FIRE: What It Stands For

William Suplee |

One of the big financial planning topics to surface in 2018 was FIRE (financial independence, retire early). There is a whole subgroup of millennials changing the focus of their financial planning from the traditional plan of working till 65, raising a family and then retiring. The focus of FIRE is to find a way to live the life they want on their own terms at a relatively young age. For some this might be their 40s, for others it’s in their 50s but they're trying to find a way to save enough money early in their career and through prudent investing, have enough to do what they want to do with their life while they’re relatively young.

Much of this idea is fueled by the concept of maximizing your saving and putting it away early. Millennials who understand history and look back see that saving early is better than saving larger amounts later. This idea doesn't mean that they necessarily intend to completely drop out of the workforce, only that they might use some alternative method of working either from a remote location, telecommunicating or some other way to fulfill their lifestyle goals.

Only time will tell if this is going to work but I certainly salute the discipline that's required to maximize savings and to take advantage of systematic investing as a young adult.