FIRE - Financial Independence Retire Early

The Financial Independence, Retire Early movement aims to achieve financial independence and retire early.

Financial independence means a person does not depend on a job to make a living.

Members of this movement also see classic means of retirement and pension plans as insufficient.

Why would you work 40 years to live below what you made until then?

Why would you forfeit a large portion of your monthly salary, lock it away beyond your control, and get a weak promise for it?

This movement especially got traction in recent years when it became clear that the governmental pension plans were not able to fulfill their long-standing promises anymore.

Additionally, cuts to the promised pension rates are yearly by now.

The FIRE movement believes in saving monthly money in liquid assets to accumulate their individual FIRE number.

The FIRE number is the amount of money from which they can comfortably live when withdrawing only 4% every year.

This assumes a growth of around 8-10% of their assets each year to battle inflation.

Read more about the fire movement here.