Welcome to The MapleMoney Show, the podcast that helps Canadians improve their personal finances to create lasting financial freedom. I’m your host, Tom Drake, the founder of MapleMoney, where I’ve been writing about all things related to personal finance since 2009.
In case you haven’t heard, there’s a movement creating waves in the world of personal finance, and it’s got a name. The acronym is known as FIRE, and it stands for Financial Independence, Retire Early.
It describes a community of people who have saved enough money to live off of the income that their investments generate. In other words, work has become optional.
What’s interesting, is that many people are achieving financial independence at a very early age, some as early as their 30’s.
Bob Lai is my guest in this week’s episode. Bob is the founder of Tawcan, a popular personal finance blog which specializes on the topic of financial independence, and early retirement.
Bob explains why the FIRE acronym can be misleading, and why financial independence, rather than early retirement, is the more important goal. Bob shares definitions like “Lean FIRE”, and “Fat FIRE” and explains how they differ.
Bob explains that FIRE should never be about deprivation or extreme frugality. Instead, like most things in life, it’s all about balance. In other words, the balance between saving for the future and spending for today.
With RRSP season right around the corner, now’s the time to make sure you have enough room available for your annual contribution. This week’s sponsor, Wealthsimple, has an RRSP calculator that makes it easy! It adjusts for your salary, including any increases you get, plus the contributions already made to other RRSP and employer plans. Find out more at Wealthsimple.
- What is the acronym FIRE all about?
- FIRE: Why the title can be misleading.
- The value of having multiple income streams.
- How savings rate plays a role in achieving financial independence.
- Is the FIRE movement only for high income earners?
- Understanding how “The Gap” works, and how to grow it.
- Achieving financial independence shouldn’t be about deprivation.
- The difference between ‘Lean FIRE’ and ‘Fat FIRE’.