4 Mistakes in FIRE
FIRE stands for Financial Independence, Retire Early, meaning if you are an employee trying to achieve financial freedom before retiring. For this the workers are looking for ways to earn extra income so that they can save more and invest and eventually achieve financial freedom and retire early. Although there are many strategies that can be practiced to achieve FIRE, the workers often make some mistakes that they should avoid, including:
1. Have No Goals
Many retirees have achieved financial freedom but unfortunately they have no goals or what they will do to fill their spare time after retirement. So the need for retirees to make plans after retirement whether he will work online, garden, trade etc.
2. Not saving enough
There are so many workers who don't prepare for retirement so they don't have enough savings, let alone invest in stocks, bonds, deposits or cryptocurrencies. Most likely they are not disciplined in saving or may not understand how to calculate funds in order to reach FIRE. Recommendations from experts, is to apply the 4% rule; Example calculation: If your expenses are $1,000 per month then in a year it is $12,000. So the funds you have to prepare to reach FIRE are $12,000 X 25 = $300,000. If you have invested a minimum of $300,000 with a return of 4% then you will get a return of $12,000 per year or $1,000 per month.
3. Have different goals with your partner
Often there is a difference of opinion between husband and wife to use the savings money, even though the husband wants to invest but the wife often acts consumptively or prefers to buy things that do not make money. So FIRE will never be reached.
4. Spend the money that has been saved
After accumulating or saving money for years Often they get psychological barriers, such as building a more luxurious house even though the old building is still good and strong, or adding to a collection of luxury cars.
Here are 4 mistakes to avoid if you want to achieve financial freedom retire early. Even though you can reach FIRE, that doesn't mean you have to quit/resign your job if your retirement period is still long.
FIRE stands for Financial Independence, Retire Early, meaning if you are an employee trying to achieve financial freedom before retiring. For this the workers are looking for ways to earn extra income so that they can save more and invest and eventually achieve financial freedom and retire early. Although there are many strategies that can be practiced to achieve FIRE, the workers often make some mistakes that they should avoid, including:
1. Have No Goals
Many retirees have achieved financial freedom but unfortunately they have no goals or what they will do to fill their spare time after retirement. So the need for retirees to make plans after retirement whether he will work online, garden, trade etc.
2. Not saving enough
There are so many workers who don't prepare for retirement so they don't have enough savings, let alone invest in stocks, bonds, deposits or cryptocurrencies. Most likely they are not disciplined in saving or may not understand how to calculate funds in order to reach FIRE. Recommendations from experts, is to apply the 4% rule; Example calculation: If your expenses are $1,000 per month then in a year it is $12,000. So the funds you have to prepare to reach FIRE are $12,000 X 25 = $300,000. If you have invested a minimum of $300,000 with a return of 4% then you will get a return of $12,000 per year or $1,000 per month.
3. Have different goals with your partner
Often there is a difference of opinion between husband and wife to use the savings money, even though the husband wants to invest but the wife often acts consumptively or prefers to buy things that do not make money. So FIRE will never be reached.
4. Spend the money that has been saved
After accumulating or saving money for years Often they get psychological barriers, such as building a more luxurious house even though the old building is still good and strong, or adding to a collection of luxury cars.
Here are 4 mistakes to avoid if you want to achieve financial freedom retire early. Even though you can reach FIRE, that doesn't mean you have to quit/resign your job if your retirement period is still long.
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