Is your goal to achieve FIRE (financial independence, retire early)? Not sure where to start? Then it’s time to create a realistic early retirement plan for yourself.
Start with a FIRE Plan.
A FIRE plan is a financial blueprint for you to reach financial freedom. It’s not the same financial plan you receive from a certified financial planner that includes insurance, tax and cash flow advice.
This plan is solely focused on how you can realistically achieve FIRE based on your needs and current financial situation. A FIRE Plan is roadmap for your journey to financial freedom.
What exactly does FIRE mean?
There are so many definitions of what it means to be financially independent. There are also a number of ways to interpret early retirement too!
Here’s what we mean when we refer to FIRE. Financial independence is accumulating enough assets that work becomes optional.
Does a FIRE Plan work?
Scratching the walls to quit your 9-5 job? Feeling stuck but unsure what your next career path should be?
No worries, I’ve been there. There is a way out! A FIRE Plan helps you focus on the light at the end of the tunnel.
Hustle and remain flexible!
A FIRE plan needs to be realistically achievable. It is a clear roadmap to FIRE that motivates you to hustle and adjust along the way.
It wasn’t until I created my own FIRE Plan that I started moving forward on my FIRE journey. With a financial blueprint, I was able to get my financial ducks in a row.
And yes, even with my history of quitting jobs without a Plan B, I was able to quit AFTER I reached FIRE. There was much more peace of mind the final time around!
Here’s how to create a realistic FIRE Plan...
1. Determine your realistic FIRE number with a FIRE Calculator.
There are a number of different early retirement calculators out there. After much research, I found that Personal Capital offers one of the most in-depth retirement planning calculators.
And it’s free to use! Be sure to play around with different numbers to determine what is realistically achievable for you.
2. Track your net worth routinely using a free money app.
Reaching FIRE doesn’t happen overnight. Being consistent with discipline is what it takes.
I track my financial accounts on my phone to get a complete picture of my net worth with an easy-to-use Personal Capital app.
Over time, I saw how my net worth was trending positively. It even helped me take steps to make adjustments in my spending and savings habits.
3. Hustle and FIRE like a boss!
Keep your savings and investment strategies for your FIRE Plan simple. There are a gazillion ways to save and invest. From index funds to rental properties, the possibilities are endless!
But you don’t have to do it all.
Pick one or two methods that excites you. Since everyone has their own preferences when it comes to saving and investing, we offer a bunch of our preferred strategies here!
What about all the unknowns in life?
Glad you asked! Life has a way to throwing curveballs left and right. Whether it’s an unforeseen medical emergency or unexpected inheritance, the list of unknowns can go on.
That’s why we emphasize that flexibility is the key to success. When it comes to FIRE, adjusting to life changes is a must.
This is why a realistic FIRE plan is merely a blueprint for you to work off of. It’s not guidance set in stone.
There are a ton of personal finance tools online to help you stay on track when the unexpected happens. The FIRE plan give you flexibility to use your judgment to adjust along the way.
Ready to get FIRE’d up?
Check out the free FIRE Calculator here!
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