Some Millennials are Retiring Early – What are Their Secrets?

There’s a growing community of people who are strategically planning to retire much earlier than 65, 60, or even 50 years old.  These people are making radical changes to their lifestyles and financial plans. They are looking to achieve “financial independence” and to “retire early.”  Shortened to an acronym, that becomes F-I-R-E, and the FIRE movement is gaining popularity with millennials.

The basic goal of FIRE is to stash away a nest egg investment that provides enough interest income to support your new, pared down living expenses.

The driving force behind many people who are working toward (or have already achieved) FIRE is to have more control over their time, to cherish life experiences, and to not be tied to stressful jobs. For those that have achieved FIRE, many have seen improved health, mood, and relationships even while living on a smaller budget.

Some of the strategies people have used to achieve FIRE involve:

  • Curbing spending habits- less dining out, less beauty treatments, making coffee at home instead of buying each day
  • Living more frugally- moving to a smaller house, driving an older car, taking the bus, growing vegetables
  • Increasing the percentage of paycheck that is saved and invested
  • Investing with the guidance of professional financial consultants.

Some FIRE gurus recommend investing money instead of buying a house, while others recommend moving further away from your job to a more affordable community with a longer commute. There is a wealth of information about this topic, and once you learn the FIRE secrets, you might be hooked!

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Check out some of these FIRE Resources:

FIRE websites:

FIRE podcasts:

FIRE books:

  • “Early Retirement Extreme: A Philosophical and Practical Guide to Financial Independence” by Jacob Lund Fisker
  • “Meet the Frugalwoods: Achieving Financial Independence Through Simple Living” by Elizabeth Willard Thames
  • “The Simple Path to Wealth: Your road map to financial independence and a rich, free life” by J.L. Collins
  • “Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence” by Vicki Robin

More Information about Saving from our blog: