How to Plan to Retire Early as a Couple
Early retirement may feel far off or seemingly unattainable, but just like anything else, it can be broken down and made into smaller, more feasible steps—especially if you're retirement-planning as a team of two.
The FIRE movement (Financial Independence, Retire Early) is based on the idea that if you aggressively save and invest 50 to 75 percent of your income, you can retire early and become financially independent within 10 or so years. The method stresses frugality, looking for extra income, and making your extra money work for you. FIRE picked up in popularity in the early 2010s with financial bloggers such as Mr. Money Mustache and several online forums, communities, and books sharing information on how to game an early retirement. In 2020, we even saw the emergence of dating sites and apps specifically geared towards millennials looking to retire early with a likeminded partner.
FIRE, as a movement, runs in similar circles with tiny homes, do-it-yourself investing, and minimalism, to name a few. It seems to take the KonMari method and apply it to your financial lifestyle, where less truly becomes more.
With less frivolous spending and less buying of junk, plenty of couples are able to save more, invest more, and be more present with what they already have. The FIRE philosophies allow couples to look ahead, together, to a not-so-distant future where retiring early is a very real possibility.
Here's how to start.