Retirement feels like a very distant word, and many people think that it takes at least 60 to consider this matter. However, now more and more post-90s and post-85s have to greatly advance their retirement age. Some people even say that they will retire in their 30s and enjoy life. This trend has been rising all over the world, it is called FIRE, or you can call it “financial independence, early retirement campaign.”
So the question is, where do these young people get so much money? Can we be like them?
The Financial Independence, Retire Early (Fire) movement originated in the US, but has spread to the UK, attracting twenty- and thirtysomethings who do not intend to spend 40 years strapped to the corporate machine.
The Fire Movement (Financial Independence/Early Retirement Movement) originated in the United States and later spread to the United Kingdom, attracting many young people in their 20s and 30s. They don’t want to be tied to the company’s machinery and spend 40 years of their lives on work.
Instead, they are practising a combination of extreme saving and rigorous investing to try to build up the “stash” you need – commonly seen as 25 times your annual expenditure – to quit, or, as these millennials put it, to “get Fired” .
They accumulate the “small coffers” needed through extreme savings and strict investment-usually 25 times the annual expenditure. This way, you can give up your job or, as these millennials say, “be fired”.
Jordan Hall is 24 and a fully paid-up member of the movement, eagerly following blogs from the likes of Mr Money Mustache in the US and the Escape Artist in the UK.
Jordan Hall is 24 years old and a devout practitioner of this sport. He eagerly followed blogs such as Qianbeard in the US and escape artists in the UK.
He earns £50,000 a year as a commercial manager – well above the national median figure of less than £30,000 – and saves 50% of his salary.
As a financial manager, he earns 50,000 pounds a year, which is much higher than the average British income of less than 30,000 pounds. He will save half of his salary.
He moved to Manchester from London because the cost of living was cheaper, shares a rented flat in the city centre for less than £400 a month and cycles to work.
He moved from London to Manchester because of the lower cost of living there. He also shared an apartment in the city centre with others for less than £400 a month and rode to work.
He is putting his money into a lifetime Isa and “passive” tracker funds, which follow the stock market and charge low fees because they are not actively managed.
He puts the money in a lifelong personal deposit account and passively win wealth fund. These savings and funds follow the stock market and charge very low fees because they are not actively managed.
He intends to buy a property in Manchester, rent it out and perhaps work abroad.
He plans to buy a house in Manchester and rent it out, maybe he will work abroad.
“I enjoy my job for now, but things can change, and when I’m 30 or 35 I’d like to have the option of thinking:’Do you know what? Stuff it. I’m going to go and do something else.’ The goal is not retirement, but freedom to do whatever I want to do.”
“I like my current job, but this may change. By the time I am 30 or 35, I hope I have the opportunity to think like this:’You know what? Fuck him! I’m going to resign and do something else. “My goal is not to retire, but to be able to do what I want to do freely.”
After reading the good life of others, we have to ask: “When can I retire?!” My salary is not high, and the salary increase is not large. Where can I get the money to retire? ? ?
Don’t worry, let’s analyze the winner of life in the article just now. It is not difficult to see that he achieved financial freedom mainly on two points:
1. Deposit money strictly, monthly.
2. Use the saved money to invest.
Therefore, we might as well have a good dream, first of all we must determine two numbers:
X=The money you can save every month
Y = the rate of return on investment you can achieve each year
Let us first assume that we have just graduated from a bachelor degree and are 22 years old; then X=3000, Y=20%. In other words, you can save 3000 yuan through hard work every month, and the investment rate of return for a year is 20% (this is a very good rate of return)
So, how much money will you have in 10 years? Your funds Z after 10 years are as follows:
How much is this? ? ? This is 112,1415.06724, which is 1.12 million yuan. At this time, you already have 1.12 million yuan. You can get 224,000 yuan every year with only 20% of investment income, which is equivalent to a monthly salary of 18,000 yuan. Even if we assume that the annual inflation rate for the past 10 years is 4%, the monthly salary of 18,000 in these 10 years will be equivalent to the current 12,000. (This little white-collar worker thinks this is enough for my financial freedom)
And at this time you are only 32 years old, and you can retire at 32. It’s not too beautiful. (Of course, if your dream is to buy a house in the center of Shanghai, it’s a different story)
If your investment ability is stronger and can exceed 20%, or you can save more than 3,000 a month, then you can even reach more than 1 million in your 20s. But the biggest problem is here. 20% is already an upper-middle rate of return, and not everyone can do it. To reach 20%, or more than 20%, you need more professional and systematic investment knowledge.