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Before you continue reading on, do check out our previous post “Types of Insurance Products that I Personally Bought as Working Adult” if you have not done so. If you have already read it, thank you for your support and do read on to find out more about the “FIRE Movement”.
For those of you who are avid readers of financial stuff and personal finance, I believe you will have come across the term “Financial Independence, Retire Early” or acronym “FIRE” in short.
What exactly is the FIRE Movement and why are there so many people talking about it? Just by doing a simple google search on the term “FIRE Movement”, there are about 275,000,000 results for it.
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| source: google |
As the term suggests, the FIRE movement means being able to retire early (not by a few years but by a few decades) and have enough financial resources to support your lifestyle without having to work. You will work very hard, spend very little, save and invest alot till the point you do not have to work for money.
Of course depending on your lifestyle, if you are someone who wants to have a more luxurious lifestyle compared to someone who prefers it simple, then you might have to work harder or longer before you can reach FIRE.
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| source: pexels |
From the google search results of “FIRE Movement”, below are websites which i found to have more relevance to Singapore context that you can check it out.
This recent article by Singsaver is the one that I personally find it the best in knowing more about individuals who have achieved FIRE. It goes quite detailed into the individual’s past and also have pictures and videos to show for it. You can check out the article here https://www.singsaver.com.sg/blog/early-retirement-experience-at-the-age-of-33 and watch the video interview below.
So after reading and watching all this stuff about FIRE Movement, how do I know if I am in the “FIRE” or not and how long more before I can be there?
That's when I decided to come up with this "Financial Freedom Calculator" aka FFC that allows you to calculate three key facts (where you are now, where you want to be and how long will it take).
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| source: giphy |
With this Financial Freedom Calculator, you can now project how long will it take before you reach FIRE or how much more will you need in order to hit the target date that you want to achieve FIRE.
Click here to download it: http://bit.ly/financialfreedomcalculators
Below is a screenshot of how it looks inside.
There are two tabs. The first tab looks at the lump sum that you need to have now based on your spending in order to retire. You will need to adjust the variables highlighted in blue according to your situation to find out where you are on the FIRE Movement scale. You could be halfway there or already on FIRE.
The second tab looks at the investment amount and the income that you get from it to sustain your monthly expenses. You may not have alot of cash on hand but you have investments that are giving you income on a regular basis such as dividends from stocks or rental income from real estate.
With this two Financial Freedom Calculators, you now have a rough gauge on your current financial status and the target amount or investment that you need to work towards to achieve FIRE.
Now that you know more about FIRE Movement, do go ahead to download the calculator and see how you fare. Who knows you could have retired a long time ago. Let me know what your results are and how many more years before you reach Financial Independence =) Go ahead to comment it here and don't forget to subscribe via email or like our Facebook page for the latest updates! Stay tuned for our next blog post as I share about the 7 things that you can invest in to grow your money in Singapore that I have personally done before. Also let us know what you would like us to blog about next!
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