SHELLY REDDY

LIVING LIFE – MY WAY

What Is FAT F.I.R.E And It’s Pros And Cons

First of all, what is F.I.R.E? F.I.R.E stands for Financial Independence Retire Early.

FIRE may be achieved with any level of income doesn’t matter whether you fall in the low or high income bracket.

It all depends on an individual how much they want to retire on. Most people usually aim to retire early with low income (lean F.I.R.E) by means of frugal living. Which means that you have to be very careful where and how you spend your money.

So what is FAT F.I.R.E?

Fat F.I.R.E is for all those who intend to be financially independent without foregoing luxury living. Instead of retiring on $20,000 per year, people pursuing Fat F.I.R.E aim to live on say $100,000 per year so that they can maintain the standard of living and also have that safety net even if they don’t end up spending the entire sum within that year.

The Pros and Cons of FAT F.I.R.E?

Cons:

  1. It may take longer to reach Fat F.I.R.E due to the large sum required.
  2. Difficult to reach FAT F.I.R.E on low income therefore multiple sources of income is required.

Pros:

  1. No frugal living required and there will be enough for unforeseen expenses.
  2. You will not have to forego your standard of living even after you retire.
  3. Be able to do the things you want and love.

How To Achieve FAT F.I.R.E?

To achieve Fat F.I.R.E you will need to do the following:

  • Reduce Your Expenses – Find all means possible to reduce your expenses.
  • Increase Your Savings Rate – The more you are able to save the faster you will be able to reach F.I.R.E.
  • Do Not Quit Your 9-5 Job – Maintain that steady income to cover for you daily expenses and saving as much as you can.
  • Invest In Income Generating Assets – Assets such as real estate, stocks and bonds will help you fast track your Fat F.I.R.E journey
  • Have Multiple Streams Of Income – Find means to earn passive income. Every dollar earned from all sources of income will bring your Fat F.I.R.E date closer. Starting a business is the fastest way to achieve Fat F.I.R.E and if you would like to know how you can start your very own Digital Business visit my website here.

I personally am aiming for Fat F.I.R.E as I love to travel the world. Doesn’t matter which F.I.R.E journey you choose the main aim is to have a plan and get started.

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