Most of us believe that retirement is at the age of 60 or 65. Today’s young generation is asking this question as they want to retire early. Many of them want to retire early. He wants to join FIRE i.e. Financial Independence Retire Early Model. This is a strategy by which you can retire early. By saving and accumulating as much money as possible, you can build yourself a large fund. Many people in western countries have been following this formula for a long time, but it is still new in India. By adopting this model, you can determine your own retirement age. If you adopt this model, you need to develop a strategy. An important step in this strategy is to put 70 percent of your salary into savings. This model is mentioned in the 1992 book Your Money or Your Life by Vicky Robin and Joe Dominguez.
1. Calculating fire numbers
Knowing the fire number means choosing the age at which you want to retire. For this you need to calculate keeping in mind your salary, expenses, lifestyle and lifestyle after retirement. If you are not able to do these calculations yourself, you can take the help of a financial planner.
2. Increase savings and reduce spending
The most important aspect under this model is that your savings should be maximum. Also, you need to control your expenses and reduce them.
3. Focus on revenue growth
A well-paid job can guarantee an attractive income and becomes an advantage for adopting the FIRE model. However, if you don’t have a good paying job, you should take care of it as soon as possible. You can’t retire young if you don’t have retirement income.
4. Increase your savings and deposits every year
Your salary will increase annually. Along with this annual salary, you also need to increase your savings every year. This is because you have to manage expenses after retirement and that too without a job and that cannot be done without savings.