One of my long-term goals is to retire early. Early in my debt-reduction days, I learned about the FIRE movement and it really appealed to me. FIRE stands for Financial Independence, Retire Early. The philosophy is to stay out of debt and have a high rate of savings, living below one’s means so that it’s possible to retire early.
I’ve personally had a goal to save approximately 50% of our household income. We aren’t quite there, but we’re not too far off (when you include all types of savings, including HSA and IRA contributions, etc. etc.). When saving 50% of your income, and assuming approximately the same rate of spending in retirement, 1 year of working = 1 year of saved living expenses!
