If you heard of the FIRE movement before, you may associate it with extreme frugality and minimalistic living. To break the paradigm of 9-5 work until you hit 65.įor many in the financial independence (FI) community, the ultimate goal is to retire early (RE).īut for others, it means leaving their 9-5 job to follow their passions, without the financial insecurity that would normally come along with doing so. And as more people joined, it became a movement. With a shared goal in mind, those interested in financial independence formed a community. The Financial Independence Retire Early (FIRE) Movement But it is possible-and simpler than you may think. Reaching financial independence takes time, dedication, and a complete shift in mindset.
Sound impossible? I assure you, it’s not. When people reach financial independence, it’s not unheard of for them to retire before 50, 40, or even 30! So, a starting $1M portfolio would theoretically be worth the same-if not more-in 20 or 30 years. Instead, the goal is to live off of investment earnings and other sources of passive income. This is not a new concept traditional retirees have (ideally) met this definition for decades! There are, however, two major distinctions between financial independence and traditional retirement.įirst, the plan is not to cash out on savings in retirement. Financial independence is defined as having enough saved to no longer rely on a 9-5 job.