The idea behind FIRE, or Financial Independence Retire Early, is to try to save as much money as you can now and retire at an early age.
NORFOLK, Va. — How does retiring early and being financially independent sound? Well, it’s happening for many millennials who are a part of the FIRE movement.
Like many of us, Vincent Montoro was taught the importance of saving money.
“From a very early age my dad said, ‘hey save as much as you can early on,’” he said.
Now, that way of life is becoming increasingly popular among millennials.
“My goal is to be able to retire probably in my 40s but actually stop working in my mid-50s.”
That movement is known as FIRE.
FIRE stands for Financial Independence Retire Early. Basically, FIRE investors, like Montoro, are trying to save as much money as they can now and retire at an early age.
“What stuck in my mind was millionaire by 40,” says Montoro.
Dr. Andrew Cohen, a finance lecturer at Old Dominion University, says the FIRE movement first popped up in a book in the early 90s. Then gained popularity as more people got online.
“The pandemic kind of further accelerated the movement by people enjoying having the freedom to do what they want and not be stuck in an office from 9 to 5,” said Cohen.
He says the theory is to try to save 50% to 70% of your income.
“People realize, you know, what’s the point of working so hard all your life to then wait until you get really old when you don’t have the energy to enjoy your money and wealth.”
34-year-old Montoro has worked with ships for most of his career. He says he loves what he does, but that doesn’t mean he’s not working towards retirement now.
“I’m saving as much as I can, as early as I can, to be financially free before the average age of retirement, 62, 67,” he said. “My plan for me is I want to retire and enjoy life way before that.”
He says if you have the means to start saving, it’s simple.
“All you need is time and a plan.”
Cohen says it’s all about being smart with your money and investing.
“When you work, it’s important to put as much money as you can in your 401K, in your retirement savings,” he said. “You want to save aggressively. You need to cut down your expenses and be frugal.”
Cohen says a big part of it is living a simpler life.
“Not to be extravagant, so a lot of it depends on your personality.”
Montoro says he’s on the right …….
