How to Achieve F.I.R.E in 10 years

How to Achieve F.I.R.E in 10 years

Financial independence is a way of life built around self-sufficiency, moderate consumption, and control over one’s time. And seeking greater satisfaction from life outside the nine to five rat race. It gives them the financial breathing room to work part-time, do something that they enjoy, convert a hobby into a business, spend time with the family, etc.

Most important , F.I.R.E does not mean retiring early , it means you will be still working on what you love the lost for which you have trained , reskilled in these many years to earn an extra dollar.

Before following this approach, understand that FIRE method requires significant commitment to savings and investing. It may not be suitable for everyone as everyone's financial situation, goals and risk tolerance are different.

Also, this new lifestyle might be deeply gratifying, but comes with sacrificing too much.The FIRE movement is soaring in popularity–but early retirees report feeling lost and unfulfilled

Basic core parts of achieving F.I.R.E:

1. Save as high as possible ( 60 % +)  : This often requires an extraordinarily high savings rate, which means strict budgeting and frugality. This could lead to a lifestyle that some might find restrictive

2.Living frugally but not compromising on standards of living : Think carefully before buying anything. Many Fire savers avoid luxury items and save money in any way they can. You could use the money you save to pay off your loans more quickly or invest more money.

3. Earn more and Reskill : This will focus on taking extra consultancy work , demand for pay rise in your company , Changing jobs with a better salary , starting a side business which gives the second source of income and most importantly , focus on reskilling and retraining for a higher paid job

4.Invest wisely : You need to learn the tricks of equity markets and develop dep passion for personal finance on retirement planning and taxation. Understand the workings of mutual funds - why prefer direct funds , which funds to invest aggressively for this goal. Build an emergency fund of 1 year in case of any unexpected ocurrences.