If you have been looking at the possibility of quitting your job or making major life changes, you have probably come across the concept of FIRE. This idea is the blending of 2 concepts. Becoming financially independent and of retiring early.
FIRE is an acronym for that exactly: Financial Independence Retire Early. It’s a concept that is really gaining momentum, especially with the younger crowd. People are starting to realize that the “dream” of going to school and getting a great corporate job isn’t all that its cracked up to be! And who can blame them! Sitting inside an office somewhere, doing small meaningless tasks all day doesn’t sound that awesome! Yet, that is what has been encouraged for years!
People are starting to wake up and realize that this isn’t the only way to go through life! They are realizing that its actually quite miserable to go through life this way! That’s why the FIRE movement is gaining momentum.
However, achieving FIRE is no easy task! It takes a lot of work and self control. It can often require extreme budgeting or creating some type of business to sell products or services.
Building your own business takes a lot of effort and it won’t happen overnight. BUT it sure beats working all of your life for someone else! Often people can achieve FIRE by budgeting and building a business in say 10 years. As compared to working for someone for 40-50 years.
Let’s talk about the 2 concepts in FIRE more specifically.
Financial Independence- This is achieved when someone has the means to be able to decide if they want to work or not and still get or stay ahead. Instead of having to work for money, they have been able to get their money working for them. Maybe they have a large of money saved up that is invested, and they can live off the dividends alone. Or maybe they have a business that gives off passive income every month that they can live off of (this is my favorite!). This could be from an online business of some sort that sells physical or digital products, or it could be from a real estate portfolio, or it could be a bricks and mortar business that is set up so the employees can do all the work. There are many ways to get passive income, or your money working for you. Once your passive income exceeds your monthly expenses, you are financially independent!
Early Retirement- This is just what it sounds like. Being able to retire early. Most of society works until they are 65 or so, as that is the generally accepted rule. Being able to quit your job early is thought to be reserved for only the ultra wealthy. This doesn’t have to be true however! Once you build up your passive income, you can retire anytime you want!
Once people get to this position in life, they often switch back and forth between the 2 ideas. Once they build up their passive income, they may decide to retire early for awhile. After some time passes, they may decide to take a job with lower pay because they love the job. They are still financially independent as they are only working because they choose to, however, they are no longer retired.
The ultimate goal is to become financially independent. Then people can decide if they want to keep working or retire, they can take an extended vacation if that’s what they feel they need to do. It opens up so many options for people and can make life much more enjoyable!
We would love to teach you how you can achieve FIRE through the most reliable process on earth: Owing Real Estate. We show you how to build your real estate portfolio, no matter what your current financial state is! This is achievable for everyone and we believe everyone should have access to these powerful wealth building strategies.
If you would like to learn more about creating passive income through real estate click here! You will get sent to a free article explaining more about what investing in real estate can do for you!
See you there!