Financial Independence Retire Early Explained – Using The FIRE Movement 💰

65 Comments

  • Found the FIRE movement about a year ago when I stumbled upon Mr. Money Mustache's website. Completely changed my life.

  • I remember you mentioning FIRE on one of our calls. The idea of retiring abroad has been on my mind. Seems like it could be a good way to keep expenses low and stretch retirement dollars. Need to do more research on the idea, but it's enticing.

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  • How can someone on an income making $11 an hour retire early? I'm 25 and I would like to retire before I'm 40 but it feels like I need to be making 6 figures before I can even consider reaching that goal.

  • If you can’t tell by my channel name, yes, yes I’m all in on FIRE! Lol

    Very well done! New subscriber, I’ll have to binge through your channel!

  • If we can get a national healthcare plan it would go a long way towards helping everyone with FI/RE. I swear some of the Health Insurance monthly premiums are enough to give me heartburn.

  • The other positive of FIRE is it teaches you to live on half your income. I just ran the numbers and between my job of $65k and one rental home of $15k which I own outright, After taxes and retirement contributions, I've been living on $1,675 net per every two weeks for a total of $43,550 per year net. With $1.2 million now saved, I can withdraw $48k per year at the 4% safe withdrawal rate. I ran the tax calculations which in my state there are no state taxes on "retirement income" and after paying taxes comes out to $43,900 or 1,688 net so yes I am technically financially independent but still afraid to take the final leap even though my wife wants to continue to work and will supply health insurance.

  • To most, retirement means sitting on the beach under the sun and drinking cocktails. The truth is far from this cooked-up vision. Retirees get bored or disgusted because of a purposeless life and are far more likely to develop physical and mental ailments. Retire early?—no, thanks.

  • What are the actual steps by steps? If someone doesn't have a good job, pensions, work benefits, how can one really save/invest. Curious to know.

  • I can see building in the commute time but recovery time? That's kind of ridiculous since most people aren't hammering away doing hard labor for 8 hours a day. That being said thanks for the information.

  • This is a very interesting concept for sure. Who wouldn't love to spend their lives financially free, and pursuing their dreams?! However I work in health care, and I've seen first hand the financial devastation caused by unexpected illness and injury. Have you seen the Afford Anything podcast featuring Suze Orman on why she hates the FIRE movement? I made a few comments there that better explain my worried about the people who do this without a huge nest egg and kick ass insurance 😀 I'd love to retire early but would need to be hugely prepared! Thanks for the vid ❤️

  • While I can appreciate many of the savings and thrift principles behind the FIRE movement, the math does not make sense to me for people to be able to retire comfortably in their 30s with only a decade or so of work at average or slightly above average salaries. The stories of these people are usually light on substance, I am guessing that many of these people worked in areas where even though their salaries may have been average, they either made it big on stock options or were in specialized fields where bonuses that were many times their salary were achieved. I tend to think that their stories usually omit this fact.

  • I seen your YouTube video on my really successful Financial friends computer and in his favorites as number one. I'm so glad I looked in his favorites because I love you man. Except he may read this now.

  • F.I.r.e : tip the strainer when you wash dishes before you apply soap. Can catch alot of food. Enough for 7 to 10 meals.

  • I’ve seen this movement continue to grow for years, however, I don’t really understand how people can live like this… All of this saving and gambling seems excessive and irresponsible. The assumption with the 4% rule seems absurd, owning equity always has risk, so it really seems living on edge. I might be being a little harsh but I’ve struggled to comprehend how people can be so blind to the risks in the current economy. Maybe it’s me or something but this movement seems like a good way to get screwed at 70.

  • Step 1: Get a high paying tech job, like a software developer.
    Step 2: Save 75% of your income by eating rice and beans and live in a van. Give up contacts for hipster glasses.
    Step 3: Put everything into low expense ratio S&P 500 index funds.
    Step 4: Hit $1,000,000 and draw only 4% of it to live on every year.
    Step 5: Move to Florida so you don’t have to pay income tax. Six other states have no state income tax, but cost of living and climate in Florida are most favorable for many. Find a retirement community where everyone gets around in bikes or golf carts so you don’t need a car.
    Step 6: Do nothing for the rest of your life. Like, you can’t afford to go anywhere or do anything. Just hang out with old people, I guess. All your friends will be at work.

  • You asked for comments, so here you go:

    A poor summary of the FIRE movement. One less YouTube yackster that I will need to follow!

  • My only disagreement is that I think people should start saving for retirement even with debt. Debt is a mindset and Paying it off usually only is a means to get back into it. #sadtruth

  • I don’t love my job. I love the financial security. Hopes and dreams don’t fund retirements and pay bills. Money does. Until such time as my portfolio income can fund my cost of living I will work as much as I have to in order to up my savings. Compound interest is much more significant if your grub steak is significant. 500% return on $10K is great. But 500% on $200K is life changing.

  • Step 1) Save 1 Million Dollars and quit your job.
    Step 2) Invest in safe bonds that pay 2.5%.
    Step 3) Earn $25,000 per year in interest income.
    Step 4) Get your old job back because $25,000 isn't enough to live on.

  • Well done. Cost of work goes further if you have a wardrobe that is work specific etc. Pretty incredible when you think about it.

  • Jarad, you are a very attractive good looking and intelligent young man. But please, abbreviate a little bit. Come to the point quicker. I don't have the time to listen to bunches of pre-speeches. Sorry, no offence meant. I like you a lot. Thank you!

  • The FI/RE movement is one that I'm apart of. Working hard now so that one day I can choose when and what to work on. Great video, Jarrad!

  • Sure early retirement sounds great but nobody talks about health insurance. Here in the USA you don`t qualify for Medicare until age 65 and buying it on your own is very expensive.

  • I'm not sure I qualify to be considered a Member of the Fire Movement.

    My first day of Retirement was May 31, 2014, ~three months before turning 56. Some might consider me to be too old for "Membership."

    The most debt I ever had occurred in 1988. I bought a house for $86,000 and put $66,000 down. But since my mortgage payment was less than my rent had been, I had a plan (including an interactive amortization schedule on Excel) to pay off my $20,000 mortgage in four years. Then, my Grandmother passed and I "blew my inheritance," the result being that I became mortgage-free two years after buying the house.

    I have always paid my credit card balances in full every month. Some Financial Advisors would consider that to be debt, others don't. They can think what they want. I don't care.

    Regrets? Two…

    In 1988, I had my hand on the phone to buy 20 shares of Berkshire Hathaway stock when it was "only" $3,000/share. Had I done that instead of buying the previously mentioned house, I could have retired at 45 instead of 55.

    With the benefit of 20/20 hindsight, I now realize I should have retired 13 months before I did, at the end of April 2013. It would have been a TERRIBLE time for me to leave. In fact, it is highly likely that my Jerk Boss would have had a second…and possibly fatal…heart attack had I bailed out at that time, especially if I only gave him two weeks notice. Had he had "The Big One," I would have brought a 12 pack of beer to his grave and had my own special Tribute/Ceremony LOL

    I absolutely APPLAUD all who join the FIER Movement. I realized LONG ago that today's consumption-oriented Madison-Avenue-driven lifestyle leads one to fiscal bondage, something I NEVER wanted any part of.

    Great job, Sir. Thank you for getting the Word out and encouraging people (especially young people) to follow a different path, one that is CERTAIN to lead them to a happier Life.

    All Best, Sir!

  • I'm over 40 and on FIRE with my partner, aiming for it in the next 10 years. It's a challenge for us but not a struggle, we will achieve our target. FIRE for those younger than us unfortunately is a MASSIVE challenge but not impossible.
    FIRE with a long term partner and someone you love is the best move. Much easier to achieve FIRE in a sound partnership.
    My FIRE partner is a babe. Love to her.
    Work to be debt free from major financial investments such as mortgages is key.

  • Whether FIRE is appealing to you now depends on whether you love your job now or not. Think about it…

  • The Fire movement isn't some new, radical concept. I took the exact same steps starting in the 80's nd retired comfortably at 42. What is the big deal? Isn't it just common sense?

  • Don't just think of the monetarial aspect of early retirement. Develop a few cheap hobbies or passions to occupy your time, both now & in retirement. Having a lot of spare time with limited resources can be a real drag if you don't consider meaningful fulfillment.

  • Great video! I am motivated by this movement. I just spoke to my financial planner and he told me that I could retire by 55. I just recieved an over 25% raise. I want to retire from the rat race and to do something Im most passionate about. I will sacrifice to get to my end goal.

  • Very interested in the f.i. side and not so much on the r.e. side. This is just a good idea. Who doesn't want the ability to be able to take time off from work and not have to worry about how they are going to pay their bills. With the f.i. side, anyone who is f.i. will be able to take the time off and still be able to enjoy their time off from work.

  • 3:36 that guy on the left owns his own farm, but continued to work for Dunder Mifflin because he was best at it. Then ended up buying his own building.

  • The FIRE movement is irresponsible bc it does not account for risk. Risk in the market and risk in your or your spouses health. In addition to children and aging parents. It’s the worst mistake you can make in your adult life.

  • 6:43 I see what you are trying to do but I don’t exactly agree.

    1) most jobs the 1hr lunch is included in the 8hr workday
    2) people who are “financially independent” still have to take the time to eat lol
    3) people who are “financially independent” should probably still be taking time to get ready for their day. Whatever that is.

  • Man, great video. Now I feel like maybe I should work constantly until I have enough to retire early. But I am so old I'll barely have enough to retire in my 60's as is. I wish I wouldve found out about this stuff 10 years ago.

  • I don't think the FIRE thing makes sense. Well, let me say, some people say that they are on the FIRE program while going crazily into debt, traveling the world, living a wild luxurious lifestyle #travelblogger and doing zero investment, and defending the program and acting like jerks. Maybe that's what I have a problem with 🙂 lol Such as the credit card points thing and using that for travel, I just don't buy that. It cannot exclusively fund trips. It can, however, build debt like crazy. However, the people that are investing 50% plus of their income, and actively working toward the goal, now that is commendable.

  • Does anybody every talk about how to do it? And what you need to do and where you need to save?? It’s all just explaining early retirement

  • My husband and I are in our 50s and we started some retirement but we are far away from retiring. We are interested in figuring out how to increase our retirement and diversify our streams of income. Any advise.

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