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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.

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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)

Next Story

Why Young Americans Are Not Moving A Lot Since The Great Recession

Young American adults are staying put more since the Great Recession, but when they do move, they’re not going to the same places as they did before the economic downturn

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US, America, Millennials, Migration
Frey, who keeps expecting millennial migration rates to pick up, is disappointed with the numbers. Wikimedia Commons

Young Americans are staying put more since the Great Recession, but when they do move, they’re not going to the same places as they did before the economic downturn of 2007-2009.

In the three years leading up to the recession, more Americans in their 20s and 30s headed to Riverside (California), Phoenix, Atlanta, Houston and Charlotte (North Carolina), according to the U.S. Census Bureau’s American Community Survey.

“Those were more kind of ‘We’re coming there to buy a house and get a job and make things go,’” says demographer William Frey of the Brookings Institution.

Things changed during the recession and in the years that followed.

From 2007 to 2012, America’s metro areas that gained the most millennials were Denver, Houston, Washington, D.C.; Austin (Texas) and Seattle. From 2012 to 2017, the metropolitan areas with the highest net millennial migration were Houston, Denver, Dallas, Seattle and Austin.

US, America, Millennials, Migration
Where US millennials are moving. VOA

“Young people may not be finding the job that they want and they’re not be able to buy a home that they’d like to buy,” Frey says. “At least they want to be in a place maybe where the action is for younger people, the kind with a young person’s amenities, or what you might call places with a cool factor.”

Overall, U.S. millennials are moving at the lowest rate since at least 1996. In 2017, their migration rate was 17%, well below the pre-recession number of almost 23%.

Frey, who keeps expecting millennial migration rates to pick up, is disappointed with the numbers.

“Migration is good for the economy in the sense that people are more able to adapt to changing economic circumstances… if they move to places where jobs are being created,” Frey says.

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“Especially if it’s a movement to purchase a home and to start investing in their future in terms of wealth creation and so forth. I think that’s important so that they’re not stuck in a way that makes them feel like they’re being left behind.”

Frey sees signs that millennials are starting to move to the suburbs and smaller metropolitan areas, as well as to cities located in the interior part of the United States rather than on either the East or West Coast.

“I’m suggesting that when we look at the next round of migration rates, when they come out, we’re going to see a little bit more movement to those kind of more, you know, economically viable and prosperous areas rather than to the cooler areas,” he says. (VOA)