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How to use F.I.R.E method to retire early?

We all dream of the day when we can finally retire and enjoy our golden years. But for many of us, that day seems like a distant dream. We’re stuck in the rat race, working long hours and never seem to be able to get ahead.

The good news is that it doesn’t have to be this way. There is a way to retire early, and it’s called the F.I.R.E method.

What is FIRE movement?
What is the FIRE movement?

The FIRE movement is a financial movement that is based on the idea of achieving financial independence and getting retired early.

The acronym “FIRE” stands for “financial independence, retire early”.

It started in the early 1990s with the publication of the book ‘Your Money or Your Life’ by two financial gurus Vicki Robin and Joe Dominguez. The book popularized the idea of financial independence and retirement planning.

In recent years, the FIRE movement has gained traction online, with a number of personal finance bloggers and podcasters sharing their stories and tips for achieving financial independence.

How to achieve FIRE?
How to achieve FIRE?

The FIRE method is a simple way to retire early, but it does require discipline and commitment. If you are willing to follow the right steps, you can achieve your goal of retiring early.

1. Increase your savings

The more you increase your income and savings, the quicker you can reach your FIRE goals.

At least invest 50-70% of your entire income.

When you have more money coming in, you can put more of it towards savings and investments, which can help you reach FIRE quicker. It also allows for a greater margin of error and more room to maneuver if something unexpected comes up.

2. Invest wisely

So, where do you put your money to grow?

When you invest, you are essentially putting your money into something that has the potential to grow over time. Keeping inflation and taxation in mind, you should choose investment options that at least save your capital.

Returns must be greater than inflation. Otherwise, you will lose your money instead of growing it.

There are a few things to keep in mind when investing, such as diversifying your investments, choosing investments that align with your risk tolerance, and monitoring your investments regularly. By doing these things, you can help ensure that your investments are working for you and help you reach your FIRE goals.

3. Live frugally

Living frugally in your 20s and 30s allows you to save a significant amount of money.

Some ways to live frugally include-

  • Avoiding unnecessary expenses
  • Minimizing housing costs
  • Cutting back on transportation costs
  • Reducing your food budget
  • Saving on entertainment

If you need some ideas about what to read next, here they are:

Calculate your FIRE number
Calculate your FIRE number

FIRE number is the amount of money you need to have invested to cover your living expenses and quit working for money. Your fire number depends on how luxurious a life you want to live after your retirement.

To calculate your FIRE number, you need to know your estimated retirement expenses.

4% Rule

The 4% Rule is a study done by Trinity University. Trinity came up with the rule by analyzing the retirement portfolio of people based on different investment options.

The study showed an investment portfolio would have money in them after 30 years if an investor pulled out 4% or 5% from their portfolio every year. That is also known as the withdrawal rate.

According to the 4% Rule, Your fire number = Your yearly expenses * 25. If you have 25 times your yearly expenses in your investment portfolio, you can FIRE yourself.

Challenges for FIRE
Challenges for FIRE

Your FIRE number may look promising in the excel sheet, but the problems come while executing it.

Let’s discuss the challenges you should be prepared for.

1. Living frugally is hard

Living frugally to save the most amount of your income is quite tough at times. It becomes harder when you have kids. To tackle this, either you need to increase your income or invest where you can get a higher rate of returns.

2. Inflation, recession, and ROI

As the inflation rate is hitting the highest number in the last 40 years, the cost of living is also increasing drastically. Many fear the US economy is in recession already. The return on investment you got from the stock market is not enough to catch inflation and grow your money for retirement.

How Secvolt helps you to reach FIRE?
How Secvolt helps you to reach FIRE?

While the market is down and the inflation rates are touching the sky, Secvolt is providing 12 times more returns than banks in a year. It is recession-proof as it analysis the historical data of the last 40 years to grow your wealth.

Secvolt is a quant-based wealth management firm that specializes in people achieving their FIRE goals. You get up to 60% of returns on your money with 0 risks.

Check out secvolt.com to know more.

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Ashish Verma

Ashish Verma is the founder and CTO of Secvolt, with close to 10 years of experience in the IT industry. He has been the technical backbone of the company and has worked tirelessly to make the technical infrastructure robust. He is a passionate entrepreneur who generates solutions that have the potential to bring change.

In order to ease the client’s interaction with Secvolt, he has strived to develop the business’s technological foundation and establish a user-friendly platform. Ashish has also contributed substantially to smoothening the company’s administration and ensuring that there are no lacunae in the broad structure of the organization. 

Early Years

Coming from a middle-class family, he was aware of the problems that people faced while using technology. He sought to create something that was simple to use yet had a powerful effect. As he studied computer science, he became eager to offer a solution to real issues. He began his professional career at Amdocs, where he gained expertise in client management while catering to more than 20 clients. Later, he moved to Citicorp, where he had exposure to the investment industry. His time at Amdocs and Citi enabled him to produce high-standard, efficient, and scalable technical infrastructure.

He left corporate jobs for his startup because he was passionate about working on the concept of a smart city platform. He expanded the concept internationally and even collaborated with Global Dignity-Kuwait. Things didn’t work out for him the first time. He states, “My failures didn’t stop me from experimenting and trying new things.” He rose from the ashes like a phoenix and founded FewerClicks, an End to End IT solution company.

He worked on the creation of Solster Finance, a decentralized financial platform based on the Solana blockchain. He created this platform single-handedly which has helped the team raise a $1M investment and a revenue of more than $5M within 6 months of launching. 

He has previously worked on many blockchain technologies and cryptocurrency ventures, which include Decentralized Finance Applications (Defi), Decentralized Applications (Dapps), File Contracts (SIA, record-keeper), Smart Contracts (rust, solidity), and NFT Development. His experience and effective communication have helped many team members understand Secvolt effectively and the underlying technology it is powered by.

He possesses the ideal combination of strategic thinking and excellent business insight. He is responsible for formulating technical aspects of the company’s strategy to guarantee alignment with business objectives. With his drive to experiment with new technologies, he has helped Secvolt achieve a competitive edge. Being in charge, Ashish never holds back in encouraging the different departments to make profitable use of technology, helping to grow as an unstoppable team at Secvolt!

Hanif Shaikh

Hanif Shaikh is the founder and CMO of Secvolt, with over 8 years of experience in the industry. He plays a crucial role when it comes to the growth of Secvolt. Since the beginning, he has acted as a mentor for each and every employee of the company, and he makes an effort to be accessible to his staff anytime they need him. 

Hanif first entered the Blockchain and Crypto world in 2016, and nothing has stopped him since. He views blockchain as a transparent platform that provides authority and accountability back to the people. He consistently believes that “overcommunication is better than miscommunication.” He has lived by this motto with his staff, clients, and networks.

Early Years

Hailing from Gujrat, a state in India, he is following his dream to contribute to making this world a better place. In the process, he has struggled, made some mistakes, and learned lessons from those mistakes to achieve success in life. His entrepreneurial attitude dates back to his childhood when he learned from his father’s business and aspired to have it all. He came from a humble background and had ambitions to succeed in life.

He has developed two successful businesses from scratch, and in the process, he has inspired young people to start their own businesses. He was an integral part of the Quora Mumbai Meetups and helped it become a great success in a short period of time. Later, he began organizing meetups to raise awareness about blockchain, cryptocurrencies, and their applications. He also shared his knowledge of ICOs, highlighted reputable ICOs, and established a small cryptocurrency community on WhatsApp groups.

He chose to go on a Blockchain Tour in India in 2019 and met some fascinating people. Throughout his journey, he has been able to build an extensive and robust network that has aided Secvolt’s growth. Because of his expertise and understanding of the Crypto Industry, he has been featured on several news channels and has advised the youth on the subject.

He is in charge of the company’s marketing operations and is responsible for developing its marketing strategy and vision. He oversees a group of passionate marketing professionals and plans promotional strategies with the goal of making  Secvolt a global brand. 

He is a perfect blend of a practical attitude and innovative business acumen. He believes in the ability of individuals to perform exceptionally well when given an environment to experiment and explore their passions; a culture that he has built at Secvolt.

Divakar Choudhary

Divakar Choudhary is the founder and CEO of Secvolt who has been trading for more than six years now. He started the business in 2018 with the conviction that if anybody could dominate the market, it was him. He poured all of himself into the business and turned Secvolt into a market-beating machine.

Divakar developed the fundamental quant models that perform risk management and capture alpha using his skills from the previous organization and his time spent in the market. In order to make the system effective, he backtested risk mitigation algorithms and worked on them for more than 4 years to produce results.

Early Years

He began his crypto journey in 2013 after getting his first gaming Laptop and melded in with the Blockchain community like sunbeams on the ocean. He created many YouTube channels at the age of 15 and businesses by the time he was 17. Technology has always piqued Divakar’s interest. He endeavored and succeeded at freelancing in his effort to achieve financial independence. However, he soon realized that freelancing would always keep him in the rat race, and the only way out would be to build a machine yielding generational wealth.

Soon, he started trading using his own capital but suffered a loss in the market. He says, “95% of people lose money & the rest 5% make money from the loss of those 95%.” He then began working on an effective technique to be included in this 5% after losing part of his own assets during the early stages of trading. He began evaluating quant strategies using statistical models.

With his methodology, he once produced a 20% ROI in a single month. With the zeal of creating something exceptional, he borrowed money from friends and family and generated decent returns for them using primitive quant models. Month after month, the system’s efficiency and the competence of the man behind it allowed for excellent market returns.

In the beginning, Divakar worked on his laptop for over 18 hours. It took every ounce of his energy as he executed about 530+ deals daily for 4 years to create this company from the ground up. In 2021, he increased his volume by 827%, trading a total of $52 million and hitting a single account.

In his words-

“What does becoming “THAT” GUY mean to you? Who did you need when you were young? Be that person!”

He is a perfect example of someone who followed his passion and made a fortune from it! He dreamt of creating generational wealth as a youngster, envisioned it as an adult, and is now making it a reality with Secvolt!