A strategy aimed at achieving financial independence through aggressive savings and investments to retire earlier than the traditional age.
The FIRE model emphasizes living below your means, saving a significant portion of your income (often 50% or more), and investing wisely in assets that generate passive income. The core principles include: 1) Track your expenses and develop a budget; 2) Increase your income through side hustles or career advancement; 3) Invest in low-cost index funds or real estate; 4) Aim for a desirable withdrawal rate (commonly 4%) from your investment portfolio to sustain your lifestyle during retirement. By adhering to these principles, individuals can achieve financial independence and retire much earlier than the conventional retirement age.
It's not about how much you make, but how much you keep and how hard it works for you.
