Do This To Retire At... 30

QUOTE OF THE DAY

DO THIS TO RETIRE AT… 30

415 Words | 1 Min 28 Sec Read

Early retirement is everyone’s goal—to retire at 30 years old and spend the rest of our time doing what we want when we want. It's really sad because it means we are trying to escape our current life, but for most, the goal is peace, quiet, and freedom, and typically that’s not achieved until the average age of 65. There is, however, a movement called FIRE.

• Financial

• Independence

• Retire

• Early

This is just a group of people that want to live financially free and retire young, and they have cracked the code of doing so down to the point where they understand that it’s just a case of math and a theory.

That theory is that as long as your investments are making 4% a year (after inflation), you can live off those withdrawals as a salary for the rest of your life. Depending on how much money you want to live off a year will be the deciding factor in how much money you have invested.

In recent years, many people have embraced pursuing a FIRE retirement but It’s not easy to achieve, however, as it requires you to save up to 70% of money you make every year! Which means only when your savings reach approximately 30 times your yearly expenses, or roughly $1 million, you may quit your day job or retire from work altogether.

Hmm, not as easy as it originally sounded, but if that's the life you want to live, those are the sacrifices you have to make.

There are different types of fire that will determine the life that you live.

Fat FIRE: This is for the individual with a traditional lifestyle who aims to save substantially more than the average worker but doesn’t want to reduce their current standard of living. It generally takes a high salary and aggressive savings and investment strategies for it to work.

Lean FIRE: This requires stringent adherence to minimalist living and extreme savings, necessitating a far more restricted lifestyle. Many Lean FIRE adherents live on $25,000 or less per year.

Barista FIRE: This is for people who want to exist between the two choices above. It’s for those who want to quit the nine-to-five rat race and are willing to cut back on their spending while working only part-time to do so.

ACTIONABLE NEXT STEPS:

Explore the FIRE movement yourself, you can find Reddit groups on the topic such as this one here with millions of members that are all striving to achieve early retirement whilst sharing their trials and tribulations along the way.

TAKEAWAYS:

The FIRE movement is a movement with the goal to retire early and when you break it down you can achieve FIRE a matter of 3 ways:

• Fat FIRE

• Lean FIRE

• Barista FIRE

BOOK OF THE WEEK ⤵️

The book of the week is ‘The Lean Startup’ by Eric Ries, and in the spirit of entrepreneurship, this book fits right in. The author teaches you from first-hand experience how to create a business in the most efficient way possible in modern times, speaking directly from experience. Check it out!

CREATOR OF THE WEEK ⤵️

@inthewvlogs

It's incredibly sad, but you CAN make a change. #fyp #foryou #motivation #educationsystem #theyouth #youngpeople #schoolsystem #educations... See more

The creator of the week is @inthewvlogs. He makes inspirational and educational content in a very straightforward and real format, covering various topics from the education system to mental health that some would see as slightly controversial but necessary to hear. Check him out.

LESSON OF THE DAY ⤵️

The path to something magnificent starts with one decision.