Thread by @ithoughtplan

Almost every millennial aspires to retire early. But most of the time, this goal seems almost impossible to achieve.

Well, let us tell you... it's NOT impossible! Welcome to the world of FIRE! (1/n)

#financialplanning #financialgoals #retireearly #thread

So, what is FIRE?

FIRE stands for Financial Independence Retire Early and it's all about achieving financial freedom so that you can retire early and live life on your own terms. (2/n)

#financialindependence #financialfreedom #retirementplanning

Can you achieve FIRE in India?

Yes, you can!

Firstly, you need to focus on your Savings Rate (SR). This means cutting back on unnecessary expenses and living below your means.

A high SR is key to achieving financial independence. (3/n)

#saving #investing #FinancialFreedom

Next, you'll want to invest your savings in a way that maximises returns and minimises risk.

It often involves diversifying your investments across different asset classes, such as stocks, bonds etc. (4/n)

#investing #equity #debtinvesting #gold #bonds

Generating passive income is also crucial to achieving FIRE.

This can come from a variety of sources, such as rental properties, dividend-paying stocks, or a well-designed investment portfolio. (5/n)

#portfolio #dividend #realestate

Finally, achieving FIRE requires discipline, patience, and a long-term perspective.

It's not a get-rich-quick scheme, but rather a deliberate, intentional approach to financial planning that can lead to a more fulfilling and satisfying life. (6/n)

#financialplanning

One popular way of achieving FIRE is through the 4% rule.

This rule states that if you save and invest enough to accumulate 25 times your annual expenses, you can safely withdraw 4% of your savings each year in retirement without running out of money. (7/n)

#retirementplanning

Of course, there are risks and challenges involved in pursuing FIRE. Inflation, market volatility, and unexpected expenses can all impact your plans.

It's important to have a backup plan and be prepared for any contingencies. (8/n)

#inflation #interestrates #volatility

But despite the challenges, many Indians are embracing the FIRE lifestyle and achieving financial independence.

With discipline, patience, and a long-term mindset, you too can join the ranks of early retirees and live the life you've always dreamed of. (9/n)

#retirement

Lessons from the FIRE movement:

1. Start financial planning for early retirement. When your target is clear, it is easier to achieve it.
2. Control your expenses.
3. Find additional sources of income.
4. Make saving and investing a habit. (10/n)

#financialplanning #savings

So, what are you waiting for?

Start saving, start investing, and start working towards your financial independence today! (11/n)

#financialplanning #financialindependence #financialgoals #financialfreedom

If you find this thread useful, retweet it and help us reach more people like you. (12/n)

#financialplanning #financialfreedom #financialgoals #investing #savings #personalfinance