You might have heard of FIRE before – it’s a movement that has caught on with millennials who are more in touch with personal finance. FIRE is an acronym for Financial Independence, Retire Early and it is characterised by aggressive savings through decreasing expenses and/or increasing income. The savings are channeled towards investments to build passive income, making retirement much earlier than the typical retirement age possible.
The plan is to have return-generating assets 25 times of your annual expenses. That way, an investment with 4% pa returns provides enough interest to cover your living costs, making paid work optional. I’m a fan of the concept and and its philosophy, but here are a few reasons why I am not fully on FIRE yet. 1. I have a business As some of you may know, my income comes primarily from my business. While it’s...
