FIRE is a lifestyle/investment plan with the goal of gaining financial independence and early retirement through savings. The model became particularly popular among millennials in the 2010s, gaining traction through online communities via information shared in blogs, podcasts, and online discussion forums.
Those seeking to attain FIRE intentionally maximize their savings rate by growing the gap between their living expenses and their income, and investing the difference. JL Collins, an author who has been called the "godfather of financial independence," has said:
"Spend less than you earn—invest the surplus—avoid debt. Do simply this and you'll wind up rich."
Reducing Expenses: Choosing to live more simply, for example by cooking at home instead of eating out, or buying more affordable items instead of luxury products.
Focusing on Financial Priorities: Having clear long-term goals, such as saving to achieve financial independence.
Investing Consistently: Setting aside most of your income to be invested in instruments that generate passive income, such as stocks, bonds, real estate or maybe you can choose Gold & Bitcoin in your portofolio
I love the idea of the FIRE movement and try to navigate towards it, but like anything in life there is a balance. Some people will not earn enough to free themselves early or may have to spend large chunks of their salary on supporting a family, so they are unable to accumulate too much. On the other hand, there are some people who go for the extreme FIRE strategy but it looks like they suck all the energy out of their lives, living on a pittance while they save money and wasting the best years of their lives just hoarding money. The silly thing is the habits become so ingrained they may not even get the pleasure out of an early retirement that they are seeking. Better to save and invest, but leave yourself some room to have fun and explore.