First and foremost, the FIRE (Financially Independent/Retire Early) movement is a lifestyle that many people live and swear by. Its goal is to reach financial independence and retire as soon as possible. People who live with this kind of lifestyle loathe overspending on things that don’t matter. Many FIRE devotees claim that they save as much as 50% or more of their income.
Many people who are under FIRE join in different forums, camps, and retreats. Aside from these, other members also write blogs to spread financial wisdom. If you’re looking forward to living under the guidance of FIRE movement, follow these tips:
Never forget to save money
Most people get excited when receiving their paychecks. It’s common. However, don’t make the mistake of spending 75% or more of your paycheck. You must save it or invest in different financial vehicles. If not, early retirement will be out of the equation.
Don’t lose sight of your money with the use of a tracker
There will come a time that you might lose track of your expenses and daily budget. That’s why it’s a necessity to keep tabs on your spending’s and investments as well to prevent confusion. Plus, it makes you conscious of the things you’re spending your money.
Spend little to no money when socializing with friends
Going somewhere with your friends can be expensive. Some people tend to talk over buying foods and drinks or playing high-end games such as golfing, skiing, and more. Despite these expensive getaways, you can still have fun without doing all of these activities.
Come up with fun things that require little to no money. Going to the park, hiking mountains, or playing board games are enjoyable pastimes. On top of that, you are saving money effectively.
Always do everything on your own or exchange services if you can’t do it
Sometimes, even if it’s the smallest things, we tend to seek services from other people even though the task is workable. As much as possible, do things by yourself. With that, you can keep what you would’ve paid for convenience.
Shop only when necessary
A majority of people make the mistake of shopping for fun. If you’re the kind to shop because items are on sale, then think again; it will not pay you well in the long run. As much as possible, settle for something that you truly need, not because it’s only sold for less.
You should also stay away from high-end boutiques with high price tags. If you’re opting to buy something, better check garage sales, thrift stores, or any establishments that sell items for less.
Saving for early retirement can be difficult, especially if you don’t have the mindset to begin. It’s a must to initiate things to move forward to financial freedom. Through FIRE movement, you will be able to escape the clutches of work and venture to a path where you have something saved while lying around a beach somewhere for the rest of your years.