Important things to know about the FIRE Lifestyle

Dec 14, 2022Financial Literacy

Financial Independence:  Retire Early – it sounds like a pretty great concept.  A FIRE lifestyle is a movement of people devoted to a program of maximizing savings and investment that aims to allow them to retire far earlier than traditional budgets and retirement plans would permit.  To achieve FIRE, you’ll need to spend mindfully, save regularly, and protect your assets.  And just as the name would denote, the FIRE lifestyle truly is a lifestyle, it is about changing your overall financial behavior to work towards this goal.  Like any type of retirement planning, the FIRE lifestyle is different for each person, but the basic structure means you must spend less than what you bring in.    

Using the free *Native American Financial Services Association (NAFSA) Financial Literacy Program, you can explore online playlists with many modules that relate to overall financial competency, whether this is understanding 401(k) plans or estate planning, our curated playlists will provide you with important information.

FIRE Lifestyle:

Living a FIRE lifestyle may be within reach, but takes planning and strategic decision making.  First, it is important to identify how you envision the next 5-20 years, especially what you want to achieve in that time.  Other things you’ll need to do are:

  • calculate how much money is needed to reach financial independence
  • pay off debts
  • track and cut back on spending
  • generate multiple streams of income
  • stay focused on your goals

Our FIRE Lifestyle module, located in the Preparing for Retirement playlist helps you better understand the FIRE lifestyle and whether or not this is feasible or makes sense for you based on your wants and needs.  Factors like cost of living, types of savings vehicles, and other important considerations are broken down, and a FIRE savings calculator is even included!  A FIRE lifestyle may seem daunting, but this module can help you work through some of the initial planning and provide you with other insights and tools as you progress on your financial journey.    

The NAFSA Financial Literacy Program provides a variety of modules and tools with easy-to-understand information to help people better comprehend their finances and make more informed decisions.

Explore the program today:

*The NAFSA Financial Literacy Program content contained on the NAFSA web page(s) referenced above, and on any subsequent pages created by our service providers/partners, provides general consumer information. It is not legal advice or regulatory guidance. There may be other resources that also serve your needs and you are always encouraged to, and should, consult with your own professional advisors prior to making any financial decisions.

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