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Unlock Financial Freedom Mastering the FIRE Strategy 🔥 for Early Retirement!
Mar 17, 2024
"Embark on a journey towards financial independence and responsible retirement planning with the FIRE (Financial Independence, Retire Early) strategy. In this insightful video, I outline practical steps and mindful approaches to secure your financial future. From prudent saving habits to diversified investment strategies, learn how to navigate the path towards early retirement with confidence and responsibility. Take charge of your financial destiny and unlock the door to a fulfilling retirement on your terms
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0:00
Hello, welcome again to the budgeting immigrant show
0:03
I am your host Inos. It has been a while, I know. You haven't seen me for the last three months
0:09
if not more. I've not been running away from you. So many things have been happening in my life
0:14
that I'll definitely want to share with you as time goes on. The biggest of which is
0:20
my wife and I bought a home. We bought a home in our dream neighborhood and we love it. We are
0:24
looking forward to all the experiences and all the fun and loving experiences we could build together as a family in this new home
0:35
Throughout the period that I've been away, I haven't just been gone in the vacuum
0:41
I've been following financial Twitter, I've been following financial Instagram, I've been following my favorite financial shows on YouTube
0:50
And in watching all of them and in the discussions that have been coming up, I noticed a pattern that comes up whenever people talk about the fire movement
0:57
The fire movement, if you don't know about it, is the financial independence, retire early movement
1:03
It's basically, you want to retire before you are 65, so you can enjoy what life offers you in your early age
1:11
And a lot, I believe in fire. Before I go any further, I believe in fire
1:15
I'm a sound supporter of it. I am a proponent of it, and I try to apply those principles myself
1:21
But in my own wisdom, or I think that people are applying fire
1:27
in the wrong way. I've seen so many people say you want to retire by the time you are 35
1:33
So catch yourself from all the fun things in life. Do not do anything fun. Leave on probably 10
1:39
of your income save 90 of your income And then when you 35 after working 10 years in the workforce you can retire And then you live on a percentage of it for the rest of your life onto social security heads
1:53
That's a great idea. It works. I mean, everybody's life is different. And if you want to have
1:58
independence of your own time and do whatever you want with a little bit of money and you feel
2:03
you can make that work for you, perfect. But I believe that if you are working, you need to be able to
2:09
have a sense of purpose and enjoy what you're doing. And one way to be able to enjoy what you're doing
2:15
is be able to at least provide yourself with some of those things that will keep you going
2:19
That nice shirt today. Or maybe that nice people will hate me for saying this
2:24
But maybe that nice phone two years from now, if you've saved enough money and you can afford to buy it
2:30
without hitting a huge dent to your finances. Now here's how I advise that you do fire
2:36
And this is my own words. Please. I believe that the purpose of fire is to be able to have independence of your time
2:46
It's be able to choose what you do and make sure you love it. So if you're going to do it, try and save at least 25 to 50% of your income
2:55
Have a long-term plan. Remember, it's not about how much you put into the market when you're invested
3:01
but it's about how long you are in the market. So give yourself ample times
3:06
It's starting at 25 and you feel like, hey, I love working
3:11
For me, I love working. I would love to work. I love my jobs
3:15
And so I would love to work there probably to love 50, 55
3:18
And then when I get to that age, I decide what do I want to do less? So I try to save 25 to 50% of my income
3:26
try to give myself at least one or two fun things every month so that I feel a sense of purpose of why I working so hard But at the same time I try to never go over my budget So if I cannot afford whatever nice thing I want to get because it not going to work with my budget
3:44
instead of just letting it go, I save towards it. How long will I be able to save to get it
3:49
Three months. I save that and then I buy. But I always try to reward myself for the hard work I put in in this workforce
3:57
Working in the US is not easy. You have to go through the stress of layoffs, office politics, all those things
4:02
And you want to make sure that you are not feeling like you're sleeping out with your life
4:07
As you stay in the market and as you invest your money, your money tends to grow
4:11
And you'll retire whenever you want to retire with independence of your time
4:17
Independence of your time is not just staying at home. You could have a side hassle that tends to make you money
4:24
or you could write a book that would become a bestseller. You never know. But independent of the time, it's not just staying at home
4:31
By using your time to do something that you are happy about and can reward you in a way that you really, really love
4:37
And so if you're going to do fire, here's my advice. Make sure that you give yourself a long time to be able to save enough money
4:46
so that when you retire, you are not just retiring with a small amount
4:50
and kind of living on mini amounts until your social security hits
4:58
Make sure that when you are planning your fire strategies, you identify what you want
5:03
Is it independence of your time? So you find a job, maybe when you are 50
5:07
you can quit your stressful job and find a job that you love that is less stressful
5:11
even though it's going to pay you less because at that moment the money doesn't matter. Make sure you identify your strategy and then work towards it Third one make sure you have a goal as to an amount you want to save And make sure it is meaningful
5:26
It is not, I just want to retire 35, so I'm just going to save the small amounts of money
5:30
and just move on. No. How much do you feel you need you to comfortably live
5:35
Make sure you identify that amount. Make sure you set a goal and make sure you work towards that goal
5:41
And again, it's about time in the market. So plan the time
5:45
I've reached by how much interest you're going to be getting on your stock investment
5:51
and you can identify how much you'd have by whenever you want to retire
5:56
I, for one, believe that if you retire 35 and you're staying at home and all your friends are going to work, it's kind of boring
6:03
I would prefer, and that is me, to even if I have enough money at 35 to retire
6:09
instead of retirement, find a job that I love that gives me all the flexibilities that I would love and enjoy
6:15
and use that time to create an experience with my family, enjoy what life has to offer
6:23
but not cut myself away from an income, and continue to save until probably I hit Social Security age
6:31
and then I can just cross my leg every time. I'll probably never stop saving
6:35
Even when I hear Social Security age and Social Security money keeps coming in
6:40
I don't know, I'll probably invest it or something. I'll probably never stop saving. It's just my mindset and how I am
6:45
But that's me. And as I always say, talk to your financial advisors and talk to whoever is your financial coach before you make a decision
6:56
Thank you once again. Hope you like my video and subscribe and catch you later. Bye
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Financial Planning & Management
Retirement & Pension
Investing