FIRE investment strategy: How to get started ?

The FIRE (Financially Independent, Retire Early) movement is fast becoming popular. Professionals today, young and old, are looking for ways to be financially independent without having to work the classic 9-to-5 job. That doesn’t come easy, but FIRE makes it possible. 

What is FIRE?

FIRE is a movement based on a 1992 best-selling book titled Your Money or Your Life by Vicki Robin and Joe Dominguez. The principles of FIRE center around a lifestyle in which one works towards being financially independent so that early retirement is possible. 

This movement means something different for each individual. For one it could mean having enough to live comfortably without needing to work every day. Another person may want a frugal lifestyle without having to work at all. For many, it simply means being able to live comfortably without financial worry.


Often people find themselves stuck in a position where they can’t leave a job, because they are the financial support for their family. This leaves them afraid, thinking they won’t find something they could be truly passionate about. With FIRE, what used to be a side business can now become a priority. 

FIRE allows young professionals today to live a life where they find fulfillment in their day-to-day life, instead of unhappily working for a paycheck. It means having more time to do what they enjoy the most – traveling, spending time with family or starting their own business. All it takes is proper planning and self-discipline.

Where to start

The FIRE movement works based on allowing people to limit their work hours and maximize their savings rate. The savings rate is the percentage of income that goes towards saving and investing each month and it is key to becoming financially independent. 

To determine how much money one needs to retire comfortably, one must understand their monthly expenses. The “rule of 25” is a good measurement to use. It calculates the amount required to be financially independent as 25 multiplied by annual expenses. For example, if annual expenses are R120 000 (R10 000 a month), one would need R3 million to become financially independent. 

To reach that goal means to lower monthly expenses. It’s ideal to cut back on spending, and data usage, and only go out for special occasions. Sometimes limiting water and electricity use is a good idea as well. 

The future is uncertain with many variables to consider when planning for retirement, making it easy to overlook something. This is where an investment plan goes a long way.

Contact Remnant Advisory for advice to build your FIRE plan.FIRE is achievable for anyone willing to work for it. Invest in yourself and start planning for a future where early retirement is a probability, not just a possibility.