FIRE Movement – The 10 Pillars

FIRE Movement – The 10 Pillars
November 5, 2019 Stacey Corrin

The 10 Pillars of the FIRE Movement

Want to Retire Early? Consider the FIRE Movement

 

If you thought you had to wait until your 60s to retire, think again. The FIRE Movement (Financial Independence, Retire Early) is changing the way we think about retirement. The goal is simple: save and invest money so that retirement is possible in your 30s and 40s.

 

The benefits of the FIRE Movement are substantial. Being able to give up your day job and enjoy a relaxed retirement while you’re still relatively young has many advantages. And anything that encourages people to think about a retirement plan, has to be a good thing. But it doesn’t come without a lot of hard work and discipline. It also means you have to make sure you budget for unexpected events so you don’t have to apply for unnecessary short-term loans or credit cards.

 

In order to retire at such an early stage, your saving and investing has to be quite aggressive, meaning that the FIRE Movement is not for everyone. You will need to save half your income or more in order to be able to retire so early. This means keeping expenses as low as possible and, ideally, your income as high as possible. Inevitably, there will be many sacrifices along the way.

 

Some critics of the FIRE Movement say that it is only for the rich, as it can be difficult to hit the necessary savings rates on a low income. However, if you’re smart about your spending and know how to invest your money, the FIRE philosophy can pay you back many dividends.

 

Here are our 10 FIRE Pillars to help you get started:

 

FIRE Pillar 1: Cut Housing Costs

 

Housing is likely to be one of your biggest outgoings every month, so if you want to retire early, you’re going to need to cut costs. We take a look at ideas to help keep your housing bill to a minimum.

 

FIRE Pillar 2: Spend Less on Food

 

Say goodbye to eating out and hello to packed lunches and batch cooking. In order to succeed with the FIRE Movement, you need to think of food as a necessity, not a luxury.

 

FIRE Pillar 3: Buy Used Cars

 

New cars lose a substantial of money the second you drive them off the forecourt. We take a look at how to be intelligent with your cash and drive smart.

 

FIRE Pillar 4: Find a Cheaper Phone Contract

 

FIRE Movement disciples shouldn’t be wasting money on an expensive phone contract. Follow our tips to help you reduce your monthly bill.

 

FIRE Pillar 5: Cut the Cord

 

Find out how to watch all your favourite television shows without the expensive monthly cable or satellite costs.

 

FIRE Pillar 6: Develop Smart Financial Habits

 

Being able to retire early is only possible by being on top of your finances. We explain everything from multiple income streams to side hustles and show you how to make sure your money works for you – not the other way around.

 

FIRE Pillar 7: Find a Side Hustle

 

There are hundreds of ways to maximise your income with a side hustle, a job that you can do on top of your full-time job. We take a look at some of the most lucrative.

 

FIRE Pillar 8: Embrace The Minimalist Lifestyle

 

Living the FIRE lifestyle doesn’t necessarily mean you have to deprive yourself. Concentrate on memories and experiences rather than material goods.

 

FIRE Pillar 9: Low-cost Index Fund Investing

 

the FIRE Movement is about much more than just saving; you need to invest your money, too. Find out how to invest in the stock market with index funds.

 

FIRE Pillar 10: Practice The 4% Rule

 

How do you know when you have enough to retire early? FIRE Movement followers suggest using the 4% rule as your guide.

 

The focus of the FIRE Movement is simple: acquire enough assets so that the passive income from these assets gives you enough money for all your future living expenses so you can retire early. By following the 10 FIRE Pillars, you can work towards your early retirement goal.