Lately this sub has had an almost daily influx of introductory questions such as "how do I do this?" 'how much do I need to save?" "where do I invest?" and so on and so forth. These are valid questions and if the FIRE idea is new to you it is not something that you are expected to know, but the FIRE blogosphere is a much better place for you to find succinct and relevant answers to FIRE basics.
There are two things that I believe one needs to bear in mind when it comes to FIRE:
- the path is well-trodden - answers to those questions are readily available and there is a basic consensus around it;
- you will need some initiative - you are swimming against the tide of consumerism and the glorification of work and status, so you need to read a bit to undestand what you are doing and to vaccinate yourself against loss of confidence.
If you put these 2 together, one of the conclusions can be that you have to do some leg work and research (don't worry, it is all well-mapped out there) and just asking here does not serve your best interests.
Like I said, there are tons of blogs out there, so my intent is not to say that people should stop asking the questions. Rather, it is to point "newbies" in a productive direction. If you can do some reading on your own, that initiative will serve you better than just getting an answer here.
How do I do this?
Save much more than you spend and put your money to work. Vicky Robin's "Your Money or Your Life" is both roadmap and inspiration. Don't want to buy the book? Here is a good discussion in a reputable blog by a guy who is a sensible writer:
https://www.physicianonfire.com/your-money-or-your-life-review/
The blog may appeal more to high earners. So you may ask:
How do I do this on an average to low salary?
Not to worry! Here is a good blog for that, albeit from a very unusual thinker:
http://lackingambition.com/?p=1321
There are others too. Poke around and you'll find them. There is a FIREe out there who writes a blog and does what you do.
But HOW MUCH do I need to save?
The mo' you save the mo' bettah. But if you need numbers, here they are:
https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
MMM is my favorite and I read all his posts from the beginning, but I recognize he may be an acquired taste. There are others out there too.
Where do I invest?
Not in your savings account - you are smarter than that. Not in bitcoin or individual stocks - you are not that smart.
https://jlcollinsnh.com/2012/05/09/stocks-part-v-keeping-it-simple-considerations-and-tools/
But what if the market tanks, and other unpleasant things happen?
Not to worry if you are just beginning since the real risk happens at the end of the process. If you really want to get into the nitty gritty, here is a good resource:
https://earlyretirementnow.com/2016/12/07/the-ultimate-guide-to-safe-withdrawal-rates-part-1-intro/
Since this is Reddit, if WWIII breaks out we are ALL screwed and early retirement will be the least of our worries, so it does not pay to worry about that.
TL;DR
If you are a tl;dr person, you'll probably fail at this and most things. Find a FIRE blog you like and read it (the above is a sample of what I found to be good writing and your own favorites may be different). If an idea strikes you as interesting or crazy, follow that thread into other writers to see if they confirm it with better arguments.
I hope this post helps those of you who are new to the concept get started on some of your research.
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