How do you reach financial freedom?
Traditionally most FIRE proclaimers have advocated that investors should only look to save and invest their hard earned money in safe dividend stocks and index funds. This is definitely a relatively safe (yet time consuming) method to achieving financial freedom. Historically FIRE proclaimers have advocated the 4 % rule which means that you need to save enough money in order to be able to live on 4 % returns of your capital in order to have your money last forever. Typically, your “FIRE number” is achieved by multiplying your annual costs with 25. We believe the 4 % rule to be a good measurement of being able to live off your returns during an unlimited time period – Source. Starting from 0 even if you have a very high savings rate, it could however take you 15-20 years to achieve financial freedom by simply investing into dividend stocks and index funds. But what do you do if you don’t want to wait 20 years to become financially free? What if there was a possibly faster (although riskier) way to achieve your “FIRE number”?
ESGFIRE offers an alternative way on how to achieve FIRE faster than using traditional dividend investing. Read more about our strategy under the About us section.
We are not financial advisors and investing in stocks is always associated with certain risks, it is possible to lose your entire investment.