In 2021, retiring between 65 and 70 years old seems old school to young people. Improving technologies make knowledge accessible to all which is fantastic considering the high price of colleges and universities. The youth understands that they do not want to work for long and would rather enjoy life on an island sipping wine. However, is it possible to do so when you are a middle-class individual with a normal paying job? Yes, it is possible. A lot of people are doing it, which is the aim of the  FIRE movement.

Table of Contents:

  1. What Is the FIRE movement?
  2. What is the Best Way to Create Stable Monthly Cash Flows?
  3. How can You Benefit from it?
  4. How can Cloverhut Help You Be a part of the FIRE movement?

What is the FIRE movement?

FIRE stands for Financial Independence Retire Early. The movement started spreading in the 90’s thanks to a book called Your Money or Your Life by Vicki Robin and Joe Dominguez. The goal is to invest wisely in order to create some monthly cash flows that are sufficient to support your monthly expenses. There are multiple ways to do it but they are all great as long as they generate monthly cash flows. People understand that working a 9-5 can be quite time-consuming and exhausting. They are trying to escape that life by stacking money as much as possible to invest it and become financially independent by 30-40 years old. This technique is extremely feasible but requires a lot of discipline as a lot of sacrifices will have to be made. People that are a part of the movement live with almost nothing and invest 50-60% on their primary income and invest all the income of their side-hustle. Living such a life can take a toll on you as saving and investing aggressively is quite hard to execute. The FIRE movement means almost no restaurant evenings, no cinemas, no cars, no expensive clothing and technology, no expensive homes, basically nothing that is not necessary to live. There is a huge difference between needs and wants and that is very well understood by people that are a part of the movement as they only focus on needs for a decade to be able to retire at 35 years old.

Are There any Pitfalls of the FIRE Movement?

Just like anything in life, it cannot only be positive. Even though the positive outweighs the negative, extreme frugality can have some consequences on your mental health. While you might be better off financially, you will notice that your young years go by fast without you having the opportunity to make the most out of them. A great example is the one of Lisa from Mad Money Monster who decided to follow the footsteps of thousands of people by cutting back on wants and focusing exclusively on needs.

“Our extremely frugal lifestyle took shape by cutting out almost everything we ever enjoyed. We cut our cable, slashed our mobile data plan, halted our habit of going out for dinner, and even put an end to our Sunday coffee dates.”

It is really demanding to sacrifice all the little pleasures in life. Even though it will pay off in a big way afterwards, you should definitely think twice before joining the FIRE movement.

What are the Best Ways to Create Monthly Cash Flows?

The best way to create monthly cash flows is probably through real estate. Investing in real estate is a great tool to generate monthly cash flows and hedge against inflation. As inflation rates rise, the value of your money decreases. That is the reason why FIRE members invest their money instead of saving it. A lot of people believe that money should work to generate more money. Guess what, these people are right as the return on investment covers the inflation allowing you to do more with your money. Real estate is great because you get stable monthly cash flows and if you acquire a lot, you can easily make more than 5000€ per month.  In the future, retirement pensions might not be sufficient for you to get by. Consequently, you should try to support yourself financially without counting on your retirement pension.



How can Cloverhut Help You Retire Early?

If you are seeking to become a part of the FIRE movement but do not know where to start, Cloverhut is here to help. Indeed, our company is a great start because we help you acquire real estate for a starting price of 2€. Our goal is to make homeownership accessible to anyone . We work hard every single day towards achieveing our goal by giving people from all backgrounds the opportunity to enter our house raffles from anywhere in the world. Cloverhut is a great start because you could get a house without having to pay off mortgage. As soon as you put your house up for people to rent, it is going to be a cash flow generating asset that only requires an investment of a couple pounds. With that being said, you can enter our raffles here. For the ones that would like to benefit from great perks including trips to Spain and more, you can join our CloverClub. Our club will give you more chances to win the house as you will get more tickets.

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