Minimalism, FIRE and tiny apartments!

I have been bite by the FIRE bug few months ago. What is FIRE you ask? Its Financial Independence Retire Early movement – wherein folks in early 20s and 30s work their ass off, save more than 50% of their post-tax income -all with the aim to retire in 10 to 15 years. In order to decide your FIRE number i.e. the saving cushion that is required to retire, you may follow these simple steps.

1. Take your expected annual expenses at retirment.
2. Then multiply the same by 25. Voila! That’s your retirement FIRE number!
3. Now you go really crazy on your savings and live below your means to attain that FIRE number.
4. Invest your savings in index funds or actively managed funds which will give you returns above annual inflation rates.

If you are interested to know how much would you need to save in order to retire in x no of years, check out this beautiful post of Mr. Money Mustache.

It has been 6 months post my MBA since I have started earning again. I have started taking baby steps towards FIRE. I do not have a specific FIRE amount that I have in mind as of now. However, on an average I do manage to save around 10-15% of net monthly income.

To attain FIRE, it requires a lifestyle change which would not necessarily go along the lines of what our friends and family agree to. This is because we might have to downsize to extremes depending on how early and how aggressively the target is set. Establishing your “Why” becomes important. Why do you want to retire early?
Is it because you want to get away from the rat race and live closer to nature?
Or do you want to travel while you still have your youth and energy?
 Or is it just because you want to watch your kids grow peacefully?

For me, I want the ultimate freedom. I do not wish to entirely retire in 10-15 years, but I do want a freedom to choose what I would work on and how much time I would spend working on it. That’s my purpose for embracing FIRE.

In many ways I think attaining FIRE and embracing minimalism goes hand in hand. Minimalism could mean many things for many people. Simply put it is to only keep things which are absolutely necessary for us to survive. This is not restricted to clothes, gadgets or makeup! It can be the house you live, food that you eat, amount of sleep you take every night or even internet data that you consume. It’s a mindset which will not allow you to overspend, overeat or even overthink!

I still have a lot of stuff back home, however, since I have moved out of my house two years ago, I keep my possessions limited to 2 suitcases and 1 laptop bag. I live in a small room and always use public transport. For short trips I book Uber bikes instead of taking auto. Even though sometimes stress makes me order from Zomato or Swiggy multiple times in a month, but I am consciously making efforts to curb that cravings. I do enjoy going to pubs with friends once or twice a month. However being a house-cat myself, I don’t feel like doing that every weekend. And when I do feel that my number of possessions are going up- I follow the Konmari method and de-clutter by keeping stuff that “Spark Joy”.
Konmari is a  Marie Kondo's (Japanese motivational celebrity) method of de-cluttering , which can be applied to organize every aspect of life. Check out her youtube channel here.
If Konmari is a little too dreamy- simply look at all the stuff you own from pure functionality perspective.
Ask these questions.
Does it serve you any purpose?
Have you used it in past one month?
Or in past one year?
Are you full and still eating just because the food is free?
These simple questions can make it easier for you to decide.
I also find this pyramid of 'Buyerarchy of Needs'  helpful in making these decisions.

This pyramid will not only prevent you from gathering whole bunch of stuff that you don’t need but will also help you save ton of money.

Minimalism will make FIRE journey a breeze even after you attain FIRE!

Now coming to my favorite part. Tiny houses. 

This series of Youtube videos published by "Living Big in Tiny House" channel showcase real people with their real tiny houses. Blending aesthetic and utility not only make these houses unique but also some of the houses are built on wheels giving it a nice mobility to shift to any location that the house owner wants.
Now coming to the references made of me being a total house-cat, the importance of a good cozy house is double fold in my life. And the whole concept of tiny houses gels up minimalism and  functionality real well. I might not be able to build a tiny house for myself at this point of time but it surely is on my list in my FIRE life!

To sum this post – earn, save more, invest and embrace minimalism for a happier, healthier and peaceful life!

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