Millennials are a unique and somewhat unlucky bunch. They entered ‘adulthood’ amid a financial and housing crisis. It was hard for most to find a job, and if they did, it wasn’t high paying. Then, they had to weather the COVID-19 pandemic where millions of people lost their jobs again.
When will millennials catch a break?
Here’s the good news. They haven’t let any of this stop them. They are still the largest proponents of the FIRE Movement (Financially Independent, Retire Early) and continue finding ways to make it happen, including investing in turkey real estate with Roofstock Marketplace.
What Is the FIRE Movement?
FIRE stands for Financially Independent, Retire Early. It can look many different ways, but overall, people filing the movement save up to 75% of their income so they can retire in their 30s or early 40s.
People filing the FIRE Movement live a frugal life and maximize their income. But people who follow the FIRE Movement don’t necessarily travel the world or sit back and do nothing. Instead, they retire from their 9 to 5 jobs and do something they enjoy, whether that means opening their own business, investing in turnkey real estate, or working in an industry that may not support their lifestyle. Still, they do it for the ‘fun’ and not the money.
There are several ways to do the FIRE Movement, but millennials should choose the best method for them. It doesn’t mean pure sacrifice and living a boring life until you hit retirement age. There are many ways to do FIRE that cater to your lifestyle.
How Does the FIRE Movement Work?
For the FIRE Movement to work, you’ll follow a few steps:
Create a plan – What do you want to do when you retire? Will you work full-time, part-time, or not at all? Will you move or stay put? Will your cost of living remain the same or change? Your answers to these questions will determine how much you must save and how early you can retire.
Cut down your spending – To follow FIRE, you must live a frugal life to reach your goals. Look at your budget and see where you can cut back so you can increase your savings. You don’t have to sacrifice everything, but to retire early, you’ll need to save aggressively.
Avoid debt – Don’t use credit cards unless you can pay them off in full each month. Credit card debt reduces your chances of saving aggressively and retiring early. Ideally, you shouldn’t have any debt when you retire.
Save as much as possible – Work your way up to save as much as 75% of your income. If you have two incomes, you could make it, so you live off one spouse’s income and save/invest the other spouse’s income. Figure out a structure that works for you.
Invest aggressively – Let your money work for you by investing aggressively. Diversify your investments, so you don’t risk everything, but the more aggressively you invest, the faster your money will grow. Consider diversifying your portfolio with real estate bought on the Roofstock Marketplace.
The FIRE Movement point is to be out of debt so you can live off what you’ve saved and not dip into your retirement funds. Many people following FIRE have NO debt, including a mortgage, while others have some debt, such as a small mortgage and/or car payment, but no credit card debt.
Types Of FIRE
Everyone has a different definition of the FIRE Movement. One answer isn’t better than the other, but there are three standard ways to use FIRE.
These are for the extremists – the people who don’t mind sacrificing a lot, leaving a ‘lean’ life now and in retirement. In LeanFIRE, you limit your expenses as much as possible, only spending on the absolute necessities. In exchange, most people retire very early.
This method is for those who don’t like sacrificing but want to retire early. People using FatFIRE must save more money to support their lifestyle now and in retirement. It may take longer to retire, but you’ll be able to live the lifestyle you desire.
If you want to retire early from your 9 to 5 job but plan to do something else afterward, you are part of the BaristaFIRE movement. Whether you work part-time, go after your dream job, or start your own business, you are part of this movement.
Figure out which method works best for you. Are you comfortable with serious sacrifice, or do you need a little ‘wiggle room’ to have some fun? There’s no right or wrong way to do it.
Who Is The FIRE Movement For?
The FIRE Movement is for anyone who wants to quit the rat race early, rather than waiting until age 65 to retire.
You don’t have to be rich or want to do nothing after retiring. Anyone who doesn’t mind living a frugal life, saving most of their income, and focusing on the future should consider the FIRE Movement.
The idea is that you pay off your debts and save enough money for retirement that can support you for 40 – 50 years rather than 20 – 30 years.
10 Things to Learn From the FIRE Movement
1. Anyone Can Retire Early
You don’t have to be rich or be over 60 years old to retire. If you want to enjoy life now and retire before you hit your golden years, you can. Anyone who can save, pay off their debts, and live frugally can enjoy life to the fullest.
2. You Don’t Have To Quit Working To Fire
You can do the FIRE Movement however you want. You can even work full-time still. The idea is that you aren’t working to pay your debts – you should be out of debt or close to it before FIRE. You are then free to do what you want, enjoying life, and that can mean enjoying what you do for a living, too.
3. Your Spending Matters More Than Your Income
Income is important, but how much you spend matters more. If you make only a little money each year, but you spend even less, you could still make FIRE work. It comes down to living well below your means so you can save enough money to leave the rat race early.
4. You Can Invest in Real Estate as a Part of Fire
Investing in real estate, including turnkey real estate, either before you retire or after is a great way to supplement your income. Investing in real estate before you retire can help you increase your income and decrease your expenses, getting you out of debt faster. Continuing to invest in real estate after you retire can supplement your retirement income.
5. Saving Money Should Come First, Not Last
Too many people save money after they pay their bills and live life. This often leaves less than is necessary to get out of debt and prepare for retirement. The FIRE Movement forces you to save first and spend last.
6. Tracking Your Spending Is Important
Setting a budget is one thing, but tracking your spending is even better. If you don’t know how much money you spend or where you spend it, you can’t live a frugal life. Track your spending, see where you overspend, and revamp your habits so you can reach your FIRE goals.
7. There Are Other Ways To Entertain Yourself
Entertaining yourself doesn’t mean going broke. When you use the FIRE Movement, you learn to get creative with your spending. You can have a social life and stay within your budget. It’s amazing what you can do when you have a serious goal.
8. You Can Learn To Do Your Own Repairs
Paying someone to do repairs or home renovations is convenient but often a waste of money. When you’re frugal, you’ll find ways to do repairs and renovations yourself, saving the money for your retirement rather than paying someone else.
9. You Can Travel and Save Money
You don’t have to give up your dreams of traveling the world if you want to FIRE. There are plenty of ways to travel frugally and have fun. Staying at Airbnb instead of hotels, driving instead of flying, and finding the ‘free tourist attractions’ are just a few simple ways to enjoy traveling while saving money.
10. Working Hard Now Pays Off in the Future
It may feel like a lot of work and sacrifice right now, but it pays off in the future. Finding ways to increase your income now without necessarily working harder is even better. Investing in real estate is one way to make this happen. Real estate is a passive investment that brings in monthly cash flow, helping you achieve your goals.
How Millennials Can Retire Early with Turnkey Real Estate Investing
Millions of millennials are using turnkey real estate to retire early. While finding turnkey real estate used to be time-consuming and frustrating, one platform made it easier than ever. Roofstock Marketplace brings together buyers and sellers of turnkey properties, making it easy to become a real estate investor no matter your financial status.
Roofstock makes investing in real estate affordable and convenient. They do all the legwork, leaving only the decision-making up to you.
Millennials realize the following benefits of investing with Roofstock Marketplace:
Invest in long distance properties – Millennials living in a high-cost area are often priced out of rental homes in their area, leaving them without the ability to invest in real estate. Roofstock provides listings from all over the United States, making it easy to invest in them.
Vets all properties – Roofstock properties are certified, giving buyers peace of mind when buying investment properties sight unseen. Professionals ensure the home is in good condition, replace or repair any issues, and include a 1-year service warranty in the sale.
Homes have renters – Many investment homeowners have trouble finding renters. They either don’t know where to market the home or buy a home in an undesirable rental market. Roofstock sells homes already outfitted with tenants, so millennials have cash flow from day one.
Property management is available – Buying a home across the country means not running over there when something is wrong. Roofstock provides property management services (for a fee), taking the responsibility off your shoulders. You just sit back and collect the rent.
Investing in turnkey real estate can be the start of the FIRE Movement for millennials. If you feel stuck in your employment or like your income won’t increase enough, investing in real estate can provide the income you need to get you closer to your FIRE goals.
Saving the money made from the rental properties and using the home’s equity to buy more rental properties is a great way to build a solid portfolio that helps you reach your goal to retire early.
The Number of Millennials Using Turnkey Real Estate To FIRE Is Increasing
Turnkey real estate from Roofstock could be the missing piece more millennials needed to retire early. If you’re ready to leave your professional and do something you love or just build up your real estate portfolio, check out Roofstock Marketplace and start your real estate portfolio today.
Read more about Roofstock: Roofstock Review
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