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What is the Fire movement?
Fire stands for financial independence, retire early. Fans of the Fire method or the Fire movement adopt extreme saving techniques in order to have financial freedom.
While early retirement is the goal for some Fire savers, for many it’s about having the choice to decide when they work. For some it’s as simple as being given the freedom to afford to work part time.
The Fire movement started in the US but has a growing fan base in the UK. Its main ideas originate from the 1992 book Your Money or Your Life by Vicki Robin and Joe Dominguez.
The aim is for you to retire before the age of 55 by:
Being frugal to set aside a big proportion of earnings
Generating an income in retirement through cheap, passive investments
The Fire movement appeals to those who:
Want to quit work
Are dissatisfied with consumerism
And want to gain financial independence
The Fire movement draw in new followers during the pandemic as people reassessed their lives during lockdown and started saving more of their income.
However, the cost of living crisis has turned this on its head. Many people are spending more on household bills than they were a year ago, leaving them with less disposable income to save and invest.
While this doesn’t make it impossible to retire early, it certainly makes it a lot harder.