In the last video, we discussed the six pillars of financial fitness. Let's take a look at the first pillar, which is understanding financial goals.
The most important goal we all have once we start working is to achieve FIRE—Financial Independence and planning to Retire Early. So, let's understand what our FIRE number is. Visit finnovate.infirecalculator to calculate yours.
For example, if your monthly household expense is ₹1 lakh, your current age is 35, and you aim to retire at 55 (five years earlier than the normal retirement age), with a life expectancy of 85, here’s what it would look like:
- Assumed inflation rate: 7%
- FIRE number: ₹12.2 crores
Once you’ve accumulated a corpus of ₹12.2 crores, you are financially independent and ready to retire early.
So, the first pillar of financial fitness is understanding financial goals, and most importantly, understanding your FIRE number. Visit the Finnovate tools section to calculate the FIRE number for yourself.
