Here's How to Retire Far Earlier (Even If Another Downturn Strikes)
A simple mindset shift, more bicycle riding, and other small adjustments to your daily routine can move your retirement date years or even decades earlier, personal finance and lifestyle blogger Pete Adeney (a.k.a Mr. Money Mustache) explained to The Motley Fool in an interview three years ago. Since then, his frugal methods have continued to rise in popularity, and his ideas have morphed into foundational bricks as part of a growing movement referred to as financial independence, retire early (FIRE).
By turning a cold shoulder to consumerism and embracing an alternative perspective, people can dramatically reduce their expenses without sacrificing their lifestyle, FIRE proponents argue. Even more, Mr. Money Mustache believes that many of the same lifestyle changes required to live on a smaller portion of your income can actually improve your life.
But has the current coronavirus-induced recession exposed vulnerabilities in FIRE? After all, much of the FIRE movement was popularized during the longest bull market in history -- and investing excess savings in wealth-building assets like the Vanguard Total Stock Market (NASDAQMUTFUND: VTSAX) index fund was frequently heralded as an important pillar to achieving financial independence. Following a brutal stock market crash earlier this year in which many index funds temporarily lost more than 30% of their value, and with unemployment rates at higher levels than the 2008-2009 Great Recession, the FIRE movement has attracted new criticism.
Source Fool.com
