The FIRE Movement

[jetsfan2013]

I recently caught up with a family member during quarantine who was raving about the decision she and her hubby made to go FIRE (Financially Independent, Retire Early). They had just paid off their last student loan debt, and were shopping for a multifamily rental property which would be a catlyst for retirement income as they get older. I was impressed that both of them were on the same page, handing in leased cars in exchange for one 8 year old Honda they share (they both work from home for their jobs due to the pandemic).

The retire early part of their journey they hope to accomplish by 2023, however I am curious if anyone else knows of/entered into the FIRE movement recently.

[ccquest]

I would certainly love to join it, but I also love cars, tech, and travelling so I don't think it'll happen for me.

For me, you have to find a balance on work you like (not necessarily enjoy, although I do enjoy mine for the most part) and saving. I can't really do any of the saving yet because of my massive student loans, but I have a plan to be fully done with those in 8 years (PSLF). The private loans I am trying to accelerate so I'm done within 5...then I'm buying a C8 Corvette (if I decide to stay responsible, gently used for a large discount off new but I will be keeping it a long time so who knows).

I took on a second job a couple months ago which I'm using to save for a down payment on a place, hopefully with a garage and in good condition to last me about 8 years before I (if all continues to go well) buy a much larger house with my girlfriend for kids down the line. Then the first place becomes rental income.

I'd like to get in the duplex/triplex business too, small enough to be reasonable but large enough to more than cover the costs to make it worth it.

Just hit 27 at the end of July.

[iced]

I'd probably already qualify for those pursuing Lean FIRE, but my target numbers put me closer to the Fat FIRE end of the spectrum, so I won't be retiring any time soon. There's a wide disparity among FIRE advocates that I've seen, ranging from people who are fine with living in a trailer in the middle of the desert just to be FI all the way up to those who plan on owning multiple homes around the world and traveling comfortably half the year.

I wouldn't say I'm "in the movement" and I don't strictly subcribe to it. I do, however, save over $50,000/year toward my retirement/FI goals and have cut back on some creature comforts that people far poorer than I indulge in to keep that pace.

[sxa001]

I am 32, my wife is 29.  We are still newlyweds (married November '18).  We want kids and the idea of retirement is a long way off, for me the goal is less about retirement and more about being able to live with less income if I wanted to leave what I was doing to go work doing something that I was more passionate about. 

I say this, knowing full and well that we are about to embark on the biggest most expensive journies of our lives (Home in 4-6 months and kids in the next year or two if things happen as planned).  The fact is, we will be working many years to raise any children that we may have, and put them through college and we will make a lot of sacrafices on the way.

I certainly know people who are on track to retire younger than 65.  I have read a few articles about those who are living on very strict budgets.  I think it is good to have a balance between enjoying life and just blowing money, and in the past my spending was terrible.  For me, the FIRE lifesytle (the stuff it would take) wouldn't really fully work for me but I could learn a few things and adopt those from those who follow it.

[Andypanda]

A lt od people who have adhieved FIRE might not want to publiciit, on the net in fear of unwanted scams or other unethical people.

[Anonymous]

Similar boat to your family member but took a bit of a fork a little further along the path. 

I bought a multifamily property with the idea of using tenant/s rent to pay for a good chunk of my mortgage.  Fixed it up putting 10k to 15k into the house to rent it out while I live in the apartment above the garages in the rear of the property.  Difference here is that I also bought the property with the idea of something happening to one or both of my parents I would have them move into the house so I could take care of them while we would both still have our own places and our independence from each other.  Well my father recently died of cancer and so my mother is moving into the house now.  I'm not going to charge my mother rent the only thing I told her is to pay for the houses utilities which she was happy to agree with. 

However, while not collecting rent I'm going to be saving money because on the weekends I'll get free cooked meals so less money to shell out on groceries.  I'll also not have to pay utility bills for the house as well plus other miscelanious things with my mother moving in will end up saving me money in the long run.  I know I kind of went off topic with this part but multifamily property can be really useful if you take care of family members so even if renting it out doesn't work out it can still be very beneficial in the long run.

As far as F.I.R.E. goes I'm really just in the F.I. camp.  Not looking to stop working just want the ability tell people to **** off and walk off a job without a care in the world instead of having to put up with BS. 

I'm in the 40% savings rate category right now.  Within a year I should be in the 50% category.  This wasn't very hard because I'm naturally a very frugal person.  I bought my 2006 Chevy Colorado at the end of the model year and plan on keeping it until the car dies and it makes absolutely no sense to repair it.  I also have a 2012 GMC Sierra that was my father's that he left me when he died so I'm going to keep that truck around until it dies and makes no sense to repair as well.  After one or both of those cars go I'm going to buy something used and dependable and just drive that until it dies and just rince and repeat.  I like having a backup car and will always have one at this point but I'll never buy new again and will never pay a car payment again.    

Biggest issue with me going forward will be breaking into 60% and above savings rate while also putting money aside for some travelling.  I do want to start travelling here in the future and balancing that out with increasing my savings rate is going to be my biggest challenge.      

[Boragard]

I plan to be a member of the FIRE community by the time I'm 50.  I'm currently 35 and doing everything I possibly can to retire at 50 with more than $1M Net worth and it WILL happen!! 

[CBartowski]

Any FIRE movement/concept followers out there up to share their stories? I've been working towards that goal for a little while but can't technically have a 2nd job due to contractual obligations so have to get creative with RE income, etc.

Curious if anyone had insight, advice, stories, etc.

[CBartowski]

I have found myself quite motivated with the FIRE concept. Single guy in his 30s with a job that will have a pension and 401 and in the reserves which will hopefully have a pension and 401 with no debt hoping to make this into something. I need to get my spending under control (I eat out a lot),  build a little more capital for some RE income and get out of my lease when it ends to own something outright (it wont be an 8 year old honda, but maybe a 5 year old Toyota). I make an effort to buy generic if its the same product like most of them are, look for deals whenever possible and buy anything I need used that used (sans a few exceptions obviously). I firmly believe this is possible for many people who are truly committed. 

If I can get enough of a headstart, when I eventually find my "player 2" who is like minded we can just join and nail it even quicker. 

I commend couples who are on the same page with this and not only support each other but both work towards the same goal. Us millenials have a tough nut to crack looking at retirement and our "number" is huge to actually be prepared. 

Cheers, there is likely a decent amount of FIRE members on this site but who knows. 

[sccredit]

At this point mine will have to come from buying real estate because I am too comfortable to cut back lol. Reality is with one heading off to college in 18 months and another in 5 years I will have to focus on utilizing income to acquire assets vs savings. We plan on buying a home next year and will most likely look at adding a rental shortly after, preferably a multi family unit of some sort. After that one creates positive cash flow we'll add more. Eventually I'd like to create enough income that I can slow down what I am doing now, even with vacancies.