What is the FIRE Movement?

Photo of Charles from InfoSpike.com By Charles /
retire young
Disclaimer: This website is supported by its readers. I may earn commissions from clicks or qualifying purchases.

There is a lot of people saving for retirement. They put their goals to the 65 ½ age and start heading in that direction. But there are a few people that have made it their goal to retire early. These people have decided to jump into the F.I.R.E movement and retire in their 30s or 40s. Here are a few things to know about the movement and retirement as you may have never seen it before.

Explaining the F.I.R.E Movement

The word F.I.R.E means “Financial Independence Retire Early” The idea of the movement is to save as much of your income so you can retire 20 years or earlier than everyone else. The way that it works is that people save about 50 percent of their income or more.

The idea behind the movement is to keep one’s expenses very low while at the same time trying to increase income. By keeping your expenses low you will be able to save more money at a quicker pace. This means that you will be able to retire at the early age and enjoy life more fully in your youthful days.

The quest of retirement for the movement means that you can enjoy life on your time. Most of the people will want to work part-time. But that is all they work. Others opt not to work at all, so they can travel or do the things that they love to do. There are some things to know from the F.I.R.E movement.

  • You have to start working your dream.
  • You have to keep those expenses low.
  • Find ways to increase your income.
  • Saving must be a priority.
  • Do not use credit cards.

There is a lot that has to be done in order for you to be able to retire early using the F.I.R.E method. Consider these steps to start living your dream:

  1. Pay off all your debt and finish setting up a contingency fund.
  2. Save a percentage of your income in a retirement account.
  3. Pay off your mortgage early.
  4. Look at opening a second investment account.[1]

There is a lot that must happen in order for you to retire early. But taking the right steps can help get you to realizing your dream.

Retiring Early

There is only a certain amount of time that a person has to save for their retirement. If the time is wasted, then retirement will be postponed. Here are some things that you will want to consider before starting the process.

Waiting can be dangerous. There is nothing in the world that can tell you how many years you have to live on this earth. Some people retire early because they have gotten ill, or they might have lost their job. Start saving now while you can. Every bit of money will add up to help you reach your goal.

Retirement means new perspective. When you do not have to report into work and punch a clock you will find that you have time to fill. Many people look for ways to fill that time with a hobby or pursuing a new business path. Some will even just work part-time to pay the few bills they do have.

Stay invested wisely. The one thing that you do not want to have happen is that you run out of money early. Keep your money invested in a pension plan that is defined by an annuity. This will keep you from spending all of your money early by paying it back to you monthly.[2]

Being Frugal Helps

The idea of being frugal means being wise with one’s spending and not being overly generous. If you are looking to retire early, then a little frugalness will help. Here are some ways that you can be frugal, if you so choose to do so.

  • Cut those coupons out every week. This does not mean that you have use the little coupon on the gallon of milk all the time. But it does mean that when there is coupon that can be used to save you money, you use it. Coupons can save you a lot of money. This is money that you can move into a savings account for a later date.
  • Try not to break the law. Speeding can use up more gas than simply driving the speed limit. And do not forget that there is a hefty fine for speeding.
  • Credit cards are not your friends. The high interest rate is designed to keep people in debt for the better part of their life. If you have credit cards, then try to negotiate a lower rate with the company. The only thing you have to lose is gaining a lower rate and saving money.[3]


There are many ways to invest but only a few that make sense for your retirement plan. There are keys to wise investing that go beyond saving money. There is also the withdrawal of funds concept. Consider these thoughts when strategizing your path to retirement:

  1. You will need to know how much to live on year to year. This means you will need to know what kind of budget to keep.
  2. Know if you can take out the amount needed to live by each year. Length of time is what is at stake. If you cannot take that much money out and make it last, then a few more years of work with help.
  3. Determine which funds you should take the money from. Taxes will play an important role in helping you withdraw your money.[4]

Planning for Retirement

When it comes to planning for retirement knowledge of what and how you want to live matters. Company’s today are doing away with their retirement incentives. This means that you will have to take an active role in investing your own money. You will have to monitor and move money around when the time comes. This means setting up a flexible portfolio with stocks and bonds that mix well. If you have questions about the process, then the best thing for you is to ask for help.[5]

Dealing with all the Loans

Everyone has a strategy on how to pay off their debts and their loans. Some people like to focus on eliminating the home loan or car payments. While others have no problem carrying certain loans like student loans or personal loans. The fact remains that paying these off quickly is key to retiring early. What you will find is that you will have to develop a plan that works for you. Not every plan out there works for everyone because all people are different.[6]

Develop the Side Income

Once you have reached an early retirement there will be a drive to be productive. This drive is built into every person. Feel free to start up a hobby that makes you money. There are many ways of seeing this come to life. You could start a blog and pull traffic into your website. There is always the thought of selling pictures that you take of your journeys. The point in retirement is do things that you love and enjoy. There is nothing that says you cannot make a little money while doing it all.[7]


Thanks for reading this article! If you enjoyed the content, please share it!

Sharing is caring!

About the AuthorCharles at infoSpike

Charles is the founder of infoSpike.com. He enjoys real estate investing, personal finance, and marketing. Read more about Charles here.