Welcome back to the fourth episode of Money talks (for teens) with myself – Ms Broke in Bristol – & my daughter Little Miss Diva. We’ve launched Money Talks (for teens) to help the younger generation learn about money and get the financial
Who doesn’t dream of retiring early? If this is something you dream of then the best advice is to start young! The FIRE (Financial Independence Retire Early) movement says that if people invest 50 to 75 percent of their income, they could retire in your 30s or 40s.
To do this you’ll need to focus on keeping your expenses as low as possible. Obviously the higher income you’re on the easier it will be, but you can look at adding to the income you get from your day job by starting a business or side hustle and learning about investing.
FIRE is a movement that has been made popular through blogs and social media and even though it’s been around for three decades it’s now starting to gain more momentum than ever. It encourages young people to plan for their retirement by learning about investing in the stock market and not just saving their money.
Although It’s too late for me to adopt this plan, I really love the fact that the movement encourages younger people to think about their expenses by splitting them down into assets and liabilities. For example, many people who practise this movement live simply because they believe that having a lavish car is a liability not an asset. The movement also encourages youngsters to reject consumerism by only buying new clothes when it’s essential. There’s a wealth of information online and Dave Ramsay is a proud ambassador of many of the movement and many of its principles.