๐๐๐Imagine waking up each day without financial stress, knowing that my investments are working for me while I pursue my passions, travel or simply enjoy a slower pace of life. The Financial Independence Retire Early (FIRE) movement isn't just about escaping the 9 to 5 grind. It is about reclaiming my time and designing a life on my own terms.
Singapore's high cost of living might make FIRE seem like a distant dream but with the right investment strategy and disciplined savings, retiring early can be achieved.
This is my plan to help me achieve FIRE and retiring comfortably in Singapore.
Step 1 - Define My Monthly Retirement Budget
I need to estimate my expected expenses. These include housing, food, healthcare, transportation as well as leisure and travel.
I believe I will need about SGD 3000 per month.
Step 2: Calculate My FIRE Savings Goal
The 4% rule requires me to save 25 times my annual expenses.
Since I aim for SGD 3,000 per month (SGD 36,000) per year, I would need SGD 900,000 in investments to sustain my retirement.
Step 3 - Build My Investment Strategy
Since FIRE relies on passive income, I would look at Index Funds and ETFs which are low cost and diversified for long term growth. I would also consider Real Estate where rental income or capital appreciation can support my retirement. Dividends are another source of passive income derived from good dividend stocks to provide me with a regular cash flow. Side hustles such as freelance work or passion projects can give me additional income too.
Step 4 - Maximise My Savings and Cut Expenses
To accelerate my FIRE journey, I intend to increase my savings rate to target at least 40% or more of my income. I would reduce unnecessary expenses such as buying luxury goods.
Concluding Thoughts
Achieving FIRE in Singapore isn't just a dream. It is a strategic choice that requires discipline, smart investing and a commitment to my long term financial growth.
By building a diversified portfolio, maximising savings and leveraging passive income, I can create a future where work is optional and a life that is truly mine to design. Every step that I take today will bring me closer to financial freedom.
Financial Freedom isn't just about retiring early. It is really about living life to the fullest. It is about waking up every day with the ultimate freedom to pursue my passions, spend time with loved ones and explore the world without any financial stress holding me back. That is what I call really living life!
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