Take The Money And Run
Harper's Bazaar Australia|June/July 2019

Retiring 20 years early and not having to worry about cash flow? What was once a pipe dream is becoming reality for one BAZAAR reader

Hannah James
Take The Money And Run

FIRE stands for Financial Independence, Retire Early. The method, however, is much less glamorous than the goal: you save aggressively for years and make smart investments so you can eventually live off the passive income. The movement was popularised in the US by software engineer Peter Adeney, known online as Mr. Money Mustache, whose creed of saving the majority of his income saw him retire in 2005 at the age of 30. Since then, blogs and discussion forums about FIRE have proliferated online and it is taking the Australian media by storm. At its extreme, FIRE might not appeal to many, but I believe you can still live a beautiful life while saving for the future.

My husband and I started investing in our mid-twenties (I’m 35 now) because we wanted to retire 10 years early, at 55. Honestly, we’d always been lackadaisical with our investments, happy for them just to tick along. But when I started reading about FIRE, I realized most people following the lifestyle were retiring even younger. I became more conscious of my investments and realized if I pushed a bit harder, I could get there too.

In practical terms, we’re aiming to retire with about $2.5 million in assets, returning at least five percent yield per year. We’re more than halfway there — as of February 2019, our net worth is $1.5 million, excluding the family home. After tax, we jointly earn about $213,000. We also have four investment properties, and right now we’re saving about 19 percent of our income, although I’d like to increase that to 30 percent. We should be able to retire in 10 years.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM HARPER'S BAZAAR AUSTRALIAView all
Grounded In Gotham
Harper's Bazaar Australia

Grounded In Gotham

As she acclimatises to life under lockdown in her adopted city, model Victoria Lee reflects on fear, family and the fortitude of New Yorkers

time-read
3 mins  |
June/July 2020
Woman Of Influence Ingrid Weir
Harper's Bazaar Australia

Woman Of Influence Ingrid Weir

With a knack for elevating creative yet quotidian spaces and a love of bringing people together, the interior designer is crafting a sense of community among young artists.

time-read
5 mins  |
June/July 2020
CODE of HONOUR
Harper's Bazaar Australia

CODE of HONOUR

At Chanel’s latest Métiers d’art showing, house alums Vanessa Paradis and daughter Lily-Rose Depp reflect on the red-carpet alchemy of Coco’s beloved bow, chain, camellia and ear of wheat.

time-read
5 mins  |
June/July 2020
Stillness in time
Harper's Bazaar Australia

Stillness in time

Acclaimed Australian fashion designer Collette Dinnigan’s new life in Italy has been a slowing down of sorts — but now, with coronavirus containment measures in play, life inside the walls of her 500-year-old farmhouse in Puglia has taken on a different cast, she writes

time-read
4 mins  |
June/July 2020
In the BAG
Harper's Bazaar Australia

In the BAG

Aussie expat Vanissa Antonious from cult footwear brand Neous on going solo and stepping up her accessory offering.

time-read
5 mins  |
June/July 2020
uncut GEMMA
Harper's Bazaar Australia

uncut GEMMA

Forging her own path while paying it forward to the next generation, actor Gemma Chan is the (very worthy) recipient of the 2020 Women In Film Max Mara Face of the Future Award. She reflects on fashion, the Crazy Rich Asians phenomenon and red-carpet alter egos with Eugenie Kelly

time-read
5 mins  |
June/July 2020
THE TIME IS NOW
Harper's Bazaar Australia

THE TIME IS NOW

Esse Studios founder Charlotte Hicks’s slow-fashion model may just blaze a trail for the industry’s new normal. She talks less is more with Katrina Israel

time-read
3 mins  |
June/July 2020
COUPLES' THERAPY
Harper's Bazaar Australia

COUPLES' THERAPY

Brooke Le Poer Trench ruminates on the trials and tribulations of too much time together

time-read
8 mins  |
June/July 2020
CALM IN A CRISIS
Harper's Bazaar Australia

CALM IN A CRISIS

Caroline Welch was a busy woman who wrote a book on mindfulness for other busy women. Now, in the midst of a worldwide pandemic, she has started to take her own advice

time-read
5 mins  |
June/July 2020
ACCIDENTALLY RETIRED
Harper's Bazaar Australia

ACCIDENTALLY RETIRED

As we settle into the new normal of lockdown, Kirstie Clements finds a silver lining in the excuse to slow down and sample the low-adrenaline lifestyle of chocolate digestives, board games and dressing down for dinner

time-read
3 mins  |
June/July 2020