Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
What it Takes to FIRE
Old 07-14-2008, 08:30 PM   #1
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 162
What it Takes to FIRE

Probably have seen lists like this before, but here's another and feel free to add to or disagree:

Decent income (but doesn't need to be outlandish)
Growing up in a middle class household, perhaps even where money was tight (not absolute but creates a mindset)
If married, spouse thinks similarly (and don't get divorced)
Certainly helps to have a pension
Willing to invest (stock market or real estate) but don't chase the latest sure thing of the moment
Be satisfied with life and not needing material things
Not caring what the neighbors are buying/doing
Enjoy saving/watching the nest egg grow
Stable lifestyle (no fancy cars or crashing cars or keep moving)
Spend what you need, not what you make
Can visualize what life would be like outside the 9 to 5 routine
__________________

__________________
firewhen is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-14-2008, 09:25 PM   #2
Recycles dryer sheets
 
Join Date: Jun 2008
Location: Los Angeles
Posts: 156
It's important to mention that the above list will provide a certain type of frugal retirement. Nothing wrong with it, but while many people are willing to live that way, many others would not.

To FIRE with a much better lifestyle, I would start the list with things like:

- earning much more money than the average America for many years,

- saving much more than the average American for many years, and

- waiting until you have much more investable assets than the average American.

When your annual expenses amount to 2-4% of your total investable assets, you're ready to FIRE. The exact number depends on whether you're going to retire in your 40s, 50s or 60s (if you can consider retiring in your 60s as ER at all).
__________________

__________________
CaseInPoint is offline   Reply With Quote
Old 07-14-2008, 11:09 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 2,020
What it takes to retire well:

Spend less than you net. Save the difference.

What it takes to FIRE:

The above plus a better percentage, a bull market, or time (start young). Having all three helps.

I think your list is good too ;-)
__________________
Marquette is offline   Reply With Quote
Old 07-14-2008, 11:31 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,403
Quote:
Originally Posted by firewhen View Post
Probably have seen lists like this before, but here's another and feel free to add to or disagree:

Decent income (but doesn't need to be outlandish)
Growing up in a middle class household, perhaps even where money was tight (not absolute but creates a mindset)
If married, spouse thinks similarly (and don't get divorced)
Certainly helps to have a pension
Willing to invest (stock market or real estate) but don't chase the latest sure thing of the moment
Be satisfied with life and not needing material things
Not caring what the neighbors are buying/doing
Enjoy saving/watching the nest egg grow
Stable lifestyle (no fancy cars or crashing cars or keep moving)
Spend what you need, not what you make
Can visualize what life would be like outside the 9 to 5 routine
The list fits me, except for the pension thing !

May I add "Be your own grease monkey"?

Just kidding.
__________________
NW-Bound is offline   Reply With Quote
Old 07-15-2008, 07:12 AM   #5
Full time employment: Posting here.
 
Join Date: Sep 2007
Posts: 514
I tend to think of there being 2 lists: one of mandatory factors that you must have in order to retire comfortably, and a second list of factors that all contribute to FIRE, but you don't necessarily need them all. The more factors from the second list that apply to you, the sooner you can FIRE (or the higher your standard of living if your FIRE date is fixed). For example, I think the following are the mandatory factors you need in order to ever retire at all:

  • Live below your means, save the difference, at least 10% of your net.


That's it. If you do that, you'll eventually be able to retire. It may not be glamorous, it may not be "early," but you'll eventually get there, even if you know nothing else about money and investing. The following list are all factors I think can accelerate your arrival:

  • Live in the smallest house you're comfortable in.
  • Don't have kids.
  • Don't get addicted to always driving brand new, fancy cars.
  • Develop a good knowledge of investing, understand why "fees matter."
  • Work at a job with a pension plan.


My wife and I are totally ignoring the first item, and we don't have any company pensions, but we've stuck to all the rest. If we downsized our home, we could certainly retire sooner and/or better, but this way, we get to live in a huge, nice house while we're waiting.
__________________
kombat is offline   Reply With Quote
Old 07-15-2008, 11:48 AM   #6
Recycles dryer sheets
 
Join Date: Jun 2008
Location: Los Angeles
Posts: 156
Quote:
Originally Posted by kombat View Post
I tend to think of there being 2 lists: one of mandatory factors that you must have in order to retire comfortably, and a second list of factors that all contribute to FIRE, but you don't necessarily need them all. The more factors from the second list that apply to you, the sooner you can FIRE (or the higher your standard of living if your FIRE date is fixed).
Right on, kombat.
__________________
CaseInPoint is offline   Reply With Quote
Old 07-15-2008, 11:55 AM   #7
Thinks s/he gets paid by the post
Finance Dave's Avatar
 
Join Date: Mar 2007
Posts: 1,046
Quote:
Originally Posted by firewhen View Post
Probably have seen lists like this before, but here's another and feel free to add to or disagree:

Decent income (but doesn't need to be outlandish)
Growing up in a middle class household, perhaps even where money was tight (not absolute but creates a mindset)
If married, spouse thinks similarly (and don't get divorced)
Certainly helps to have a pension
Willing to invest (stock market or real estate) but don't chase the latest sure thing of the moment
Be satisfied with life and not needing material things
Not caring what the neighbors are buying/doing
Enjoy saving/watching the nest egg grow
Stable lifestyle (no fancy cars or crashing cars or keep moving)
Spend what you need, not what you make
Can visualize what life would be like outside the 9 to 5 routine
I agree with all you've written...and here's a few more:
* Start saving for retirement early (I started at age 18)
* Do an "income needs" assessment (I've seen several studies that show those who have tried to see what it takes are more successful at meeting their goals)
* Protect yourself - this is a generic statement, and can include everything from having good insurance (umbrella policy for those with high net worth) to not doing drugs, watching your weight, managing diseases, and wearing your seatbelt.
__________________
Finance Dave is offline   Reply With Quote
Old 07-15-2008, 02:01 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,403
Quote:
Originally Posted by Finance Dave View Post
* Protect yourself - this is a generic statement, and can include everything from having good insurance (umbrella policy for those with high net worth) to not doing drugs, watching your weight, managing diseases, and wearing your seatbelt.
Yes, the umbrella policy. It costs me a few hundred bucks/year (my wife keeps track of that), and it frees my mind of some worries.
__________________
NW-Bound is offline   Reply With Quote
Old 07-15-2008, 02:11 PM   #9
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 2,402
It's obviously really a YMMV item, but receiving an inheritance or two doesn't hurt.

2Cor521
__________________

__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Three Takes on Whether $1 Million Is Enough to Retire sarahsays FIRE and Money 35 06-14-2008 06:23 AM
Retired by 50: What it really takes tryan Young Dreamers 13 09-25-2007 11:10 PM
It takes a village.... twaddle Life after FIRE 9 08-28-2007 11:19 AM
Ex-military takes on Dilbert REWahoo Other topics 6 09-08-2006 10:48 PM
Who takes statins? Which ones? BUM Other topics 51 06-04-2005 12:58 PM

 

 
All times are GMT -6. The time now is 02:53 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.