Two weeks ago, I read about a new financial term called FIRE. It stands for: Financial Independence Retire Early.
Basically what it means to be on FIRE or to be FIREd is that you are saving aggressively, up to 70~80% of your income for about 10 years, then retire early and continue living frugally.
-“It didn’t matter how much you saved, it was a goal post that kept moving. And I was seeing people stressed out paying their mortgages.”-
Why people are willing to do this is because they recognize the treadmill of consumerism. When we get the next big car, we will be only satisfied for awhile, then we start looking at the next big car.
-“Ms. Rieckens, who works in recruiting, was initially reluctant to give up her BMW and beachy life and the prestige that went with it, until she saw a retirement calculator that showed they could retire in 10 years if they adopted FIRE and moved, or when they are 90 if they continued their upscale lifestyle in Coronado.”-
One of essence of FIRE is just this, start working with a retirement calculator. When we do so, we will ask one of the most important questions of our life: “What am I working for?”
Is it for Joy? Is it for Happiness? How to achieve Joy and Happiness? Is it from having more stuff? Is it by having more knowledge and experiences? Is it by spreading our love to more people and having more people that loves us?
FIRE asks us to look closely at the means to happiness and start designing our life.