Retirement is a problem that everyone faces, but different people's understanding and expectations of retirement may vary greatly. In recent years, a lifestyle called "fire" has become more and more popular among young people, and its full name is "financial independence retire early". This means that some young people, after saving enough money, choose to retire from the job to pursue their true passion, or enjoy more free time. So why do this generation of young people want to retire early?How did they do it?What impact do their choices have on society?
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According to some survey reports and expert analysis, the main reasons why young people want to retire early are as follows:
One is to get rid of the existing way of working and seek the true love of the heart. In today's society, work pressure is increasing, competition is becoming more and more fierce, and many young people have to work hard for promotions and salary increases, even sacrificing their health and family. However, they don't necessarily like their work or find it meaningful. Therefore, they are eager to quit this state of "involution" when they have the ability to do things that they are really interested in, such as traveling, writing, painting, volunteering, etc. They believe that such a life is valuable and meaningful.
The second is to stay away from the involution consumption ecology and get rid of the coercion of material desires. Under the influence of consumerism, many young people have increased their consumption levels, but this does not necessarily lead to more happiness. Instead, they may be caught in a vicious cycle of "the more they earn, the more they spend, the more they have to earn", and they have to continue to work hard in order to maintain a high standard of living. However, they also realize that material desires are endless, and many consumption behaviors are influenced and induced by society, rather than real needs. As a result, they began to try to gain more freedom and satisfaction by retiring early, reducing unnecessary consumption and living a simpler and frugal life.
Third, pension is a rigid need, and it is better to plan ahead than to wait passively. With the intensification of population aging, the problem of old-age care is becoming more and more prominent, and the national old-age security system is also facing tremendous pressure. Although most people can receive a pension from the state after retirement, for many people, this pension can only maintain a basic life, and it is difficult to ensure their quality of life and medical needs. Moreover, with the introduction of the policy of delaying retirement, many people may have to wait until the age of 60 or even later to retire, which is a physical and psychological test. Therefore, some young people do not want to rely on the state's old-age security, nor do they want to wait until they are old to retire, but plan their retirement life in advance, accumulate enough pensions for themselves through reasonable financial management and investment, and achieve financial freedom and independent choice.
So, how do young people achieve early retirement?Based on some cases and experience, they mainly adopted the following methods:
The first is to set a retirement target amount in advance according to the ideal standard of living. Different people have different expectations for life after retirement, some people want to live a luxurious life, some people want to live a simple life, some people want to travel, and some people want to study Xi. Therefore, they need to calculate how much money they need to save to achieve early retirement based on their living needs and consumption level. There is a common method of the "4% rule", that is, to multiply the annual living expenses by 25 as the goal of saving, and after achieving the 25 times the goal, and then through follow-up financial management and investment, strive for an annual return on investment of about 4%, and continue to obtain income, so as to maintain the life after retirement.
The second is to formulate corresponding financial plans to reduce unnecessary expenditures. To achieve early retirement, it is not enough to rely on work income alone, but also to make money through financial management and investment. Therefore, they need to choose appropriate financial products and investment methods according to their risk appetite and return expectations, such as real estate, bonds, etc., and use the effect of compound interest to accelerate money saving and appreciation. At the same time, they also need to control their desire to consume, avoid unnecessary waste and luxury, and rationally arrange their income and expenditure through bookkeeping and budgeting, so as to improve the savings rate and asset allocation efficiency.
The third is to use part-time work to effectively increase household savings. Retiring early doesn't mean doing nothing, but having more time and freedom to do what you love. Therefore, many people who retire early will choose some part-time jobs, such as freelancing, part-time, entrepreneurship, etc., which can not only meet their interests and hobbies, but also expand their social circle, and at the same time earn some extra income, increase family savings, and provide more security and possibilities for life after retirement.
Early retirement is a way of life that has a certain impact on both individuals and society. For individuals, the advantage of early retirement is that they can get rid of the pressure and constraints of work, realize self-worth and self-realization, and enjoy more freedom and happiness. However, there are also some risks and challenges associated with early retirement, such as the possibility of facing problems such as insufficient funds, social disconnection, boredom in life, and declining health, which require adequate psychological and material preparation.