Sep 06, 2021 12:04 PM EDT
Everything You Need to Know About the FIRE Movement!
You saw a few articles or postings on Reddit, and now you're asking yourself what the FIRE Movement really is, and how you can become a part of it? We will answer all the important questions around the FIRE Movement in this article!
The most important questions around the FIRE Movement:
It seems like the FIRE Movement just came out of nowhere and therefore many people have many questions around this new phenomenon. The truth is: The principle of FIRE has been around for a long time, but due to the lack of internet and investment opportunities, no one really knew about it. If you are interested in the FIRE Movement, but you have lots of questions around it, then this is the right article for you!
What is the FIRE Movement?
The FIRE Movement is a group of people who are interested in FIRE. No, we don't talk about the element fire, but rather FI (Financial Independence) and RE (Retiring early). Therefore, the goal for people in the FIRE Movement is to reach financial independence and retire early. But why do you need a movement for this? First, there are many tricks that you can use, for example get more out of your Roth IRA or your 401K. People are exchanging ideas and tips to reach their goals faster. But second of all it is also a place to communicate with like-minded people, keep the motivation up and even exchange tips on being frugal.
Is FIRE possible for everyone?
This is a tough question to answer! Since there are many people in the FIRE Movement with a high salary (usually from the tech industry), it seems like you have to have a good job to make FIRE happen. But the truth is: It is even more important how much you can invest each month, rather than having a high-paying job (even though this makes saving easier). There are many people with high salaries trying to FIRE, but their expenses are too high, so these people barely save any money.
How can you start investing in FIRE?
Investing and saving are the crucial parts of FIRE. How you can start your FIRE journey is something that we want to help you with these 3 tips and tricks!
Find the right Brokerage
One of the most important steps is to find the right brokerage for you. Since you will invest a lot of money, you want to be sure that it is a legit broker, who will cover all your needs. The best way to find out if a broker is good, is to check out the reviews. Learn from other customers and gather all the information that you need to decide. We highly recommend https://www.trusted-broker-reviews.com/ to find reviews of popular brokers.
You won't come closer to your FIRE goal without investing regularly! Have a look at your income and your expenses, and decide how much money you can invest each month. The more, the better!
Analyze the market
The best time to invest in the market is when it's low! If you see that certain stocks are low, then buy in now. But at the same time, don't overthink it too much. You will have your money in this brokerage for a long time anyway, so a small difference when you buy in, won't be a big deal years later.
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