Investing

INVESTING

Financial Independence Retire Early

WARNING :

I am not a Financial Advisor.

I am not qualified to give advice.



It's up to you to do your own research, seek professional advice if you need it to make your own decisions.



Few Financial Advisors Offer this sort of advice


To realise the opportunities that life has to offer it is important to apply some critical thinking to your goals and aspirations.  Without this your path and realisation of one goal may conflict or make other more difficult to reach. Letting events dictate your life is not the best way to make progress.

In retirement, I have looked back on my life,  work, marriage, bringing up children and thought it would have been nice to have a mentor who I could have discussed the many opportunities I have had and some I have not taken.

The age that people become financially independent and how much money they  require will depend upon many factors. For many FI is achieved at retirement, today 68 or beyond. For others it can be as young as 30 and for you anywhere in between.

I am therefore providing some links and thoughts that may help you plan how to achieve your life goals.



There are no right or wrong answers only better or worse decisions.





So what is F.I.R.E.

  • Financial independence (FI) is generally used to describe the state of having sufficient personal wealth to live, without having to work actively for basic necessities. For financially independent people, their assets generate income that is greater than their expenses.
  • Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) - quitting your job/career and pursuing other activities with your time.
  • FI/RE is about maximizing your savings rate (through less spending and/or higher income) to achieve FI and have the freedom to RE as fast as possible. The purpose of this is to introduce the concept of FI/RE strategies and techniques at an early age so you can advantage of the magic of compound interest.  My advice is to make saving, however small, a regular part of your financial independence investment strategy.
FI/RE is about:
  1. Discovering and achieving life goals:  “What would I do with my life if I didn't have to work for money?"
  2. Simplifying and redesigning your lifestyle to reduce spending. Your wants and needs aren't written in stone, and less spending is powerful at any income level.
  3. Working to increase your income and income streams with projects, side-gigs, and additional effort
  4. Striving to save a large percentage (generally more than 50%) of your income to accelerate achieving FI
  5. Investing to make your money work for you, and learning to manage/optimize those investments for the unique nature of FI/RE
  6. Retiring Early

FI/RE is NOT about:
  • Gaining wealth for the purpose of excessive consumption
  • Taking the slow road, or the traditional road to retirement
  •  Becoming financially independent requires hard work and a healthy attitude towards money, but also a degree of privilege and sometimes luck as to when you were born and the state of the world economy at the time.  I was born just after world war II, my parents were teenagers during the war, how different were our life opportunities and life choices.


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