Are your finances on FIRE? (That’s Financially Independent, Retiring Early)
If you’re anything like the average Kiwi, you see retirement as something that happens after you turn 65 (or, *cough*, 67). You stop working, live off the pension, and you’re Officially Retired.
But it doesn’t have to be that way, and there are people all over the world challenging ideas about post-65 life. Here’s five things you should know about the New Retirement.
Your finances can be on FIRE
One of the ‘new ways’ is called FIRE – Financially Independent and Retiring Early. You don’t have to wait until you’re 65 to retire – there are people doing it in their 30s! The retirement age is tipped to go up, but that doesn’t mean you have to do what everyone else is doing.
Resources on early retirement abound
There are heaps of FIRE bloggers all over the world. Blogs about FIRE (such as Mr Money Mustache and Mr Tako Escapes) are encouraging people to sort out their finances early and be more frugal with money with a view to having more independence, sooner.
Minimalism is a winner
Part of becoming financially independent is downsizing your life and your expectations. There’s a whole movement on minimalism not just in the world but also right here at Credit Simple.
Home sweet home
You don’t need a mortgage-free house in Auckland (or in Wellington). You just need a mortgage-free house. Some of the smartest cookies out there have sold up their city property to live like kings in other (very sunny and picturesque) parts of the country.
KiwiSaver is still a no-brainer
Even if you’re going to retire early (yay!), KiwiSaver is still a no-brainer, particularly if your employer is contributing 3% (rather than having a total remuneration package) and to glean the $521 tax credit each year if you make the contribution threshold.
