Latest news with #FIRE
Forbes
a day ago
- Business
- Forbes
Burn Bright, Retire Early: The Elegance And Essence Of The FIRE Movement
Mr. Pankaj Vasani, Group CFO at Cube Highways InvIT, has been in leadership roles at Publicis Groupe, Vodafone, Coca-Cola and Subros. In a world hypnotized by the cadence of perpetual productivity, a quiet revolution smolders—rising not in smoke, but in spark. It is the FIRE movement: 'financial independence, retire early.' What began as a whisper in frugal forums and minimalist blogs has roared into the consciousness of a generation seeking not just wealth but sovereignty over time. To those bound by the tyranny of the calendar and the cold tick of the corporate clock, FIRE offers a tantalizing rebellion—a life where one earns not to consume but to be free. The Philosophy Behind The Flame FIRE is not, contrary to misinformed jest, about retiring to a hammock at 40 with nothing but a coconut and a calculator. It is the artful pursuit of financial independence through aggressive saving, intelligent investing and radical intention—you may keep working, but not for the sake of money. It is rooted in the profound understanding that time, not money, is life's most exquisite currency. At its core, FIRE asks a question that capitalism rarely encourages: What is enough? And when that elusive threshold is identified—by personal values, not societal standards—life changes course. It's been said that 'risk is what's left over when you think you've thought of everything.' FIRE practitioners embrace this not with recklessness but with resolve. Origins Of The Blaze The modern contours of FIRE can be traced to Vicki Robin and Joe Dominguez's seminal work Your Money or Your Life, which proposes that every dollar exchanged is a slice of your life energy. That philosophy would later be echoed by bloggers like Mr. Money Mustache, who eschewed consumerism for purpose, framing frugality not as deprivation but liberation. Once niche, the FIRE movement now features in mainstream media, including the New York Times (registration required), and has found curious minds in boardrooms, business schools and even remote classrooms across the globe. A Personal Spark I vividly recall a moment in my mid-20s when I was working in middle management. I had just received a modest bonus—cause for celebration, surely—but as I sat in traffic for two hours returning from a meeting, I felt an unexpected hollowness. The thrill of income had waned; the hunger for autonomy had begun. A week later, I discovered a subreddit thread on FIRE. It wasn't the numbers that captivated me; it was the intention behind them. The idea that money could serve me, not the other way around, cracked open a new worldview. I didn't need to chase a promotion to feel secure. I needed a plan to buy my freedom. The Method Of Minimalism At its essence, FIRE demands a high savings rate—often 50% or more of income—combined with prudent investments, typically in multiple avenues. The goal? Accumulate 25 to 30 times your annual expenses, allowing a safe withdrawal rate of 3% to 4% per year. There are variations: Lean FIRE is for those content with a spartan lifestyle. Fat FIRE is for those desiring creature comforts. Barista FIRE is where individuals semi-retire, working part time to supplement their income. However, the strategy, although financially driven, is spiritually oriented in its outcome. But FIRE is more than math—it's mindset. I once read in a FIRE community thread, 'If you weren't being paid, would you still go to work? Then why are you working to earn money you'll never spend?' That's the heart of it—not retiring from work, but retiring from the compulsion to work. The Critics And The Clarion Call Of course, there are skeptics. Critics argue that FIRE is a fantasy for the privileged—those who are 'dual income, no kids' (DINKS), for example, or tech bros with seven-figure salaries and no dependents. And indeed, context matters. But so does creativity. FIRE is less about income level and more about gap management—the distance between what you earn and what you spend. A schoolteacher in Kolkata, saving diligently and living modestly, can inch toward independence just as surely as a coder in California. There are also risks, including market volatility, inflation and rising healthcare costs. Yet FIRE devotees counter with flexibility, part-time income and geographic arbitrage. As the movement matures, it is becoming more nuanced, more inclusive and more resilient. Wisdom From The Firestarters In a recent conversation with a couple who had retired early in their 40s, I asked what they found most surprising about their decision to retire. 'It wasn't about never working again,' they said, smiling. 'It was about working on what mattered. We write, work out, go for long walks, teach, volunteer, sit on various boards—things we never had time for. FIRE gave us space.' Another said, 'I used to buy gadgets every month. Now I buy days. Days of peace, of unhurried coffee, of reading under banyan trees. That's real wealth.' These are not just anecdotes—they are aspirations made manifest. Asia's Awakening To FIRE Some younger Asians, weary of long workweeks and legacy burdens, are opting for financial independence over familial obligations. There is poetry in this: In a land once defined by arranged futures, young professionals are arranging their own. The Soul Of The Movement Ultimately, FIRE is not about money. It is about meaning. It is about reclaiming the hours of your life and choosing how to spend them, not in reaction but in rhythm with your purpose. As I write this on a Sunday, I sit not in an office tower but on a sun-drenched terrace, my laptop and life open to me. I still work—intensely, joyfully and with everyday zest—but I do so with choice, not compulsion. That, to me, is FIRE's greatest gift: not early retirement, but early alignment. In a world where hustle is a badge and burnout a norm, the FIRE movement dares to ask: What if you could opt out? What if you could build a life not around working harder but living wiser? To that, I say: Let it burn. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
New Indian Express
a day ago
- Entertainment
- New Indian Express
Karnataka Women's Commission takes suo motu note of online abuse against Ramya, directs police action
BENGALURU: Taking up a suo motu case in connection with the abusive messages allegedly sent by actor Darshan's fans to actress Ramya, the Karnataka State Commission for Women (KSCW) on Monday wrote to Bengaluru City Police Commissioner Seemant Kumar Singh, directing him to take action against those posting derogatory messages against the former MP. KSCW Chairperson Dr Nagalakshmi Choudhary urged the commissioner to get all abusive content directed at Ramya removed from social media. 'The commission has taken up a suo motu case. Stringent action will be taken against those posting derogatory messages about women on social media... such miscreants can be imprisoned for three to seven years... Darshan's fans are making dirty comments and a person identified as Somu Nayaka even filed a complaint with the commission, but we have not registered the case because Ramya is a celebrity. The jurisdictional police and CEN police have been instructed to look into the matter,' she told media. Meanwhile, Film Industry for Rights and Equality (FIRE) has extended support to Ramya by writing to Home Minister G Parameshwara, demanding action against the vulgar social media abuse. 'FIRE stands in solidarity with actor Ramya in her fight against the misogynistic and obscene trolling on social media. Freedom of expression and the press, as enshrined in Article 19 of the Indian Constitution, is the cornerstone of our democracy. While healthy debate and differing opinions are vital in a democratic society, such discourse must be conducted with civility and respect,' the letter stated. 'The targeted, hateful online harassment of Ramya is a direct violation of these democratic principles and reflects a disturbing pattern of online misogyny... FIRE strongly urges the Karnataka Home ministry and cybercrime authorities to take immediate and appropriate action,' the forum demanded. Several actors have also come out in support of Ramya. Actor Pratham alleged he was threatened at knife-point by Darshan's fans near a temple in Doddaballapura recently, and he informed the Bengaluru Rural SP. 'I saw Rakshak Bullet (Kannada Bigg Boss contestant) and went to greet him. Miscreants sitting near Rakshak started abusing me for talking about Darshan. They pulled out a knife and tried to stab me. I respect Darshan. I want him to advise his fans to stop targeting upcoming actors. Those who handle his fan pages should be dealt with by police,' he added.
Hindustan Times
a day ago
- Politics
- Hindustan Times
Actor Ramya lodges complaint after ‘threats' from Darshan fans
Former Lok Sabha MP and actor Ramya on Monday filed a formal complaint with the Bengaluru city police commissioner, alleging that she was subjected to threats and vulgar abuse by fans of actor Darshan on social media. The complaint includes screenshots of the offensive messages and urges the police to take stringent legal action. Previously, Ramya publicly stated that Renukaswamy, who was murdered in a case allegedly involving Darshan, 'will get justice,' and vowed to file a complaint against Darshan's fans for sending her obscene and abusive messages online. (File photo) This comes after Ramya publicly stated that Renukaswamy, who was murdered in a case allegedly involving Darshan, 'will get justice,' and vowed to file a complaint against Darshan's fans for sending her obscene and abusive messages online. 'This is not just about me. I was told I should have been murdered. I received rape threats, vulgar and deeply disturbing messages. That's when I realised someone had to act,' Ramya told reporters after filing the complaint. 'It shows just how degraded parts of our society have become.' Referring to the Dharmasthala case, she said: 'We're talking about the bodies of 500 women and young girls buried in Dharmasthala. That mindset is what fuels such horrors. If we stay silent, the harassment, rape, and murder of women will only continue.' Ramya stated that she has reported 43 accounts — 'only the most obscene' — and expressed gratitude to those who supported her unprompted. 'But from the film industry? No one reached out.' Ramya also alleged that the issue is not new. 'Two years ago, I flagged vile messages from a popular actor's fans — not targeting me, but his wife and family. Even dead children were being targeted. I spoke up then too but again, there was silence. No condemnation, no accountability,' she said. The complaint has triggered strong reactions from both the political and institutional spheres. Home minister G Parameshwara said the police would act decisively. 'If actor Ramya files a complaint, the police will take legal action. In some cases, even if there's no formal complaint, we act on our own if necessary. The police will investigate this seriously,' he said. In response to the allegations, Women's commission chairperson Nagalakshmi Choudhary also expressed concern and called for immediate legal steps. 'Derogatory messages being circulated on social media are damaging the dignity of women,' she said. In her letter to the city police commissioner, she wrote, 'These vulgar messages must be stopped immediately, and those responsible should face strict legal consequences.' The Film Industry for Rights and Equality (FIRE), a collective advocating for a safer work environment in the Kannada film industry, has also intervened. In a formal letter addressed to the state home minister, FIRE condemned the abuse as 'vile and deeply offensive.' The letter said: 'The online abuse and hateful content aimed at Ramya is a direct affront to the core values of our democracy.' FIRE cited relevant provisions under the Indian Penal Code — Sections 499, 500, 505(2), and 509 — and the Information Technology Act, urging cybercrime authorities to act swiftly. 'Failure to curb such behaviour sends a dangerous message and normalises gender-based hate in digital spaces,' the group noted. Meanwhile, the row has escalated further as Darshan's wife, Vijayalakshmi Darshan, announced that she would be filing a counter-complaint against Ramya. In a statement to the media, Vijayalakshmi accused Ramya of making prejudicial comments while the murder case against Darshan remains sub judice. 'The case has not yet been settled in the court. They are already calling Darshan guilty. It is not right for Ramya to comment on a case that is in the court,' she said, confirming that she would approach the Cyber Crime Police.
Forbes
a day ago
- Forbes
Cop Who Tried To Run Over Protestor Faces First Amendment Lawsuit
A protester has filed a First Amendment lawsuit against police officers in Allentown, Pennsylvania, after they repeatedly attempted to intimidate him, including driving a car down a public sidewalk. To vindicate his right to film police officers, Phil Rishel has partnered with the Foundation for Individual Rights and Expression (FIRE) and sued the officers in federal court last week. 'The retaliation over my speech confirms that there is a huge issue with the culture of the Allentown Police Department,' Phil said in a press release. 'These officers have a disdain for the rights of the people they're sworn to protect — and I hope my lawsuit changes things for the better.' Phil Rishel has filed a First Amendment lawsuit against police officers in Allentown, Pennsylvania. On March 26, 2024, Phil was filming outside of a police parking garage in Allentown on a public sidewalk. Noticing Phil, Officer Dean Flyte pointed towards a 'No Trespassing' sign, before heading back inside. 'Yeah, that's a nice sign. Too bad it doesn't apply to the public sidewalk,' Phil quipped. Moments later, Flyte reappeared, this time in his police cruiser, and tried to exit the garage. But the officer botched the turn and instead hit the garage's sidewall. Phil laughed and mocked Flyte for his driving. Undeterred, Flyte activated his lights and siren and started to slowly drive down the sidewalk towards Phil. Phil fled. He found cover behind a concrete planter on the sidewalk. Flyte left the car and once again went back inside the garage, before re-emerging with a supervisor, Sgt. Christopher Stephenson. Sgt. Stephenson ordered Phil and threatened to arrest him if he walked down a public sidewalk. So Phil decided to leave for the day. The very next day, Phil returned to the same police parking garage to continue filming outside. This time, according to FIRE's lawsuit, Sgt. Joseph Iannetta 'berated and tried to intimidate' Phil and outright told him, 'You need to be institutionalized.' Soon after Phil's interaction with Iannetta, Sgt. Stephenson appeared and threatened to cite Phil because he was filming police officers. Phil also filmed the sergeant who claimed, on camera, that 'one person is not a protest' and 'filming is not a First Amendment right.' (He's wrong on both counts.) Stephenson charged Phil with both loitering and disorderly conduct for 'verbally abusing, harassing, and screaming obscenities on the public street.' But in June 2024, the Lehigh County Magisterial District Court dismissed the charges of disorderly conduct, correctly noting that swearing or giving the middle finger are constitutionally protected under the First Amendment. The court did find Phil was guilty of loitering, but even this charge was later overturned on appeal. Prior to filing his lawsuit with FIRE, Phil shared his footage documenting his experience with the Allentown officers with Lackluster Media. The video went viral in February, earning more than 1 million views. What happened to Phil is part of a much larger pattern. In its complaint, FIRE details multiple cases where Allentown police officers were caught on film 'violating citizens' constitutional rights,' with cell phone cameras 'providing an important check against police brutality and misconduct.' Over the past decade, the city has paid out more than $2 million to victims of police misconduct. Accordingly, Phil and FIRE are also suing the City of Allentown for its alleged 'deliberate indifference' in failing to properly train and educate its police officers about respecting the First Amendment. 'Citizens trying to hold police officers accountable should not be punished,' said FIRE Attorney Zach Silver. 'Public officials, including police officers, must uphold the law and respect citizens' right to record police and to use harsh language, not bully them into silence.'
Scottish Sun
4 days ago
- Business
- Scottish Sun
How YOU could retire at 35 with £1million in the bank using the FIRE method – & why the number 25 is key
Alan and Katie retired decades earlier and now travel the world - all by following a seven-step plan CASH TO BURN How YOU could retire at 35 with £1million in the bank using the FIRE method – & why the number 25 is key Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) IT'S everyone's dream to retire early and travel the world, but it seems impossible to achieve. Meet the FIRE savers and top finance experts who explain how YOU could retire decades earlier, by following a seven-step plan - and why the number 25 is key. 3 The Donegans piled their savings into the stock market to retire in their 30s and 40s - and they say you can do it too 3 The key to achieving FIRE is to invest in the stock market - we explain exactly how to do it below Credit: Getty The FIRE savings method stands for "Financial Independence Retire Early". Put simply, it means drastically cutting back your spending and ploughing your savings into the stock market. The aim is to start saving as aggressively as you can, as soon as you can, so you can retire as early as possible and long before the age at which you can start claiming your state pension. The method can be traced back to America in the early 90s and provides a blueprint as to how you can save like crazy in order to retire in your 40s or 50s - or even your 30s. It's sparked a huge number of followers willing to live on a shoestring to achieve this retirement dream - #retireearly has 413k posts on Instagram, while #FIREmovement has 174k posts. But the FIRE dream is controversial, as it relies on your investments going up - and that could be a risky strategy, as they could just as easily go down. It also goes against a lot of traditional money advice, so make sure you really consider your options before embarking on it. But for one couple, Katie and Alan, the method has allowed them to give up work at the age of 35 and 40, and they now travel the world jetting off across Asia, America and Mexico. Kate says: "People just assume retirement is an age, but it's actually a monetary target." However, the FIRE dream has become even trickier to achieve due to rising inflation and high interest rates, with the price of everyday goods soaring and borrowing being more expensive. But it's still possible - and we explain how you can do it. What is FIRE - and why the number 25 is key The idea behind FIRE is that you save and invest a high proportion of your earnings at a young age into the stock market. You also need to pay off all your debt, including your mortgage, as soon as you can. There's a critical number you'll need to remember when saving - which is the number 25. This is because you should aim to save around 25 times your annual spending (which is your outgoings, living costs, bills, and disposable cash). When you hit the target, FIRE savers say you will have enough to live off and quit your job. FIRE rules state that you need to stash away 50 per cent of your income every month in order to hit that 25 target as quickly as possible. Investment platform Hargreaves Lansdown has crunched the numbers on how much you need to save in order to hit the golden 25 number. The average amount that households spend per year is £27,216, according to the latest data from the Office for National Statistics. That means that you would need to save £680,400 in order to be able to retire. Sarah Coles from Hargreaves Lansdown said: "Because you are only taking the income earned from your investments and leaving the remaining underlying investment untouched, it should technically last forever. "But bear in mind that there will be some years when you get more income and some when you get less, so you need savings you can call on when the income isn't enough. "Otherwise, you will eat into the capital – and once you do that, you will gradually erode your retirement pot." If your income after tax was £30,000, then you would need to save a huge £1,250 a month in order to hit that target within 24 years. If your income after tax was £35,000 and your annual spend was £30,000 - which could be the case for larger families - then you would need to save a total of £750,000. Saving half of your income - £1,458 a month - would take you 23 years to have enough to retire on. If you're saving as a couple and your income after tax was a combined £45,000, and your annual spend was £40,000, you would need to save £1million. Saving half of your combined income - £1,875 a month - would take you 24 years. The faster you can save this amount, the earlier you can retire - so how do you do it? The key to saving enough money, according to the FIRE movement, is by investing it in the stock market. Some FIRE savers do have pensions, but they can be restrictive. That's because you can only access your private pension at 55 years old (or 57 from 2028). While saving into a pension is really important because of the tax benefits it gives you, FIRE savers say too much of your cash should not be locked away until later life. This is a risky strategy, so you need to start early to ensure it works, says Laith Khalaf from the investment platform AJ Bell. "FIRE highlights the value of early contributions into the stock market," he said. "The younger you are when you start saving or when you invest, the more time you have for that money to grow and become a sizeable pot. That's a really valuable lesson that FIRE saving can give you." 3 Investment expert Laith Khalaf said it's crucial to start investing as early as you can Credit: Supplied How do you invest in the stock market? THE key idea of FIRE is to invest in the stock market - so how do you do it? The first thing to do is check if you are in a position to be able to invest. Experts say you should have three to six months' worth of wages in a savings account you can access before you begin investing. You can start with just £1, but how much you can make depends on how much you invest and where. The first thing to do is to open a stocks and shares Isa. You can save £20,000 a year into an Isa. Any gains - which is the difference between what you paid for your investment, and what it is worth now - are tax-free. Stocks and shares ISAs are offered by several major banks including NatWest, HSBC, Barclays and Lloyds Bank, and investment platforms like AJ Bell, Hargreaves Lansdown or Fidelity. When you open your account, you can either choose between a selection of ready-made investment funds or you can pick your own. Ready-made investment funds are usually popular among beginner investors, and will range from low to high risk to help you meet different financial goals. They include a mix of assets, including company shares, bonds, property and gold. Some providers will ask you to complete a short quiz when you sign up for a stocks and shares ISA to help you decide which of these ready-made plans to choose. FIRE savers may want to take on more risk than usual in order to make higher returns - but remember that the losses are bigger if your investment doesn't work out. For example, if you chose the low-risk "defensive" fund at Barclays Bank then 66 per cent of your money will be held in cash, 16 per cent will be kept in bonds and 18 per cent in shares. This has an estimated return of 2.11 per cent after 10 years, so if you invested £100 a month over this time period, you would be left with £13,470. But if you chose the higher risk "adventurous" fund, just two per cent of it would be held in cash, nine per cent would be kept in bonds and 89% would be invested in shares. The predicted rate of return is 7.33 per cent over 10 years, so £100 a month over a decade would leave you with £17,834. If you're picking your own stocks and shares to invest in, research the companies you are considering backing. Use sites like Investegate to read the latest reports and accounts. Look at a company's 'fundamentals' - which means checking things like whether it is profitable, if sales and customer numbers are growing, and making sure it doesn't have too much debt. Watch out for fees, which can eat into the returns you make. For example, NatWest charges a fee of 0.55 per cent of the value of your investment. That works out at 55p for every £100 of your investments. In comparison, Barclays charges a 0.25 per cent fee, which works out at 25p for every £100 you invest. Try and save on high investment fees by shopping around for a platform which charges lower fees. The Financial Conduct Authority (FCA) says investors usually pay an average annual fee of 2.4 per cent for financial advice. So if you had £250,000 in investments, switching to a platform which charges 1.4 per cent could save you £2,500 a year in fees. Mind out for any nasty exit penalties or set-up fees. Beware of the risks. You must be prepared to lose it all - so only invest money you can afford to lose. You must be able to lock away your cash for five years to allow your pot to recover if its been hit by ups and downs of the stock market. It's usually better to drip feed money into your investments instead of putting down a big chunk of money in one go. Choose a lean or fat retirement diet plan A good way of planning for how much to save in your retirement is to save for either a "lean" or a "fat" retirement. Lean financial independence (Lean FI) and Fat financial independence (Fat FI) refer to how much of your spending is covered by your investments. Lean FI means your basic expenses are covered (rent/mortgage, bills, transport) but you'll be left with no money for holidays and luxuries. Fat FI means all your expenses are covered, and you can live a more lavish lifestyle by going on trips and taking up hobbies. It all comes back to the golden 25 number - and calculating your annual spending. If your lean expenses are £20k, you need £20k multiplied by 25, which equals £500k. If your "fat" expenses are £100k, you need £100k multiplied by 25, which is £2.5million. While Lean FIRE gets you there faster, Fat FIRE gives you more when you arrive. The 4% rule you NEED to know Once you've saved enough, the tricky thing is to know how to manage your money so you don't run out. Experts say the trick is to withdraw four per cent from your savings each year. This is the amount that you should be safely able to withdraw over a 30-year retirement without running out of money. The idea is that by the next time you need to take money out, your pot should have replenished, but that assumes that your investments continue to grow as normal. A FIRE saver's retirement could last even longer than that, so make a plan based on how long you expect to be in retirement. This is especially important because we are all living for longer, so use the Office for National Statistics' life expectancy tool, which will give you a rough guideline on how long you can expect to live, depending on your age. For example, the average life expectancy of a 40-year-old female is 87 - so for someone in this position retiring now, a sensible idea would be to budget for a 47 year retirement. 'I'm a money expert - how to make FIRE saving possible on any salary' CHARLOTTE Kennedy, Chartered Financial Planner at Rathbones, gives her tips on how to make FIRE saving possible on any salary: FIRE exists on a broad spectrum - from modest lifestyle adjustments that reduce unnecessary expenditure, to extreme sacrifices that can severely dent one's quality of life. The key is striking a balance. You don't have to forgo all present-day comforts to gain future financial freedom. Sensible money management and intentional spending can go a long way. Make a budget and stick to it by monitoring your bank account frequently. Avoiding lifestyle creep - where spending habits increase in line with income growth - can also help. You don't need to squirrel away 70% of your income to reach financial independence. Setting clear, achievable long-term goals, spending within your means, and investing consistently, while giving your money time to grow through the power of compound interest, can help get you there. Ultimately, FIRE shouldn't be about austerity for the sake of it. It's about taking control of your finances and making deliberate choices today, so you have more freedom tomorrow. The half your age rule The "half your age" rule is another handy way to boost your FIRE savings. It suggests that when you start saving for retirement, you should aim to contribute a percentage of your pre-tax salary equal to half your age. So, for example, if you start saving at age 22, aim to contribute 11 per cent of your salary. If you start at 30, aim for 15%. Factor your pension contributions into this calculation as well. Under the current auto-enrolment rules, workers must pay at least 8% of their qualifying earnings into their workplace pension every year. At least 3% of this comes from employers' contributions. If you have a private pension, like a self-invested personal pension, for example, factor in your contributions to this savings pot too. How YOU can retire at 35 following 7 steps FIRE saving can be tricky to stick to because you need to make a lot of sacrifices in order to save as much as possible. Luckily, there's a seven-step guide that husband and wife duo and successful FIRE savers Katie and Alan Donegan have created to help others retire early too. The couple retired in 2019, when Katie was 35 and Alan was 40, after saving £1million by investing in the stock market. Their seven steps are: Create a gap between what you earn and what you spend. This is how much you have leftover to save for your retirement. Log into your bank account frequently to monitor your finances and prevent overspending. Can you increase your income? Sell stuff you have lying around the house, rent the spare room or ask for pay rise. Reduce your spending - cancel Amazon Prime, Netflix and any subscriptions you don't use. Make lunch at home. Only buy what you need. Before you invest, build an emergency fund of £1,000. Pay off high interest debt such as credit and store cards. Invest in a low fee, simple global index fund like the Vanguard FTSE Global All Cap Index Fund. Do it in a tax efficient way (stocks and shares ISA or SIPP). Don't forget your pension. It's sensible to see if you can increase contributions into your workplace pension scheme. 'We saved £1million in 10 years using the FIRE method - we've retired to travel the world' HUSBAND and wife Katie and Alan Donegan saved £1million in just 10 years by following the FIRE savings method. They retired when Katie was 35 and Alan was 40, and now travel all over the world from Rio de Janeiro to California. "You don't have to be stuck in a job you don't like," said Katie. "That is what truly inspired us. "People just assume retirement is an age, but it's actually a monetary target." The couple got into the FIRE savings method in 2009. At this point, Katie, now 40, worked as an actuary, while Alan, 45, was a landscape gardener. Both were fed up of the daily grind, and couldn't stomach the idea of working into their 60s, so they started researching how they could retire early. That's when they began to strip back their spending and start piling money into the stock market. When they first started FIRE, they earned about £50,000 between them, but this soon rose to £150,000 as their careers progressed, which helped to fast-track their savings. Katie said: 'Usually, when people earn more their spending goes up too. 'Ours only went up a tiny amount. We worked hard to push up our earnings and keep expenses down. 'We never upgraded from the small two-bed flat we bought. 'We downgraded to a smaller, second-hand car. 'We never turned the heating on. We wore extra layers, used hot water bottles and made it a bit of a game. 'We saved over £40,000 in ten years simply by taking our own salads to work each day.' Alan invested the cash using ready-made funds, where the hard work is done for you by an expert. "Choose a platform such as Vanguard Asset Management or Interactive Investor and invest in one simple index fund. It's surprisingly easy and simple to do." As the couple do not have children, saving for an early retirement was much easier. By 2019, they had hit the target of saving 25 times their annual spend - which was £1million. Since then, they've managed to invest an extra £265,00 - £182,000 of which was from the sale of their property and £83,000 from the sale of Alan's business. Thanks to the power of compound interest, their pot now stands at nearly £2.2million. This supersized savings pot is held in global index funds, one of the most diverse kinds of portfolios where your money is invested in thousands of companies across 49 countries. They have crunched the numbers and believe that if they withdraw £40,000 a year to live off, this is enough money to last them for their entire retirement. They say this is more than enough money to be able to travel across Asia, America and Mexico. The couple now rent places on Airbnb or stay in hotels, depending on their location. This has included a five-star suit in Bogota, Columbia which costs just £42 a night. Other locations have included West Palm beach in Florida for £112 a night or Poland for three months last year where they paid £38 a night. 'I retired 28 years before the state average," said Alan. "I clawed back 28 years of my life. I couldn't think of a better use of cash. 'If you're in your 20s, 30s, 40s or even 50s, you can make it to being a millionaire.' How ANYONE can adopt the FIRE rules to improve their finances Before embarking on FIRE saving, really assess if it's right for you. Laith adds: "A lot of FIRE saving can be a bit joyless. "It requires sacrifices now, sometimes very high sacrifices, as the idea is that you put away a lot of money. Then, in retirement, you live quite frugally. "There's no point in your life where you are enjoying affluence. That might perfectly fit some, but it's not for everybody." If you feel like FIRE is too difficult to achieve, you can still follow the principles of the method to boost your savings. You're not in a position to save half of your income, but investing just £25 a month can help grow your savings to a healthy size. If you invested £25 into the FTSE 100, for example, which is the collective name for the 100 largest UK companies by value, you could turn £25 into £4,465 after 10 years. Over 20 years, that pot would grow to £12,609. That's assuming that your investment grows at a rate of five per cent a year after charges. A great principle of FIRE is to pay off your debts as quickly as possible. By focusing on paying off your debts, you end up saving yourself a lot of money in interest repayments. For example, if you were focusing on paying off a £150,000 mortgage debt and making £200 worth of over-payments a month, you'd clear your debt seven years and six months early, saving you £33,130. Before making over-payments, check if your lender lets you do this penalty-free. Most let you make over-payments worth 10 per cent of your outstanding mortgage debt per year.
