I am 31 years and have corpus of 21 lpa . My monthly expenses are around 12k and 50k salary per month.
Kindly suggest me my fire number and how to achieve that so that I may retire at the age of 40.
Currently single and does not have house of my own.
Ans: It's fantastic to see your proactive approach to financial planning at 31, aiming for early retirement. The concept of FIRE (Financial Independence, Retire Early) has gained traction globally, and it's achievable with careful planning and discipline.
Firstly, calculating your FIRE number involves understanding your annual expenses and multiplying them by the number of years you aim to be financially independent. Given your current monthly expenses and assuming they remain consistent, you might need a corpus that can generate a similar or slightly higher monthly income to maintain your lifestyle.
To retire by 40, you have roughly 9 years to build this corpus. This would mean aggressive saving and smart investing. Maximize contributions to tax-efficient investment vehicles, diversify your portfolio across asset classes to manage risk, and consider both short-term and long-term investment options.
However, achieving FIRE isn't just about numbers; it's also about lifestyle choices. It might mean making certain sacrifices today to enjoy financial freedom tomorrow. It's a journey that requires discipline, resilience, and patience.
Consulting a Certified Financial Planner can provide a tailored roadmap, guiding you through the intricacies of achieving your FIRE goal while ensuring you're well-prepared for life's uncertainties. Remember, it's not just about retiring early but also building a life that you love beyond the paycheck.