By Elisi Studios
Most people in the United States retire at age 62. However, a new movement that’s getting a lot of attention believes you can retire a lot sooner than that.
It’s known as the F.I.R.E. movement, and it’s no surprise that there are a number of people interested in it because of everything it promises.
Keep reading to learn more about what this movement is and how you can join it to gain financial independence so you can retire as early as you want.
What is the F.I.R.E. Movement?
F.I.R.E stands for financial independence, retire early. It’s a movement filled with people who believe retiring in your 40’s or even 30’s is achievable through hard work and dedication.
How to Catch on F.I.R.E.
Now that you know what this movement is all about, let’s take a look at the four things you need to do so you can retire when you want.
Know Your Retirement Number
The first thing you have to do is figure out your retirement number. This is the amount of money you need to have saved before you can safely retire. There are three things you need to consider to come up with this number.
Life Expectancy
The first thing you want to think about is how long you expect to live and for how many of those you want to be retired. On average, Americans live 78.6 years, but this varies depending on your gender, race, genetics, and location.
Living Expenses
The next thing you need to figure out is how much you expect to spend every month and year during your retirement. Start by looking at your current expenses and thinking about where you want to live and do during retirement.
Ongoing Income
Hopefully part of your retirement plan involves having some type of ongoing income. This could include:
- Social Security benefits
- Rental properties
- Passive income
Once you know your retirement number, you can figure out how much you need to save every year and month to reach this goal.
Lower Your Expenses
The next step is to start budgeting so you can cut out all of the unnecessary expenses in your budget. This could help you save hundreds or even thousands of dollars and is half of the equation to reach your savings goals.
Increase Your Income
For most people, cutting expenses won’t be enough to save the 50% or more of your income you need to retire early. For that reason, you’ll likely have to increase your income by starting a side hustle or working another job.
Create Good Habits
To lower your expenses and increase your income, you have to create good habits. This includes excellent time management along with improving your spending habits.
Ready to Reach Your Goals?
Now you know what the F.I.R.E. movement is and how to retire early. As you can see, it takes hard work and dedication. But it’s worth it to escape the rat race and live life as you want it.
If you’re ready to start achieving your financial goals, check out our app. With it, you can set up habits and start planning for your future so you can build it according to your own dreams.
