My first blog after my intro post. Thanks for the warm welcome, hope you enjoy this article. Today I'll discuss about the rationale behind my handle 
Financial Independence Retire Early (FIRE)
Financial Independence Retire Early (FIRE) is a concept coined in 1992 best-selling book Your Money or Your Life by Vicki Robin and Joe Dominguez. It aims to allow people to attain financial independence through initial years of savings and investments, then retire early in life. Much faster than the traditional retirement plans. You can achieve FIRE in yours 40s and 30s too.
My handle
Retirement
Retirement traditionally means leaving a job at the predetermined age of 60 or so. According to dictionary, retirement also means 'the act of stop working permanently'. No! that's not true. The new definition is to start doing things which you love to do without worrying about financial situation. It could be pursuing your hobby, spending more time with family, travel, write/read books, starting a new business, join an non-profit org, public service etc. You don't have to depend on your job for money. This cannot happen without Financial freedom a.k.a Financial Independence
There are many people in this world who have achieved financial independence in their 30s and 40s, it is possible by everyone if you desire to and believe in your plans. Change the perspective of retirement!
Financial Independence
Its not hard to decipher the topic. Literally means financial freedom, where you would not worry about making money and focus on your life. Its easy to say than done. It will be hard to achieve unless you inherit massive wealth from family or win a billion dollar lottery.
You need to plan meticulously to achieve Financial Independence. If done correctly then you can achieve it within 5-10 years. It also depends on your current age, responsibilities and lifestyle you want to lead.
First and foremost thing in the plan is to understand your current financial condition, this means your current income, expenses, needs and obligations.
Goal
Without a destination, it makes no sense to travel. Unless you are clear about your destination, nothing else can be done. If someone wants to travel without a destination, its hard to decide even which mode of transportation one has to take, what kind of clothes to pack, for how many days you need to pack etc. Fixing a destination, helps in putting up a plan and execute it.
Imagine a person decided to travel but has no clear destination, then how could you suggest which plane to take or drive car. If a person wants to travel to Paris from New Delhi then its clear that he/she needs to take a flight and local cab, book hotel, pack clothes according to weather. If someone wants to travel from New Delhi to Agra, then you might suggest various options of taking train or bus or car, so you see the options changes as we change the destination. So its important to know your destination in a journey. The route can be many but the destination should be one. Similarly, everything in life would be easier if its guided by some set of GOALS.
The goals which require substantial financial support much be listed, it could be about taking up higher education in foreign university, marriage, world tour etc. Write down the goals and the expense it could incur.
Steps to attain Financial Independence
Few initial steps to start on the journey of Financial Independence.
Step 1: Understand your current financial situation. Write down the current income, expense, assets(investments, gold) and liabilities(loans, credit card bills)
Step 2: Calculate your yearly expense. Monthly expense multiplied by 12. Calculate how much money you need while your retire, inflation adjusted amount. This will also help in calculating the insurance cover you require.
Step 3: Plan to clear your liabilities, debt.
Step 4: Create an emergency fund. It should be 6x-12x of your monthly expense. You can start with as low as $100, then keep adding to it until you reach 6x of monthly expense. This is important step and provides confidence in future.
Step 5: Calculate and buy adequate term insurance and health insurance which will protect you and your family. Very important step again.
These are the most important initial 5 steps you need to do before starting on the journey of Financial Independence Retire Early (FIRE). This is the foundation for anyone's financial well being.
In future posts, I'll share further more steps which will help in this journey of FIRE.