FI or FIRE stands for Financial Independence/Financial Independence Retire Early.
The concept is spending less and saving more, investing the savings to create income to live on in the future.
One of the original bloggers in this space is Mr Money Mustache, in his post Shockingly Simple Math Behind Early Retirement he explains how easy it can be by spending less and investing to retire in under 10 years.
50% savings rate is the target for most FI people.
This seems huge compared to the 10% most average people save. Though it can be done by cutting a lot of the waste and unnecessary crap out of our first world lives.
Cost cutting ideas:
- Cooking at home
- Packing lunches for work
- Buying cheap used cars opposed to loan or leasing new
- Buying or renting affordable houses instead of million dollar mansions
- Biking occasionally instead of driving car
- Swapping Netflix for Foxtel
- Optimizing mobile phone plans
- Travel hacking holidays with points
More reading on FI can be found at links below –
USA based content
Share your favourite FI content in the comments below.