What is Financial Independence Retire Early (FIRE)?

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.

First Principles is a foundational proposition or assumption that stands alone and cannot be deduced from any other proposition or assumption.

Fire and Elon Musk's 3 steps for First Principles thinking

Step 1: Identify and define your current assumptions.

It takes decades to be able to save for retirement and you need millions of dollars to be able to retire comfortably.

Step 2: Breakdown the problem into it's fundamental principles.

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.

Step 3: Create new solutions from scratch.

Shelter = House Hack

Transportation = Bike + Public Transit

Food = Groceries + Growing Own Food

Medical = Staying Physically Fit, Proper Nutrition, Preventative Measures, Insurance

Clothing = Second Hand

Goal of Fire

Have enough savings, assets or passive income to be able to cover your living expenses indefinitely (with a high or acceptable probability of success).

3 Steps to Achieving Fire (Ready, Aim, Fire)

1. Determine your needs (monthly expenses)

2. Save 300x monthly expenses or develop passive income to cover monthly expenses

3. FIRE, drop mic

Don't Think You can Achieve FIRE?

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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