The Essentials of FIRE: Financial Independence Retire Early

Financial Independence Retire Early

Financial independence retire early. You’ve probably heard the term, or its acronym of FIRE, at least once before. But what does it actually mean? Are people really able to retire early?  Here are the list of different types of fire.

1. LeanFIRE

Considered the minimalist’s approach to FIRE, you need to have an annual expense of $40,000 or less. This is suitable for individuals who have a frugal and minimalist approach to life. You’d need to carry through with this type of lifestyle to keep your expenses low and forgo the need for extra income.

2. BaristaFIRE

Rather than working at a high-stress job, you could take a step back and begin working a low-stress, part-time job you genuinely love to fill in the financial gaps. It would also be better if you get a part-time job that provides health benefits

3. CoastFIRE

This FIRE type is categorized as having enough money invested at an early age that you don’t need to contribute to your investment portfolio anymore. You will still have enough when you reach your retirement age.

4. FatFIRE

This type of FIRE is ideal for individuals who don’t embrace the full-on frugal lifestyle and like to have that additional cushion of passive income after reaching financial independence. Those pursuing FatFIRE would strive to have sufficient money to supplement a budget of $200,000 per year.

5. Pursue FIRE

Below are some of the unique advantages of pursuing FIRE. 1. Have More Options 2. Be More Prepared for Emergencies 3. Set Clear Goals

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