Let me confess this article came in ET Wealth and I liked this tittle of the topic so I am trying to explain in my way few points about FIRE.
"Financial Independence Retire Early". Now a days this is very famous term used by all young stars or millineals. They want to earn in 5 years to 10 years a Big amount and want to retire for Life.
"FIRE" stands for "Financial Independence, Retire Early" in financial planning.The goal of this well-liked financial trend and technique is early retirement and financial independence.
The FIRE movement's main objective is to save and invest a sizeable amount of one's salary in order to accumulate a nest egg large enough to support a comfortable lifestyle without requiring regular employment.
The FIRE movement generally takes two basic approaches:
This strategy emphasises frugal living and uses small savings to help one reach financial independence.In order to retire early, those who follow the Lean FIRE model frequently have to make substantial lifestyle compromises.
The goal of the Fat FIRE strategy is to increase one's nest egg in order to sustain a plusher and more comfortable retirement lifestyle. up order to reach Fat FIRE, people are frequently prepared to put up more hours or pay more money.
In order to achieve the objective of early retirement, the FIRE movement places a strong emphasis on ideas like high savings rates, investing methods, and cutting back on needless spending. Remember that hardly everyone can implement FIRE since it needs strict financial planning and discipline.
Source: This pic is also from et wealth .Please note and its beautifully explained . Economic Times ET Wealth-Oct 30th -5th Nov 2023