The stages of F.I.R.E. (Financial Independence, Retire Early)

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There are many paths that can lead to success when pursuing Financial Independence, Retire Early (FIRE). Every person has the choice to pursue a path that best suits their individual needs and wants. Most people talk about Fat FIRE as the only option, but I believe many people would actually be interested in pursuing an individual approach that fits their lifestyle - which may be outside of the so called "norm". Here are the stages of F.I.R.E. (Financial Independence, Retire Early).
Regular FIRE 4:02
Lean FIRE 6:47
Fat FIRE 9:35
Barista FIRE 13:48
Coast FIRE 17:33
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I'm not a financial advisor and the content discussed today is merely my opinion and intended only for your entertainment. The content expressed in this video should not be considered as professional financial advice. Some of the links above are affiliate links and come at no cost to you.
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24 июн 2024

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Комментарии : 124

@DividendGrowthInvesting Год назад

Which stage are you working towards? Try M1 Finance: bit.ly/TryM1Finance How to Transfer to M1: bit.ly/TransfertoM1 Try Seeking Alpha Premium: bit.ly/SeekingAlpha-DGI Instagram: instagram.com/dgi_jake/ Dividend Reinvestment Calculator: bit.ly/DividendReinvestmentCalculator

@bonespro Год назад

At 48 years old. I thought I could work forever. Once I hit 45 I was DONE. So if you are young, remember that you will be in another stage of life and what you love doing now could become your nightmare.

@pseudonymhacklife4111 9 месяцев назад

Straight facts. There’s other reasons beyond burnout, that can force someone out of the workforce too. Mind those possibilities, too. I hope catch a second wind, if that’s what yiu even want, bonespros ;)

@xJoeKing 2 месяца назад

Wise words!

@namitajain68 5 месяцев назад

Achieved lean FIRE, cut down on all frills, doing very limited paid work. Just enough to eke out living without dipping into my corpus. In third year of slow life at 55. Loving it.

@user27455 Месяц назад

Awesome! All the best

@bigfootruben 28 дней назад

Never seen them broken down like this. Now I know that what I’ve been wanting is Barista Fire. Thank you!

@DividendGrowthInvesting 27 дней назад

Glad I could help!

@derwinmitchell9947 10 месяцев назад

Lean 🔥 is fat 🔥 in the Philippines, Thailand, Panama, Mexico, Colombia, Vietnam, Bali, Jamaica, or the Dominican Republic

@DividendGrowthInvesting 10 месяцев назад

I get tempted everyday to sell everything and move to Panama!! I'm visiting Panama in January!!

@TheRamblingSoul 5 дней назад

Hell yeah Thailand! They just came out with a new (relatively) cheap digital nomad visa, renewable up to 5 years for 6 months each time

@DallasHarv Год назад

delayed gratification examples: 1) drive your car until it dies. not the A/C dies. you suffer through a few windows down summers. 2) no more restaurants. cook at home for all special occasions. I find everyone likes my cooking more than any place we've been. don't know how to cook? you'll learn after awhile.

@DividendGrowthInvesting Год назад

Yup!!! I really like meal prepping. It saves so much money!

@forcedair92gt94 11 месяцев назад

I don't ever want to go to another eat out restaurant again. With everyone expecting you to tip them a light bill, pay half their rent, or fill up their gas tank for a cheese burger, fries, and drink order.

@malvanlondon8683 7 месяцев назад

Very helpful overview. Thanks.

@aussieexpat 6 дней назад

In a lot of ways... the delineations between the "FIREs" is unhealthy... Fat fire often works against fire principles including being Frugal and actually retiring early.

@claireworld_ Месяц назад

You sound so genuine! I’m happy barista fire is working for you!

@bigthangz5489 2 месяца назад

this is a gem 💚

@aventurado Год назад

this videos was needed

@ruidykeman7422 23 дня назад

Got sick was out of work for some time and am no longer able to do full time employment. was lucky though and landed on Barista fire with out knowing what that was. also vary fortunate that I'm in a position where monthly revenue continues to grow so with a few more frugal years i will achieve my Fire goals.

@Mohamed-yx8cy 3 месяца назад

Amazing content Now I gotta grow this mentalty if I really wanna retire at my fourties to mid fourties

@guillermoramirez1945 Год назад

Great content. Lean FIRE, enjoy the ride of life. 😎

@DividendGrowthInvesting Год назад

Can be a great option!!!

@kwokweng76 Месяц назад

this is the best explanation on FIRE so far......thanks

@DividendGrowthInvesting Месяц назад

Glad it was helpful!

@adoringyourhair 9 месяцев назад

So helpful

@DividendGrowthInvesting 9 месяцев назад

Glad it was helpful!

@jakechizzle007 Год назад

Hey Jake, thanks for straight to the point content.. liking the flow of these videos..🙌🏾

@DividendGrowthInvesting Год назад

Thanks for watching!!!

@goodsir7298 Год назад

Personally i don't want to retire early. What motivates me is the F.I. part of fire. The knowledge of knowing you are never stuck in a toxic situation, or if you want to take a break and travel for 6 months you can. Knowing that you are independent to make your own choices without losing everything is where it is at.

@DividendGrowthInvesting Год назад

I competely agree! It comes down to having F you money. Being able to control what you do on your terms instead of on someone else's terms.

@CalmerThanYouAre1 Год назад

💯

@thanasisk 10 месяцев назад

Exactly, living without the anxiety of pay check to pay check, debts, etc. is priceless. Living without a purpose and/or motivation is not !

@hallpaintandbody7717 Год назад

Lean fire kinda dude. I'm stocking my freezer full of home grown vegetables, l grew. I live in the woods. It's 15 miles to the nearest grocery store.

@DividendGrowthInvesting Год назад

Sounds so peaceful! I would much prefer that than living with someone on top and below me in a big apartment complex in the city!

@thecapone45 Год назад

Lol this one made me chuckle! I work in a restaurant and we are able to take food home. I get jokes that I must have some deep freezer because I take so much food home! I've got my freezer stocked with food. As of June 25, 2023, I have not had to take a full grocery trip since like October 2022!! Saves so much money!

@gungnir3926 7 месяцев назад

I was thinking about something like the 5-4-3 percent fire. Where you save and work until 5%rule, go down in time and/or contributions until 4% rule, let it simmer for a year or two, reach 3% rule and then safely FIRE fully (meaning working oddjobs, hobbies, volunteer etc. noone should aim for total avoidance of productivity, this is also only a tiny contribution to expenses, maybe only used as gifts to family/kids, perhaps as gifts to the kids to start their investments?) with a growth of 7% average this only takes 4-6 years. more gradual slowing down, less stress about finding good deals on purchases like house, more flexible in avoiding a very bad market year to start fire, and the 3% rule is much safer. i bet this also makes it easier to keep network from work going, perhaps keeping a door open to easily work oddjobs for high pay? keep colleeges as friends? whatnot.

@DividendGrowthInvesting 7 месяцев назад

I like that way of looking at it. It just shows that there are many paths that can work.

@daralynx2 4 месяца назад

We got to regular fast having an income suite attached to our house. No housing expenses at all. Also pays our phone, internet, auto insurance, etc.

@ethanshy280 Год назад

Hi, not sure why there are two already, but I’m continuing the trend.

@DividendGrowthInvesting Год назад

lol hi :D

@callumfrank 11 месяцев назад

Living below ones means is difficult but necessary. I've made lots of money mistakes but I've learnt from them. I have 25% of my capital in an IRA, 20% in index funds, and the balance in other investment accts in cumulative of 440k. I receive income from rental property too. Took me a while to get here though. Ever heard of ferrochrome financial securities ?

@mariannagreenlee Год назад

I think I am heading towards Barista FIRE. I plan on retiring in 2 years, at 55. I have earned a pension and collecting dividends will be my side hustle.

@DividendGrowthInvesting Год назад

Barista FIRE has a lot of benefits! It keeps you busy and you are still being productive and staying busy.

@user-bm6wu9zw9m Год назад

I agree.

@garywillhide9977 4 месяца назад

What most people consider "Fat FIRE" is better described as "Fancy FIRE". You can live a fat life, with enough money to buy whatever it is you want, without wanting fancy things. ✌🌱

@TheFirstRealChewy 8 месяцев назад

Achieving FIRE would be great. However, we are aiming for FI by retirement if possible. Despite all the talk about retiring early, I've found that early retirement isn't really what I'm looking for. I'm looking for a lifestyle I enjoy, and it doesn't have to mean retirement.

@WW-34 Год назад

I use dividends to supplement my income! I don’t want to retire early.

@SamuelBSR Год назад

So, you stopped investing and spend dividends to supplement you income?

@lilchuck994 Год назад

I just had the same realization about two months ago. I switched a few jobs since I graduated from college, and finally I realized work is a mean for me to just make enough money to retire. I just don’t see myself can love a job, so every dollar I put into investment I am one small step forward to my retirement goal (thought I still need to figure out how much I should save). Since I realized that point, every time I am about to make a purchase I would run that realization in my head and ask myself if it’s really worth the purchase. Definitely helps me save money even more!

@lilchuck994 Год назад

Another point I wanna make is that having a healthy body is the best asset imo. If I stay healthy when I am older, I will have more money allocated to non-health related expenses! 😊

@DividendGrowthInvesting Год назад

so true!!

@Alphahydro Год назад

Coast FIRE sounds like an approach I'm considering. I've been investing more than 25% of my salary for close to a decade, but I'm ready to focus more on living, and let what I've already invested compound.

@DividendGrowthInvesting Год назад

The peace of mind that comes with knowing you reached coast fire is amazing!

@o0usf0o Год назад

Barista fire is what I want! My company is very generous with 401k and I hammer my brokerage…. I look forward to the day where I can stock shelves at a grocery store 3-4 times a week and not have to think about work 24/7 like I do now. That’s my ultimate goal

@unashamedly1776 Год назад

Hopefully you’re going to “stock” grocery shelves, too many “stalkers” nowadays 😂 (Just kidding)

@o0usf0o Год назад

@@unashamedly1776 it was my first job lol. Stalking people doesn’t come with health care benefits, ha!

@unashamedly1776 Год назад

@@o0usf0o Lol, probably negative health benefits if they catch you

@o0usf0o Год назад

@@unashamedly1776 heck! I’d probably get better health care benefits in jail 😂 I kid of course. I have a high stress job with lots of travel so can wait to call it a career!

@unashamedly1776 Год назад

@@o0usf0o Same. I'm always gone, can't wait to spend more time with the family

@VJTI2 24 дня назад

How do people start with dividend investing? Who runs the accounts and how can reinvestments/ income be set? Thank you. Starting out with this.

@thehippiespirit 8 месяцев назад

I think mine is barista fire 🔥

@CalmerThanYouAre1 Год назад

Great content and an excellent summary of the FIRE ladder. This one is getting saved to my “vids for the kids” folder for sure! ✅ I like to think of it as a sprint, jog, walk approach as you progress through life. You need to be saving aggressively and increasing your income as much as possible in your 20s when time is doing the heaviest lifting for you. As you get to your 40s and 50s, hopefully you have hit FI and and throttle back as you see fit depending on family, professional and personal goals. Those goals will be different for everyone, so the retire early part will differ, but I don’t know of a single person who would feel bad being FI at 45.

@DividendGrowthInvesting Год назад

100%!! I really like the sprint, jog, walk way of looking at it. Looking back and this whole process these 7 years.. the days and weeks were long but the years were so short...

@beat1riz 2 месяца назад

I'm a 60% stocks and reits/ 40% bonds and cash Fire.

@DividendGrowthInvesting 2 месяца назад

That will make your overall returns much smoother with so much in Bonds.

@Gunieapower33 Год назад

Is starting at 38 too late for dividend investing even with a 10k portfolio adding 200$ a month. I’m losing my initial confidence . But I don’t want tooo ! I love the drip

@MrSylynce Год назад

It's not too late. Get started, and through the journey, start to optimize your lifestyle and costs. Dividend snowball is a real thing. Your dividend rate will increase surprisingly fast

@greaterdividendscoming 5 месяцев назад

Barista FIRE should be called Uber FIRE because that's what a lot of people do nowadays anyways.

@redenich Год назад

i plan to "retire" at 55 (42 now). I'm an it-consultant for (Cyber) Security here in northern Germany. i work in direct contact with customers by doing workshops or doing the technical stuff myself. I enjoy doing that. in times like today where i have my first day off this year i realize how stressfull this job is and where i ask myself if i can do that til i'm old. So i set an age where i plan to retire. I'm pretty sure doing nothing is not an option ;-) ... So barista it is or will be (i hope) Schöne Grüße an deine Frau aus dem Norden des Landes (Bremen). Hoffe Sie ist wohl auf. Dufften Typen hat Sie sich geangelt. Kuss 😀 Wünsch euch das Beste.

@DividendGrowthInvesting Год назад

Moin! Retiring at 55 is still much earlier than the majority of Germans! Meine Frau kommt aus Kiel. VG aus Texas!

@ReconPro Год назад

@DividendGrowthInvesting Год назад

hi there :)

@19Rinka86 Год назад

Love the friendly reminder guy! He has it (assumingly) figured out 🤩 (it being the key to a happy and fulfilled life)

@DividendGrowthInvesting Год назад

I really enjoy watching him! He has some great videos on instagram!

@djholland5324 Год назад

What category would you put for someone who is in the military?

@DividendGrowthInvesting Год назад

Either Barista or Lean FIRE. The big advantage that you have with the military is if you are in the reserves, you get VERY affordable healthcare.. I nearly decided to join the airforce reserves just to get cheaper healthcare...

@djholland5324 Год назад

@@DividendGrowthInvesting thank you! I’m currently in the Army. Just recently started investing within the last year. Definitely love the content!

@DividendGrowthInvesting Год назад

@@djholland5324 In this case, if you are not living off your investments, you would be considered pursuing regular fire at this point.

@CFH298 Год назад

Don’t forget about the pension especially if you’re active duty. I know reserves sucks and you have to wait until your late 50’s.

@djholland5324 Год назад

@@CFH298 yes I am active duty

@thexandman4590 Месяц назад

24 year old i make 75k a year and i wanna retire at 30-35 where do i start

@nettoyageadriance 10 месяцев назад

Hit Lean FIRE a month ago. Paid off our home and have a 6 figure business. Feels good but making me anzy because I need a challenge. Have enough cash for a down payment on a rental property nearby. Wondering if this is a wise choice. Will pretty much not cash flow but will cover itself and is in an area where growth is guaranteed. Looking for more wisdom.

@fabiGBOtown Год назад

Hey Jake, great video. Im not a member of the fire movement or reddit or anything and I like that you're talking about it. The little I know about it is basically buy vti and chill, so seeing it from a dividend investor POV is really cool to me. By the way, in one of my business I thought about you this week, I said to myself, man, Jake would thrive in this area...

@DividendGrowthInvesting Год назад

Hey Fabi! Thanks man! What part of the US do you live?

@fabiGBOtown Год назад

@@DividendGrowthInvesting hey Jake, im in Florida. Have you made your move or too soon?

@DividendGrowthInvesting Год назад

@@fabiGBOtown moving this next week

@calmman32 Год назад

Hey, I saw that my company had openings for software folks. I am not sure if you (or someone else is interested)

@DividendGrowthInvesting Год назад

Apprecaite you commenting that! Right now I'm focused 100% on this new chapter, but maybe there are others out there interested.

@calmman32 Год назад

@DividendGrowthInvesting sounds good, it is a good community of people

@biggbeefer 2 месяца назад

Is that your portfolio on screen in the beginning? Where did that ~$400,000 windfall come from?

@DividendGrowthInvesting 2 месяца назад

Sold a rental property

@biggbeefer 2 месяца назад

@@DividendGrowthInvestingsweet, great content in this vid!

@1DansBlues Год назад

Man you think having body pains in your 30’s is bad, wait till you hit your 60’s 😂😂😂 I get what your saying. Now in my early 60’s, I never used to think about retirement till now. Being self employed does give me some freedoms that I normally wouldn’t have so freely if I worked for an employer. I enjoy meeting my clients and that is one reason not to retire. But to say I want to work to 85 as my dad did or 82 like my GF did in this business, no I’d rather not. And with each passing year, work gets a little harder as I am a little older. But I do enjoy what I do. With retirement there is always the fear of the unknown. Like, Whether I would have enough to retire on? I live conservatively but I enjoy my lifestyle so I feel I should keep working and earn it while I can, there will come a day when it will be time. So for now, all these FIRE options you state, I’d probably have some sort of hybrid of the types you mentioned. You at least keep me thinking that there will be a solution to what happens. You give me options to ponder. Thanks for your weekly videos.

@DividendGrowthInvesting Год назад

lol I can hear the little violin playing when I read that about the back pain. My dad is in his 70s and he still is doing all the DIY for his rental properties. For him he would be depressed if he sat around and did nothing. In fact, I think it keeps you healthier both physically and mentally when you are active longer.

@MrDarkBM Год назад

I’m on the 30 year plan with the military lol. Hopefully I can reach lean fire at 55 where I’m good with my pension and dividends.

@DividendGrowthInvesting Год назад

55 is still a decade earlier than the "average" retirement in the US.

@MrDarkBM Год назад

@@Big_Jims_American_Dream thanks!

@MrDarkBM Год назад

@@DividendGrowthInvesting true I’ll be 48 with 30 years in so I’ll have a few years before 55 where I’ll have to figure out something to do.

@Rocco1994 11 месяцев назад

Hi Jake! I'm a Canadian investor and was wondering if I could book maybe a 1 on 1 with you, there arent many good growth U.S dividend stocks but i really want to starting putting DGRO into my RRSP, I am 29 Y/o and most of my allocation is in VEQT, VFV, VDY, XEI. VDY and XEI are both great canadian didvidend etfs however they aren't extremely diversified, whereas holding something like VFV AND DGRO will probably bettter suit me longterm as I have a long time horizon. The conversion fee is 1.5% on the buy and 1.5% on the sell, however I'm okay with paying a bt of FX fees for the ability to hold something my DGRO or SCHD. I'll also mention this will be in x tax sheltered account. Anything helps, thanks!

@DividendGrowthInvesting 11 месяцев назад

There is a link in the description to book time with me in my review my pie videos. Sounds like an interesting conversation.

@Rocco1994 11 месяцев назад

@@DividendGrowthInvesting I don’t see a link to book a session, just M1 finance link, seeking alpha premium, and your dividend growth portfolio

@rileythewizard 10 месяцев назад

Thank you for the information!! I’m really new at this, so I was wondering how could someone put 200,000 dollars in a retirement account in a limited time (age 20 to 30 like in the example) if there are rules about how much you can contribute in a year? Am I missing something?

@DividendGrowthInvesting 10 месяцев назад

You could invest 19k or so in a 401k + your employers match and then roll over/convert it into a Roth IRA plus the 6k each year

@TwitchRadio 7 месяцев назад

Fat fire😋😂... stop fat shaming my portfolio😂.. Jk jk.... I guess I'm somewhere between Optimizer and lean, but not sure... my thing is is I want to cover my basic living expenses a pension from the VA (military), I want that money so I can use it for travel and other discretionary things... but I'm not really sure how much my living expenses are going to be down the road in 8 years, guess it depends on when my kids move out and become independent😂

@nikovenag4110 11 месяцев назад

interesting content. Many people in my circle want to retire early at 30-35. And I see more and more people doing this. My doubt is what happens when a critical mass of people want to retire at 30-35 via investing in the stock market? Do you have a take on this? its a huge topic and need to consider many points

@DividendGrowthInvesting 11 месяцев назад

I believe humanity is more interested in spending than saving so I don't think we will ever see this shift entirely in our life times.

@nikovenag4110 11 месяцев назад

@@DividendGrowthInvesting thanks for the reply. I hope not many people start FI since its taking workers from Production lines, so less Production and even more inflation will come. So the FI needs to be really Fat for the current people looking to retire

@MBTIinRealLife 11 месяцев назад

I didn't quite catch the difference between regular, lean and fat. They sound kinda the same. But apparently I'm the lean type. Technically I embarked on my fire journey only recently this year. I'm doing great.

@DividendGrowthInvesting 11 месяцев назад

Fat FIRE you have significantly more left over each month/year that you can spend on discretionary things.

@MBTIinRealLife 11 месяцев назад

@@DividendGrowthInvesting well, in my case I could be spending 50% more pretty easily but I do not allow myself to do so. I spend as much as 20% of my monthly income a month. The rest 80% goes for my FI. It goes without saying that it makes a lot of difference: 60% or 80%. In the long perspective it's 3-4 years difference in how early I'm gonna be FI.

@daralynx2 4 месяца назад

Not sure exactly, but regular probably means no food, car or local entertainment budget. Lean talks a lot about food and a beater car.

@Stark19781 8 месяцев назад

Thank you so much for defining what I’m doing! I’m definitely going for barista fire, I call it delivery fire! I delivered pizzas in college and it was fun. I’ve got about a 300k portfolio that hopefully in a few years will help me retire!

@DividendGrowthInvesting 8 месяцев назад

I've heard of many people who are in a similar boat!

@wastelanddan7388 11 месяцев назад

Coast FIRE is my goal. I'm aggressively investing in my 401k along with my company match. Hoping to land a 100k balance ASAP and then reduce my investment percentage there down to 15%. Currently doing 25%. Then going to aggressively pivot to investing in my dividend portfolio. Hoping by 30 or 35 I'll have a solid nest egg sitting around ready to grow for me by the time I actually retire.

@gungnir3926 7 месяцев назад

future jobs needs to be flexible and most of all it needs to be half physical half sedentary. noone should do the same day in day out, no matter what it is. this is the only thing that is worth using technology and "advancement" for in society. nothing else benefits the population (1% does not count as population). this removes the need for FIRE. Keeps people healthy happy and working. FIRE is unsustainable and a huge net loss, but so is idiotic slavelabour and an increasingly degenerate unhealthy population. unworthy of our ancestors. But for now FIRE makes people more free to stop waiting for the moronic bureacracy to do this nobrainer and do it ourselves.

@DividendGrowthInvesting 7 месяцев назад

I haven't worked a 9-5 all year and it feels amazing! I will never go back to working a 9-5 job ever!