In “What is FIRE?” we mentioned that the ‘end goal’ of FIRE differs for everyone. For us, it is important to understand the purpose of gaining our financial independence. This understanding gives us the desire and motivation to continue following the ‘unconventional path’ of frugal living.
The question posed by FIRE is a fascinating one, and we see it as a more ‘sensible’ version of the classic:
What would you do if you won the lottery?
FIRE, or Financial Independence, Retire Early, is a fast-growing movement of people looking for a different way in life.
Saving a high percentage of your earnings allows you to retire significantly earlier than traditionally possible. The percentage of your earnings which you save is known as your savings rate. A popular target is to aim for the 50-70% savings rate bracket, allowing you to retire after roughly 9-17 years of work.
This opens a whole world of opportunities for the rest of your life.