Financially Independent Retire Early: At present, every working person starts planning for retirement at the age of 40 instead of 60-65, so that he can spend the rest of his life with his family and travel- Could fulfill hobbies like travelling. But this is possible only when he is completely financially independent. Keeping this in view, people’s trend
is moving towards financial independence, retire early (FIRE). Now the question arises that what do we have to do to become financially independent.
What is FIRE strategy-
FIRE strategy is an effective way of saving and investing. In this, the person works for many years and saves 50-70% of his annual income. However this is not possible for everyone.
how to make strategy
1. How much money for retirement-
Aim to save 50-70 percent of your monthly income. Saving 50-70% can impact current expenses. You will have to create a corpus of 30 times more than your current expenses for retirement.
2. Increase income –
You have to save 50 to 70% of your salary every month. However, in this inflation situation it may not be possible to save half of one’s income. For this you can do part time job. You can change job for better salary.
3. Reduce expenses –
You can use many tips to manage expenses. Like- driving an old car instead of a new one. If you live in the city, use public transport. If you are a credit card user, avoid credit card loans and use them for benefits like rewards and cashback.
4. Invest-
If you are planning for early retirement, then invest as much money as possible in investment. You get high returns in investment in the long term. With the help of a financial advisor, you can invest in any reliable and high return policy like mutual fund, PPF, bank FD etc. Investing in FIRE strategy is the best option.
