Financial independence retire early is a growing concept that I want to make sure that you are aware of now
Don't worry, if you're turning your head, like what the hell is he talking about?
Because I didn't know much about it at first either if you were in the process of paying off debt
Then don't dismiss taking this time to learn about this right now because once you get your debts paid off
This could be the natural transition for you in this video
I wanted to gather as much of the basic
Information as I could about the topic of fire so that I could save you some time looking around everywhere
For what? You actually need to know to understand the basics as you watch this video
Let me know in the comments below if this sounds like something that you may want to
Eventually pursue then. Let me know why or why not I'm very curious financial independence retire early is also referred to as
Fi re fire
So why do I think this concept of fire is only going to get bigger as time goes on as more and more younger
Generations realize that we were sold this shitty bill of goods
When it comes to going to college to climb that corporate ladder only to waste our lives away doing
Meaningless shit in a cubical for 10 to 20 vacation days a year
The idea of fire will become something a lot more people like you and I will look at as a real option going forward
Financial independence and early retirement have everything to do with first getting out of debt
And yes
that means your student loans that car payment and
Possibly the house that you own that might be a little bit bigger than you actually need the reason is because this concept doesn't work
very well if you're aggressively trying to save and invest on one end of the spectrum while you're also
hemorrhaging money so the interest that you're paying on the other end like your but once again for that reason
This would be the natural transition for you. Once you become debt free. So pay attention
Let's start out with the most important part fire is the acronym of two concepts
The first one the FI is financial independence the second two letters
Are e is retire early or early retirement?
I like early retirement better. I think they probably should have just stuck with f IE r because it looks cooler, but whatever
I don't make the rules one thing to know don't go googling fire because unfortunately
Actual fire is way more popular research result
I'll have to admit that once you get really deep into the fire world
Some people take it really really
Personally when it comes to the difference between financial independence and early retirement as long as you understand the overarching
Concept then you'll be fine, and you'll understand
What it's about from what I've gathered some people switch back and forth between being financially independent and being in early retirement
You'll see once we dig deeper into the meaning of both of them. So hang on for a minute
So what is early retirement?
Well, basically if you were in an early retirement, you are considered to not be working or not working for money
It's just like if you were retired at 70 years old
but at a younger age
someone who is an early retirement has enough money to live off of every single year and
Sustain a particular lifestyle that they've saved up for and invested for now
I would consider someone in the early retirement who is taking an extended period of time
To travel or someone who is enjoying playing horseshoes with their friends on a regular basis if that's even still a thing
Volunteer work is another one or even someone who is enjoying their time working on a hobby that they enjoy so then what's financial independence?
To be financially independent might be seen as the ultimate goal think think of it like someone that has a few money
that is still working and
Making money a few money doesn't necessarily mean that they have to have tens of millions of dollars
it has to do with having enough money between investments and savings just to say sustain the
The lifestyle that they choose the basics around financial independence has to do with having the option to choose
Whether you want to work for money or not, for example, you may have enough money to retire early
But you decide to continue to work your current job
making money because you would just enjoy the work someone else who is also
financially independent is someone who has enough money to retire now but chooses to switch careers to work a lower pay job because that hits
Them right in the fields by working at that job now
Let's go into switching back and forth from financial independence and early retirement
The reason they refer to it as fire is because some of the people will move back and forth between both terms
financial independence and early retirement
You may be financially independent and still work at your but then decide that you were kind of over it
So you want to retire early to do some traveling in Southeast Asia?
And then while you're traveling emid, you may have discovered something new that you're passionate about. You're like, oh, I love this new thing
So you want to share it with the rest of the world? So what do you do?
You create some sort of product or service to sell at that point
You're moving from being retired to financially independent because you are back to making money
So why would you want to be financially independent or retire early when the average person thinks about retirement?
We think about working into will we're seventy years old
collecting Social Security having enough money to enjoy the last few years of our lives not working and
Banking on the fact that our bodies and minds are still functioning enough to actually enjoy that time fire is the same idea
Except speeding up the process so that you can do more enjoyable things for a longer period of time at a younger age
What have really gathered from this is that being financially independent is about doing things that give you more energy in life as opposed to
Doing work
that sucks all of that energy out of you to really grasp the
understanding think about those days that you leave work and you were absolutely
drained
Physically and mentally so much that all you want to do is just lay around and veg out and not do anything else
I know you've had these days I've had these days in the past too
Some of us may have a lot more than others. Which kind of sucks
I might be one of you were eight nine ten
Eleven hours at your full-time job only to be forced to spend the hours and days that you are
Working just to recover from those hours spent working
Your full-time job doesn't only take away from your time while you were there
It takes away from your time while you're away as well
How messed up is that for example?
let's do some math now be prepared to pick your jaw up off the floor after you see these numbers if you make
$30 per hour for eight hours of work then you make
$240 per day agreed hashtag math
but not if you account for everything else that goes into
You getting to and from work you getting ready for work and the time that you spend recovering from those draining days of?
Work so that's eight hours of work
One hour for one one hour of travel time one hour to get ready and we'll just call it three hours per day to mentally
Recovery if you're even able to do that in three hours
Which most people want don't?
throw up yet, because I'm gonna go over some more numbers if we take those hours into account and you're actually only making
$17 per hour and if you work more than in those eight hours
Then you were actually making less than that per hour
You would actually be making less than $17 per hour
If your particular situation calls for more time to be spent on things that have to do with your job
Oh, yeah
And this isn't even counting your recovery time on the weekends or any other things that have to do with your particular situation
That I haven't named listen. I don't want everything we talked about to discourage you
Please don't walk into your job and demand more money right away or just quit
That would be bad for everyone and I do not want to take ownership of that let this concept of financial independence and early
Retirement sink sink in for a little bit for yourself
Think about it on your own talk about it with your significant other or your wife or husband
It doesn't make sense for everyone
it really doesn't I know a lot of people who are who really enjoy that the work enjoy the work that they do and
They have no desire to ever pursue a life of fire
And that is okay pursuing this future takes a lot of questioning and second-guessing of your actions in the present
It's not easy to do the things to become financially independent and retire early
If you are not going to be all-in, I truly believe that anyone on any income can do it
But you first have to start with paying off all of your bad debts and becoming debt free keep that in mind
Let me know in the comments down below if you liked this video and want me to make more videos on this topic
make sure to smash that thumbs up button and pick up your free copy of the debt-free prep work but link is down in the
description or some work around my stupid head
I'd love to have you as a subscriber as well so we can start getting you to the point where you are financially free
Thank you so much for watching. I shall smell you later friends
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