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Millennials join FIRE Revolution to make more Savings but Retire Early

Realising that economic slowdown can hit them anytime, millennials in India have joined the global FIRE movement

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FIRE
FIRE (financial independence, retire early) believes in saving early, living in a financially-restricted regimen and keeping a substantial portion of its income aside in order to take control of things after retiring young. Pixabay

At 23, Bhopal-based Prateek Jain is the CEO of lifestyle startup Sttago and part of FIRE. By some smart saving and wise investment, he aims to retire by the age of 35.

His plan is simple: save early aggressively and invest wisely, cut down on expensive lifestyle and put a significant chunk of the income into instruments that will give timely returns towards his golden years.

He feels proud to be part of the global community of FIRE (financial independence, retire early) that believes in saving early, living in a financially-restricted regimen and keeping a substantial portion of its income aside in order to take control of things after retiring young.

“I want to experience life in its myriad forms rather than waiting for a seven-day family holiday in an entire year. I want to do things I am passionate about, and not be constrained by funds which most of us face in our golden years,” Jain told IANS.

The thumb rule is to spend only on bare, basic necessities and save the rest. “I spend on basics like fuel, food and simple living. One has to stop living a luxurious life in the initial years to enjoy later,” he said.

Gone are the days when young adults used to spend all their earnings in partying and shopping. Realising that economic slowdown can hit them anytime, millennials in India have joined the global FIRE movement.

It was popularised by husband-wife duo Kristy Shen and Bryce Leung, who decided to retire at 31 to traverse the world, and has now reached India.

FIRE
Realising that economic slowdown can hit them anytime, millennials in India have joined the global FIRE movement. Pixabay

FIRE is dedicated to a wishlist of extreme saving and investment that allows proponents to retire far earlier than traditional budgets and retirement plans would allow.

The idea of the movement was initiated by Vicki Robin and Joe Dominguez in their 1992 best-selling book “Your Money or Your Life”, and seconded by Jacob Lund Fisker in his 2010 book “Early Retirement Extreme”.

These works provide the basic template of combining simple living with income from investments to achieve financial independence.

FIRE is achieved through aggressive saving, far more than the standard 10-15 per cent typically recommended by financial planners.

Today, several young Indians are joining the movement, sharing their stories on various social media platforms and encouraging others to be part of the revolution.

Ashish Sawlani, 22, who is from Raebareli and working at a start-up in Gurugram, said the millennial revolution is a solid retirement strategy.

“It lays emphasis on the idea of ‘savings’, as our parents taught us. I am making use of this strategy and trying to cut down my daily expenses like travelling and ordering food online. I have shifted to public transport and I cook my own food. It is working for me,” Sawlani told IANS.

FIRE
FIRE is achieved through aggressive saving, far more than the standard 10-15 per cent typically recommended by financial planners. Pixabay

“I can’t see myself working at age 50 and still struggling for financial independence. I want a peaceful retirement as early as 40 so that I can enjoy the rest of my life,” he said.

Sarah (32), who owns a cafe in Old Manali, said, one cannot retire from what one loves to do.

But early investment planning for the long-term is the key, said Jain.

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“You need to invest in a business that earns money for you, even if you stop working after some years. Initially, you need to give everything you’ve got. Invest in mutual funds and assets which gives you passive income on a regular basis,” he suggested. (IANS)

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Reasons why Indian Millennials Love Smartwatches

Indian millennials fall in love with true smartwatches

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Smartwatches
India saw the arrival of 1.87 lakh smartwatches in the third quarter. Pixabay

BY NISHANT ARORA

Smartwatches do tell the time — like smartphones that still make and receive calls — but this particular wearable segment has come of age with real-life use cases in areas like health and fitness along with a connected app ecosystem that has made them a preferred choice for the Indian millennials.

According to the International Data Corporation’s (IDC) “Worldwide Quarterly Wearable Device Tracker Q3 2019”, 3.07 lakh watches were shipped during the third quarter into India — registering 47 per cent growth quarter-on-quarter and 127 per cent growth year-on-year.

Smartwatches
Apple, Huawei, Fitbit and Fossil are true smartwatches while the rest of the crowd comes under the basic watch (with smart features) category. Pixabay

Among the watches, the country saw the arrival of 1.87 lakh smartwatches in the third quarter, registering 28 per cent QoQ growth and 93 per cent YoY growth.

With a strong millennial base with rising disposable income, India now offers immense growth potential for the smartwatch players, currently being dominated by the Apple Watch Series.

Here, one has to understand the difference between a true smartwatch and a basic one.

Apple, Fitbit and Fossil are true smartwatches while the rest of the crowd comes under the basic watch (with smart features) category.

To make it simpler, a basic watch is like an entry-level smartphone — brands like Huami’s Amazfit, Huawei etc. — while smartwatches — that can run third-party applications on the device itself — is considered truly ‘smart’.

“Basic watch includes devices resembling traditional wrist-worn watches and/or devices where timekeeping is a primary function. Timekeeping and a default watch screen, or watch face are a requirement for a device to be considered as a basic ‘watch’,” Jaipal Singh, Associate Research Manager, Client Devices, IDC India, told IANS.

In a price-conscious market like India, several brands have entered the basic watch category with smart features, especially related to health and fitness.

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Smartwatches saw a healthy 99.6 per cent (YoY) and 42.9 per cent (QoQ) growth in the second quarter in the country. Pixabay

“The mid-range segment or entry-level watch (basic watch) segment is growing very fast as more and more Indians realise the importance of staying fit. People who wore fitness bands for years are now switching to such watches, and, eventually, true smartwatches. We will see more brands entering this segment in 2020,” elaborated Singh.

Earlier, in the second quarter of 2019, the India market for wearable devices grew 30.9 per cent sequentially — reaching an all-time high of 30 lakh shipments in a single quarter, according to the IDC.

Smartwatches saw a healthy 99.6 per cent (YoY) and 42.9 per cent (QoQ) growth in the second quarter in the country.

At the rate of 30-40 lakh wearables each quarter, we can easily see India consuming in between 1.2 crore and 1.5 crore wearables in a year which is still small compared to globally but the growth is stupendous.

The wearable market is expected to reach global shipments of 222.9 million units in 2019, with earwear and watches accounting for more than 70 per cent of all wearable shipments by 2023.

Also Read- 2020 Likely to be Strongest Year for Apple in India: Experts

According to Ramon T. Llamas, Research Director, wearables team, IDC, smartwatches “will move deeper into health and fitness and connect with multiple applications and systems, both at work and within the home.” (IANS)