FIRE-Bewegung: Wer finanziell frei werden will, sollte auf diese sechs Punkte achten

Title: FIRE Movement: Key Points to Financial Independence

In order to become financially independent, there are six crucial aspects to keep in mind. The story of Rob and Emma, a Romanian-Swiss couple, serves as an example of how two people can achieve this goal.

Rob and Emma met while studying in Stuttgart, where they both worked. At that time, they earned around 6,000 Euros gross annually, which was not a lavish sum. In 2009, after the global financial crisis, they purchased their first apartment in Stuttgart, initially for personal use. Over time, they acquired five more apartments, which have more than doubled in value since then.

At the age of 30, they achieved financial independence and moved to Romania, where they now live with their two children. Rob and Emma are part of the FIRE movement (Financial Independence, Retire Early). This movement is for individuals who aim to retire early by saving a lot of money in their youth and investing in real estate and ETFs.

Although high income from investments can sustain a lifestyle, inflation and market downturns make it increasingly difficult. Many FIRE followers decide to abandon the retirement goal at a younger age, like Oliver Noelting, who put off retirement indefinitely after starting a family. Other common mistakes to avoid include:

1. Insufficient budget allocation: Financial independence requires proper planning, especially regarding savings. The 4% rule, derived from the Trinity Study, suggests that one needs 25 times their annual expenses to retire comfortably. However, Rob advises setting aside a larger safety margin in case of market downturns.

2. Underestimating living costs: FIRE followers must accurately estimate both their income and expenses. Rob and Emma learned this the hard way when they bought a 100-year-old property in Romania for 180,000 Euros. Unexpected renovation costs in energy efficiency and insulation led to higher expenses than anticipated.

3. Inflation undervaluation: Inflation in Romania and other parts of the Eurozone has risen, causing prices for everyday items like food and energy to increase. Rob acknowledges that their family's expenses have risen from about 35,000 Euros to nearly 50,000 Euros annually without changing their standard of living.

By addressing these six key points, individuals can navigate the path to financial independence more effectively, as demonstrated by the success of Rob and Emma in the FIRE movement.