Financial independence retire early, otherwise known as FIRE, is a movement that involves saving up a good portion of your income in order to become financially independent as early in life as possible. And although some may have the goal of completely retiring as soon as possible in life, many people choose to pursue FIRE out of a desire we all should have. Which is to not have to rely on a job in order to cover all of our living expenses. This might give you the freedom to quit a job you hate and instead work in a less stressful, more fulfilling line of work. It could also mean working only part time which would give you more free time to do more of the things you love. Or you can choose not quit your job at all and instead enjoy earning even more money with an additional income stream.

Successfully achieving FIRE isn’t an easy thing to do though, especially with all this talk of a recession on the horizon. And wether or not you can achieve it depends on a lot of factors. It requires a lot of discipline on your part because you have to consistently save a good portion of your income every month. It can also mean sacrificing lifestyle choices, such as eating out less often and going on fewer vacations. But there’s nothing that can replace the peace of mind that comes with knowing that if you were get fired tomorrow, you wouldn’t have to worry about paying your bills. One thing younger people don’t take into account are medical expenses. Did you know a couple retiring today can expect to pay a total $315,000 in medical expenses over the course of their retirement?

There’s a few different ways you can achieve FIRE. Some people like to build up large positions in index funds, some people prefer buying rental properties, and some people choose a mixture of different strategies. In my opinion if you couldn’t tell based off the title of this video, I think dividend investing is not only the best but the easiest way of achieving FIRE. I’m not trying to say index funds and real estate investing is bad, I do like both of those options too. And if you want to diversify your portfolio than these are both good strategies you can pursue simultaneously. But when comparing how feasible it is to become financially independent if you’re not already wealthy, to me dividend investing is the superior choice.

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