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Barney Whiter's parents bought his house when he began high school in the United Kingdom in 1981.
"They did the clbadic British," he says, "big house, big mortgage" .
Shortly afterwards, a sharp recession occurred and interest rates climbed to 17%, so their parents had to reduce their expenses to make a crippling mortgage payments : days of vacation they were canceled
Whiter's father stopped buying beer and made his own. And the man's attitude towards money has changed forever: "It was scary to have a lot of money in the bank" he says.
He spent his adult life making sure that he would not end up in the situation that was theirs his parents.
Barney Whiter is a graduate in economics and has a background in accountancy, a profession he has practiced as an expert in monetary language and has worked in finance for 20 years.
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But while his salary was 12,500 pounds ($ 16,000) he had earned during his studies, his lifestyle had not increased
For more than two decades, Whiter was saving at least half of his salary every month for his retirement and any bonus that he would earn would disappear immediately.
I drove my bike to the office of read He took the subway, in addition to reducing his consumption of alcohol.
Whiter, now 48, managed to save enough to allow to retire to 43. [19659002] But it was only a year before his retirement that he met Money Moustache, a blog written by Canadian Peter Adeney, a celebrity among young retirees.
Whiter realized that he had unconsciously belonged to it. It's a movement that is gaining popularity among the youngest workers in the world.
He calls FIRE: financial independence, early retirement, or "financial independence in Spanish", early retirement. "
Light a Fire
The basic model looks pretty much like this: the participants live as austere as possible, saving half your income or more during your between 20 and 40.
The goal is to retire before the age of 50.
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] Many FIRE enthusiasts do not intend to spend their money playing cards or cruising.
S e concerns financial independence : the objective is to have a sufficient savings fund
They can therefore do more than look for income and promotions in a job in a company, or worry about the granting of a large mortgage to the bank.
And bie Since these ideas have existed for some time, the communities of this line have allowed the FIRE movement to truly consolidate itself over the last decade.
Currently, thousands of people around the world subscribe to podcasts (one of the most popular). called Firedrill), blogs and participates in discussion forums on how to live an austere life.
Not like the others
These communities of young people obsessed with their retirement savings, they contradict a trend: most of the millennials n ' do not save enough for retirement.
The millennials in the United Kingdom save on average 4.6% of their salary for retirement. L os Proponents of the FIRE movement allocate at least half of their income, while spending as little as possible.
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Craig Curelop, a 25-year-old financial badyst, follows the philosophy of [19659006] "everything, does not use anything."
He owns a car, but he never drives it, but he rents it to a place called Turo and uses a bicycle instead: "I I did it and I earned two hundred more dollars a month, "he says.
This Denver, US resident, rented his bedroom on Airbnb and was sleeping in the living room.
He was saving so much that he could buy another house in June of this year (he bought his first duplex in April 2017) where he lives in one room and rents the others.
"At the moment I am [19459] 006] saving between 3,000 and 4,000 USD a month "he declared.
" I have probably saved between $ 60,000 and $ 70,000 in the 18 months since I started my first home income ",
This way of life is not immune to criticism because indicates that certain high savings targets are not attainable .
"They have many positive aspects and some good roots in financial planning, but I think it's an extreme version that does not necessarily fit everyone," says Damien Fahy. financial planning consultant based in London.
Mathematics of Life
Another controversial aspect of the FIRE movement is: how much money does it take to retire at age 30 or 40?
Critics say FIRE greatly underestimates what they need now
Many members of the movement (though not all) follow the 4% rule.
If a person removes only 4% of an investment, his income will consist mainly of interest and dividends, and not
The rule of thumb is as follows: save 25 times the necessary expenditure : for example, to spend $ 39,000 a year, he would need $ 771,000.
This rule has its flaws, especially when it is applied to young people. It is generally used for those retiring at age 60 and who will probably no longer need money for more than 30 years.
Mathematics does not give, says Holly Mackay, founder of the website Silver Boring: "If you retire to 30 years, you could still live 70 years, I think that there is a little naivety. "
Cut, Not Cut
Gwen Merz is 28 years old and has an badet of $ 200,000 (mainly property, shares and money).
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The American resigned from her position on March 27 and now presents the Firedrill podcast: "I'm not retired, I still have to work, but I'm free to choose something I really appreciate and I may not pay much . "
She hopes her investments will provide her with a vital income every time she decides to stop working. And for her, FIRE is not just about finances, but about community and camaraderie.
"There are more people to go out with and they are not sorry to own a car for 13 years," he says. I would love to have a Nintendo switch, but I think it's useless. She also eats less than before and does not travel as often.
You should be able to live better, but that does not mean that you spend a lot of money, says Gwen Merz
Advises to reduce unnecessary expenses up to the point of unease, Then go to the next level : "You should be able to live better, but that does not mean you spend a lot of money."
Whiter agrees. "It's not necessary to go to an expensive downtown bar," he explains.
"This has no sense of miserable living for 20 years, but of being able to living miserably for another 20 years after work, "he adds.
Working in Freedom
Although the" RE "part of the FIRE movement takes his retirement earlier, the goal of Merz and Whiter is not to give up their jobs and do nothing before let them die.
"We are not destined to drink and to drink Mai Tais all day, "said Merz.
" Human beings have an intrinsic need to work. We must feel like valuable members of society, and that is not going to stop because you have a amount of money in the bank ",
On the contrary, it gives them the opportunity to do whatever they want.
"You have to live it to understand how powerful it is," says White.
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