Financial freedom and retiring early (Fire); and why people do not attain it
There is a word in the mouth of so many people and that word is FIRE (Financial Independence and Retire Early). This is one thing a lot of people plan for themselves, the ability to be financially free and retire early and the believe for this to come into existence is working tirelessly at a very early or young age and do not have to work very hard in their old age. This has worked for a lot of people and it has now become a thing of believe for every young person.
This act of working hard at an old age or even till the day of death isn’t a news to people in the labor force, as it is visible that for a person who’s being paid the minimum wage might not have the luxury of seating by the beach and enjoying their retirement but is it possible for everyone to enjoy a long lasting retirement with financial independence?
What is financial freedom? To a lot of people, this phrase has different meaning, but I will say what I believe to be financial freedom. Financial freedom is a period when the income from an investment is above the expense of the person. With this, it is possible that a lot of people have attained financial freedom without knowing that they have achieved it.
Why do a lot of people not attain financial freedom? To so many people, it is believed that income is the reason why they cannot attain financial freedom while some people say that attitude towards handling finance is what has made some people unable to attain financial freedom. What do you think is the real problem for people attaining financial freedom?
If we are looking at investing with interest of 8% - 10% and an inflation of 3%, can someone become financially free if their expenses are below their income? Does it matter if one is receiving salary and wages or if one is investing in stocks.