವಂತರು...ನಾವು ನಮ್ಮ ಜೀವನದುದ್ದಕ್ಕೂ ಕಾರ್ಯನಿರತರಾಗಿದ್ದೆವು, ನಾವು ಸ್ವಲ್ಪ ಪ್ರೀತಿ ಮತ್ತು ಸ್ವಲ್ಪ ಕೆಲಸ ಮಾಡಿದ್ದೇವೆ....

Malayalam
തങ്ങളുടെ ജോലിയെ സ്നേഹിച്ച ആളുകൾ വളരെ ഭാഗ്യവാന്മാരായിരുന്നു...
ഞങ്ങൾ ജീവിതകാലം മുഴുവൻ തിരക്കിലായിരുന്നു, ഞങ്ങൾ കുറച്ച് സ്നേഹവും കുറച്ച് ജോലിയും ചെയ്തു....


Just because people are fighting over language, don't want to hurt anyone.....
 
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