FIRE describes a concept and movement dedicated to high savings rates and conscious consumption of resources to allow an individual to retire before the traditional age range of 55-65.
FIRE is about taking ownership of your personal situation and personal finances.
Think of FIRE as a First Principles approach to living your life.
It takes decades to be able to save for retirement and you need millions of dollars to be able to retire comfortably.
To retire I need enough passive income or savings to cover my needs and allow me to live indefinitely. I need to identify exactly what I need to survive and find the most efficient way to meet those needs - shelter, transportation, food, medical, clothing & consumables.
Shelter = House Hack
Transportation = Bike + Public Transit
Food = Groceries + Growing Own Food
Medical = Staying Physically Fit, Proper Nutrition, Preventative Measures, Insurance
Clothing = Second Hand
Have enough savings, assets or passive income to be able to cover your living expenses indefinitely (with a high or acceptable probability of success).
1. Determine your needs (monthly expenses)
2. Save 300x monthly expenses or develop passive income to cover monthly expenses
3. FIRE, drop mic
Check out the on fire podcast hosted by myself and Kellan Paniccia where we highlight over 50 people across Canada who have retired early.
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