Financial independent, retiring early or FIRE as it is called for short, is a concept we have met over and over since we started this blog and began to read other blogs about personal finance. The concept is fairly simple – keep your expenses low and invest what you have left each month. Based on the articles we have read so far a rule of thumb is that you should save/invest at least 40% of your income every month. By living this way you will be able to live by passive income later in life and be able to retire early(ier). This is where we got very excited! Who wouldn’t love to be financially independent?
So do we then live by these “rules”? Yes and no…
Yes, we do actually save around 40-50% of our income in regular month and in fact we did this even before we heard about FIRE, so maybe we have just found a concept that explains how we live rather than how we should live.
No, because we are not fanatic about FIRE and do spend a lot of money traveling each year. Not traveling is the easiest way to save money, but considering the happiness and joy that follows we prioritize this post in the budget. In return we keep our everyday expenses low and often choose the cheaper alternative when possible.
As you can tell FIRE isn’t that far from how we already live today and as we both consider investing a hobby it is actually really fun to save up money for investing every month!