This post is inspired by a new blogger on the block, Chrissy from the blog Eat Sleep Breathe FI. Chrissy writes about FI (financial independence), money, and life.
When she wrote a blog post about FI writers in Canada, I wanted to add my blog to her list so and I sent her a list of all my podcasts related to the FIRE movement. Since I did it for her, I decided to share that list with my readers.
What is the FIRE (Financial Independence, Retire Early) movement
The FIRE movement is a financial strategy that aims to achieve early retirement through disciplined saving and investing. As corporate loyalty diminishes and job security becomes uncertain, many individuals are seeking financial independence to reclaim control over their lives. The traditional model of working for a single employer until retirement, once common among baby boomers, has eroded, leading to alternative work models like the gig economy and the FIRE movement.
How to Achieve FIRE
People pursuing FIRE prioritize a high savings rate—often well above the conventional 10%—to accelerate their financial independence. They reject consumerism, choosing to live modestly rather than upgrading to larger homes or luxury cars. For them, the ultimate luxury is time: freedom from long commutes, rigid work schedules, and reliance on a corporate paycheck.
How to Calculate the Necessary Savings for FIRE
A simple formula helps determine the amount needed for financial independence:
- Calculate your annual expenses.
- Multiply that amount by 25.
For example, if a household spends $50,000 annually, they would need $1,250,000 invested in an index fund. Following the 4% withdrawal rule, they can sustainably withdraw $50,000 per year indefinitely.
Is FIRE Feasible?
Achieving FIRE is primarily about intentionality. A couple earning $50,000 each per year could choose to live on one salary while saving and investing the other. If they invest $50,000 annually with an 8% return, they would accumulate $1,250,000 in approximately 15 years. Using the 4% rule, this amount would generate $50,000 per year in passive income, enabling early retirement.
Of course, variations exist depending on income levels, savings rates, investment returns, and market fluctuations. FIRE is a flexible framework rather than a one-size-fits-all formula.
Learn More About FIRE
I’ve recorded multiple podcast episodes featuring individuals who have successfully achieved financial independence or are actively working toward it. Tune in to hear real-life stories, strategies, and insights into the FIRE movement!
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