If you have been involved at all in the financial space within Singapore, you will have heard of the word “FIRE” being used several times.
What Is Financial Independence, Retire Early (FIRE)?
“FIRE” is a synonym for Financial Independence, Retire Early.
The idea is that through a combination of aggressive savings and or aggressive expense cutting, anyone can retire far earlier versus waiting to retire in their 60s or 70s.
Proponents of the extreme saving lifestyle often aim to save 70-80% of their monthly/annual income. Their eventual goal often is to save 30X their yearly expenses, often about $1 million, before they completely quit employment altogether.
Borne from the book “Your Money or Your Life” by Vicki Robin and Joe Dominguez, FIRE encompasses the idea that every dollar you earn, you are actually trading a small tiny part of your time, and thus, your life for.
Every expense is