What is “Savoring” and How Can it Help You Build Wealth?
To understand Coast F.I.R.E, you first need a firm understanding of the F.I.R.E movement. F.I.R.E stands for financial independence, retire early. Followers of the movement save heavily early in life with the goal to accumulate a large sum of money to live on for the rest of their lives. In essence, they retire early by living on the income from their investments. This takes discipline, time and money. Coast F.I.R.E is when followers employ the same strategy but instead of saving enough to completely retire and never have to work again, they save enough to never have to save again. This strategy allows the money that you have to continue to grow on its own without further investment. Here are three reasons to pursue Coast F.I.R.E:
If you are trying to save enough to retire early, you will either need to save upwards of 70% of your income, or it will take considerable time to amass a large enough nest egg to live on for the rest of your life. Coast F.I.R.E on the other hand allows you to build up a more manageable sum and typically in less time.
Typically to stop working altogether before age 50, you need to live a very frugal lifestyle. Even after you reach the goal, you will still need to be frugal if you are living solely off the income from your investments alone. For this reason, many people who pursue F.I.R.E end up working part time or blogging for additional income after they pursue early retirement. By saving enough to never have to invest again, you free up your income to spend freely and upgrade your lifestyle now. Imagine only needing enough to meet your basic living expenses and then using your surplus to do whatever you desire.
The pursuit of financial independence is mostly about being able to live life on your own terms. While you will still need income for Coast F.I.R.E, you will have much more freedom about how you receive it. For example, a person who doesn’t need to save anymore and already has lowered their debt levels is free to take on lower paying work that may be more fulfilling.
Questions about F.I.R.E? Check out this video.