Financial independence, the dream of many. Will we still need income and money to live on tomorrow? Probably yes. And where will that come from? Probably … well. The search for meaning in work is becoming more noticeable, the fear for gainful employment in the future louder. The acronym FIRE stands for “Financially Independent, Retire Early”. We show you what financial independence is all about.
What is FIRE?
A movement is currently taking place around the world in which more and more people want to achieve financial independence using their own resources and with the help of the financial market. FIRE or financial independence means that we use our own resources and smart investments to make ourselves independent of the traditional employment market. If you have enough, you can get off the hamster wheel and live your life as you wish. Financial independence means having the freedom to decide whether or not you want to work or what kind of work you want to do and how much.
Why FIRE is becoming more and more topical
Money rules the world, that is the case in our capitalist society. However, our society has a problem with the distribution of money. Up to now, money has been paid for land, labor or capital – the fundamental values of an economy. But what if machines increasingly do the work? What if there is no longer enough work for everyone?
We can see it with the pension funds: the legally mandated personal provision in one’s own pension account is being eroded by redistribution. The current system is not suited to our ageing society. Discussions about an unconditional basic income are getting louder and the first municipalities and states are already experimenting with it.
If you don’t want to rely on the system, take action yourself.
FIRE in Switzerland
By European standards, we are a country with high living standards and relatively secure social structures. However, there is growing nervousness: will we still be able to afford this standard tomorrow? Can we maintain the supremacy of the franc?
Even if we are still earning at a high level today, we are equally affected by technological progress and thus by the decline in the importance of gainful employment. This is also shown by the boom in entrepreneurship.
We still have an excellent starting position for FIRE – enough money to achieve financial independence more quickly, as we achieve higher incomes in a strong currency compared to other countries.
How to achieve financial independence
Financial independence is different for everyone. Basically, it’s about earning enough income to live according to your own ideas.
One option is to temporarily work a high-paying job and save. We are talking about a quarter to a third of your income. The more, the better. Until you have enough to get out and live off your assets or the income from smart investments on the stock market.
Another option is to continue working, but to invest less time in it and ideally online and therefore flexible in terms of location. This also means great freedom, but also requires you to know how much you need to live on – wherever you are.
And finally, you can build up your own company and sell it one day or simply withdraw from the operational business.
Mach den ersten Schritt zur finanziellen Unabhängigkeit
In einer Minute siehst du deine Vermögensentwicklung und dein Einkommen während der Rente.
Last update: 08.12.2024 14:19
