As I have written before FIRE is ‘financial independence, retire early.’ However, why do people pursue this? What are the reasons?
Dave Ramsey always says ‘Live like no one else, so you can live like NO ONE else.’ While he is best known for his advice on becoming debt-free, his methods and mentality are also in the pursuance of financial independence.
Fortunately, there are different routes and it is not a one-size fits all. What works for you does not work for your neighbor.
Now, why? The easiest way to figure this out is to envision your life in 5 years, based on your current trajectory. Do you think you will be happy? Is your job based on contracts and you know when it will end? This is where FIRE comes in.
Particularly FINANCIAL INDEPENDENCE. Being comfortable enough where you do not have to work unless desired. The whole goal is to accumulate enough assets that result in enough passive income that provides enough money in perpetuity.
This makes the financial independence more like financial freedom. Essentially no longer tied down to any 9-5 job, and you’re able to pursue a career or lifestyle you have always wanted.
The RETIRE EARLY part of it seems a bit understated, most of those that reach FIRE do not fully retire. As they still retain a career but make their own hours. However, if you want to be a beach bum, then if you reach FIRE there is no stopping you. The point is that now you have the independence, the freedom to do what you want, without the shackles of a 9-5 job.