Financial independence – everyone wants it, but not everyone can achieve it. Why? The explanation for this is possible that financial independence is a process. This needs effort and commitment over a long period. Everyone’s financial independence concept is unique, ensuring that the direction they follow would also be unique to them.
Interestingly, the last decade’s prosperity has given rise to a brand new trend—the FIRE movement. FIRE means financial independence, retire early. Today we will learn how to Financial Independence following the recent trend of the FIRE Movement.
Most people need to continue their Work
Many FIRE bloggers, podcast hosts, and media personalities may function less than transparently. They insist that their family spend just $25,000 or any other arbitrary amount each year but do not break their costs down or justify how this can be achieved because the average family alone spends a third of the money on healthcare.
The FIRE movement’s un-concealed secret is that many people still work and gain income who speak about FIRE. Many receive a lot from sponsorships and associations, and this is the money that FIRE’s average family does not have access to.
Everyone cannot attain FIRE
The Fire movement contains, and this is no exaggeration, mostly whiting men employed as engineers! However, you may withdraw early if you receive a $94,500 median annual salary, according to the Bureau of Labor Statistics. Some families in the household already have two high staff, which gets them there much quicker.
According to many studies, white men earn more than women, and anybody (male or female) is not white. Not only that, but it may also interrupt a well-compensated work experience, an unforeseen accident, or disability. Again, not all come from a house of loving parents who lend them a particular leg.
Attainment of FIRE in Short Run in not Easy Job
Achieving FIRE in the short-run is not so simple. It does not usually occur. In reality, in a decade of tremendous growth and development, the FIRE movement was born. Many of its supporters may have given a misguided idea of what long-term returns are for investment. It will help if you wait for a long time to see the progress.
People willing to achieve FIRE has to give their best Efforts
The FIRE movement has a cultic element in it, and if you don’t want to toe the line, it is very off-putting. FIRE enthusiasts frowned at wasting money on anything not necessarily necessary, whether it’s a weekend meal or a new car.
Many of them have a tiny amount of sales and for years or even decades end up sacrificing holidays and hobbies. Although the payoff may well be worth the retirement, we all know that nothing is guaranteed in existence.
What if you give everything up to Flames, but don’t you ever enjoy it? People die all the time, whether they like it or not. It seems like the balance between life now and saving should be balanced so you can still enjoy life later.
Quitting a Stable Job can be Risky in a Period of Economic Fall
Finally, in an economy where the unemployment rate stands at 3.5%, the FIRE movement is most meaningful. Without putting everything on the line, you might quit your job and try early retirement. You should only get another J-O-B if it doesn’t work out. But the pandemic showed us that not all are healthy days. Unemployment rates are dropping, but they increased when COVID-19 closed businesses off from coast to coast in March and April. It could a long time, even decades, to get unemployment down to 3.5%, or never again. Anyway, it’s not easy, especially right now, to get another job.
Amid a pandemic, the FIRE movement may not be necessary, but it provides many useful lessons in its values. Spending less and working within your wealth is always intelligent. If you can save and save the difference, you can achieve your financial goals quicker.
And don’t get too locked in that your life is forgotten. Cost-cost encounters will make life worth living, and splashing on some animal comforts is not the end of the world.
Here is my tip: it is up to you to save your future (because it does), but treat it like it is your last one every day. Do what your family likes, embrace, and affection, then rest and smell the roses while you can.