A Beginner's Guide to FIRE (Financial Independence Retire Early)

FIRE, or financial independence retire early, is a movement that believes the best thing money can buy is financial freedom. In this video we walk through everything you need to understand FIRE, how it works, and how you can begin your journey to financial independence.
0:00 What is the FIRE movement
1:29 FIRE myths
6:10 Origin of the FIRE movement
7:40 How to calculate financial independence
8:51 Does the 4% Rule apply to FIRE?
12:05 FIRE focuses on expenses, not income
14:23 FIRE math
17:04 Fire Calculator
20:33 The power of small changes
20:35 Types of FIRE & FIRE resources
Resources mentioned in this video:
✅ 4% Rule Series: • The 4% Rule Explained ...
✅ Origin of FIRE: www.mrmoneymustache.com/2012/...
✅ FIRE Grid: fourpillarfreedom.com/the-fin...
✅ FIRE Calculator: networthify.com/calculator/ea...
✅ FIRECalc: firecalc.com/
✅ FIRE subreddit: / fire
✅ LeanFIRE: / leanfire
✅ FatFIRE: / fatfire
✅ CoastFIRE: / coastfire
TOOLS & BOOKS I LOVE
✅ My Book (of course): amzn.to/3by10EE
✅ Personal Capital: go.robberger.com/empower/yt-
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
LET'S CONNECT
KZbin: / @rob_berger
Facebook: / financialfreedomguy
Twitter: / robert_a_berger
DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.

[@9rows]

5:38 God bless your mom. What a hero! Much respect to all the teachers out there.

[@minimalmiss]

I've been watching so many of your videos! I hope to keep watching, it's all very informative. Thank you!

[@stevenobrien595]

Fantastic information Rob. Between all your videos and now the book, I've learned so much and have been able to fine tune our investments! Keep up the great work. Thank you, Steven

[@russellpennington1319]

I have recently found your channel and I love your videos. The information and your point of view is fantastic. Thank you so much for what you do!

[@MountainManFred]

More great info! 4:31 is especially interesting.. Anyway, watching the whole 4% rule series. Great knowledge..thanks for doing these!

[@billflu]

I always have to laugh at the articles that ask if the FIRE movement is dead after a market downturn. The FIRE community is better equipped than most to weather the storm.

[@bikrampanda85]

One of the best video I have seen till date. It gives a brief concept and packed with tons of resources. Thanks for all the good work. I on boarded into FIRE starting of this year and is at 61% savings rate. Every month its getting better and better. This is due to work of all you guys which are spreading their knowledge in helping us. Thanks again.

[@bikrampanda85]

Also I would like you to make a video on Bill Bengen 4 percent rule original article and how its evolved now.

[@bradsilvester8506]

Man you are kicking out the vids...thanks

[@bridgecross]

I would also factor in the growth that comes from staying in the workplace. For most people that stick with their jobs (at least for careers that require college education) salary growth probably outstrips passive investments, and certainly all but the luckiest speculative investments. Unless your job is actually making you miserable, it's worth it. I just started the final 10 years of my working life before retirement, and I'm shocked at how much this final time is paying off.

[@rudged123]

Thanks for your video. You should consider doing a book review of J.L. Collins "The Simple Path to Wealth." He advocates investing 100% in stocks (specifically S&P index funds) until you retire.

[@scavazos3962]

Thank-you so much for your information.; I was precised, informative and with an informative tone. Would it be possible to do a review on Betterment? I am new to investing and I would like to know your opinion and analysis for Betterment.

[@MRobert1984]

What's your thoughts on the MarketWatch article where the creator of the 4% rule said it should now be the 5% rule and that the 4% is only if you retired in the worst possible time in history. I feel that the FIRE people work so hard and are so sharp with finance they will earn money in a fun side hustle during retirement and they will adjust their spending during market downturns.

[@kieranclyde4309]

you all prolly dont give a shit but does anyone know of a tool to get back into an instagram account..? I somehow forgot my login password. I would appreciate any tips you can offer me.

[@georgechiu3636]

It used to be a hot topic one or two years ago, but recently we don't hear FIRE much, especially when the market is down and we are in recession. As matter as fact, I start to see articles about some FIRE people who return to work again. While I am sympathetic to some FIRE people who quit their job because the working environment was so toxic, personally, I don't think FIRE is suitable to majority of people.

[@noodle3768]

Did the 4% rule consider social security? If I can live on my savings to 70. The social security can cover most of my expenses after that for ever.

[@DaystarHiker]

Calculator-Withdrawal rate. Why would one make withdrawals prior to retirement?

[@logs495]

Do you include company match on 401k in your income/savings rate?

[@rob_berger]

Yes, although you do have to consider whether it's 100% vested and if not, the odds of you staying at the company until it is.

[@asht9193]

What about other goals like child higher education

[@alexus-fu5ts]

The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?

[@trosien-nz3je]

In particular, amid inflation, investors should exercise caution when it comes to their exposure and new purchases. It is only feasible to get such high yields during a recession with the guidance of a qualified specialist or reliable counsel.

[@strayhorn-dc1bq]

True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.

[@posy-zj5qy]

This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?

[@strayhorn-dc1bq]

“Angela Lynn Schilling’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@posy-zj5qy]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@TheBenchPressBoss]

Hello, I'm a bit confused- so I'm 30- I'v got 1.4m and 300k debt- 15 year mortage monthly spend is 4k- Once mortgage drops off it be 2k- anyways 15k a year after mortgageis gone at 35x15- it be 600k- but with debt- i'm looking at 50kx35= 1,600,000- So paying off the house early i'd ahve plenty at 1.1m not paying off the house i'd be 200k short.

[@BestCBDCenter]

Yes