If one does not achieve financial independence on time, then it is difficult to retire early.
Financial analysts have always stressed attaining financial independence at a young age, especially those youngsters in their 20s who are working professionals in various industries. Financial independence is key to early retirement and the concepts are inter-related to each other. If one does not achieve financial independence on time, then it is difficult to retire early. To provide a comprehensive guide on understanding financial independence for early retirement, Chartered Accountant (CA) Rachana Ranade, recently addressed a session in Thrive 2021– an event organised by stocks and mutual funds investments platform Groww.
According to CA Rachana, financial independence means that instead of us working for money, money should work for us. She explained that a movement known as ‘FIRE’ predominantly started in the US, which comprises of two basic concepts – financial independence and early retirement. FIRE is an abbreviation, in which ‘F’ stands for financial, ‘I’ stands for independence, ‘R’ stands for retire, and ‘E’ stands for early. (Also Read: Balancing Income And Expenses: How To Create A Monthly Budget And Stick To It )