A couple are sharing how they were able to achieve an early retirement and travel the world. Rob and Allie Marmion are among the many families to follow the tenets of the FIRE movement.
FIRE stands for Financial Independence, Retire Early, and sees many people making larger contributions to their savings or investments with the goal of leaving the workforce before the age of 67.
At the ages of 49 and 50, Rob and Allie – who are from the US – made the decision to retire earlier than most and travel. In order to facilitate their lifestyle abroad, the couple live off their investment earnings and sometimes work remotely.
Speaking to CBS, the Marmion family broke down what it is likely to reach FIRE and how they managed to achieve this goal.
Allie explained: “Rob probably is the one that came up with the crazy idea to sell everything. We sold not just our home, but everything that was inside of it, our cars.
“What you learn growing up is you retire when you’re 65 and you sit around and play golf and, it’s like, it doesn’t have to be like that.”
When living in Atlanta, Georgia, the couple’s monthly bills came to around £6,224 ($8,000) pre-retirement.
After doing some research, the Marmions found out they could travel the world for only £3,112 ($4,000) per month.
Rob added: “We’re in Asia right now. You can rent a luxury apartment on the beach for about £934 ($1,200) a month.”
According to personal finance expert Ramit Sethi, those looking to retire early should make plans as soon as possible.
He suggests that households should divide their take-home pay by putting away 50 to 60 percent towards their monthly bills.
As well as this, people should put aside five to 10 percent for savings, five percent to 10 percent for long-term and low-cost investments, and up to 35 percent for other spending.
Mr. Sathi: “Eating out, massages, vacation, whatever it is that you love, you could do it guilt-free once all your other numbers are taken care of.
“Your rich life should fit you like a handmade glove…You don’t have to wait. You can start it today.
“Sit down and write down what would be your dream week. That’s the beginning of your rich life.”
