By: Sakshi Arora | Updated at : 16 Apr 2024 07:07 AM (IST)
Depending on your wants, needs and nature, the FIRE movement might be achievable for you or seem too much of a hassle. ( Image Source : ABP Live AI )
Financial Independence, Retire Early, or FIRE, was a term authors Vicki Robin and Joe Dominguez used extensively in their book, 'Your Money or Your Life', in 1992, popularising the movement that believes in extreme savings that would facilitate an early retirement. Today, more and more individuals are trying to adopt this and move away from the hustle of a long and mundane 9 am to 5 pm work life.
With the corporate sector demanding workers to spend at least 40 hours (if not 70 hours) at their jobs every week, and a large proportion of working class pushing for a 5-day and in some countries, 4-day working week, the idea of a work-life balance is not really the same for everyone.
The Covid-19 pandemic changed everything and forced people to take a pause, evaluate their priorities and take a look at what exactly they are hustling for. While the FIRE movement is not a new one, it is certainly gaining momentum, specially among millennials, who are trying to find where they belong in a rapidly changing world.
The acronym of FIRE marries two concepts — financial independence, and early retirement
Financial independence is the core principle behind FIRE. To attain this goal, you must ensure that you have more than one source of income to see to your needs. Your desired lifestyle cannot be achieved by relying on a single, traditional job. Rather, you have to aim to generate passive income via other sources like rental properties, side jobs, returns from portfolio, etc.
Early Retirement is the ultimate aim for individuals who follow the FIRE movement. They want to escape the daily monotony of a 9 to 5 job. The goal remains to nullify the argument of retirement at 60 years and above, and achieve early retirement in 30s, 40s, or 50s, instead. They might not necessarily want to retire early, rather engage themselves in a passion project or lifestyle that might not generate the best possible income. The primary idea is to not have to work to earn money till the age of 60 and spend your life in pursuing your passions or spending time with your family.
Also Read : Sovereign Gold Bond Vs Physical Gold: Which One Should You Pick?
The FIRE movement is not suitable for everyone. Depending on your wants, needs and nature, it might be achievable for you or seem too much of a hassle. While it does have its own benefits, there are some drawbacks to the approach as well.
Also Read : What Is Section 80D And How Can You Save Taxes With It? EXPLAINED
Eventually, the decision is yours if the FIRE movement suits your needs, lifestyle, and perspective. There is no right or wrong here, it's all a matter of financial goals and choices. So make your decision after careful consideration and do your due diligence.
SEBI Approves New Regulations For Financial Influencers. Here's What Has Changed
Stock Market Rally: Discover The Key Factors Fueling Sensex And Nifty Today
Annuities Vs Life Insurance: Understandings The Basics
Got An Income Tax Notice? Don't Panic! Follow This 10-Point Guide
94% Of Health Insurance Claims Gets Approval, Policyholders Report Satisfaction: Study
Delhi: Political Slugfest Ensues As First Monsoon Rain Wreaks Havoc In Capital — Top Points
Delhi Airport T-1 Roof Collapse: 24/7 War Room To Process Refunds, Airports To Undergo Thorough Inspection — Updates
'Pained’: RS Chairman Dhankhar Claims A First As LoP Kharge Enters Well Of House, Congress Dismisses Remark
MEA Rejects US Report On Religious Freedom As 'Deeply Biased', Says It's 'Driven By Vote Bank Considerations'