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Have you been thinking of shutting down the PC and going on a vacation? Or just avoid work for a few weeks, to take a break? You are not alone. Professionals have experienced hard days, especially with years of slogging at their respective jobs. If you are in Canada, chances are high that you have heard about the ‘FIRE movement’. The FIRE movement is more of a mindset, which allows people to quit the rat race with effective financial planning, so as to enjoy a more fulfilling life. Here are some quick things worth knowing.
The relevance of FIRE movement
F.I.R.E. stands for Financial Independence Retire Early. While that may sound like a get-rich scheme, it’s not. The FIRE movement is more of a strategy, which focuses on key aspects to retire early. One of the important points of FIRE is high savings. There are various ways in which you can save, but the simple idea is to save the maximum, so that you don’t have to wait until 65 to retire. The next critical factor besides savings is to live a more frugal life, which eventually allows one to save more. This is the basic sacrifice that you make to achieve financial independence. Of course, there is a need to have enough focus on investments, from dividend paying bank stocks to other planned investments.
Knowing the options
There are different ways you can start using the FIRE movement for your financial goals. The first one is LeanFIRE, where you spend as little as possible for now and continue to live modestly after your retirement. The next option is FatFIRE, where you save enough to have a retired life that’s more about comfort. There is also BaristaFIRE, where you work on retiring early for sure, but continue to have a supplemental income from a profession or work that you truly enjoy. Having a CLEAR financial goal is important for anyone to get started.
How to adopt the FIRE lifestyle?
- The answer is rather simple – Start with savings. People who seriously have adopted the FIRE lifestyle in Canada save as much as 70% of their income for an early retirement. Of course, this means getting used to the new life of spending less.
- The next important factor is to invest. Instead of keeping the money in a savings account, think of a brokerage account, so that you can invest rightly. The right investments will allow you to increase your money in a planned manner.
Check online now to find more on how people are achieving financial independence with FIRE.
