My First Steps in Understanding Financial Independence & Early Retirement
Hey you!
If you had told me five months ago that I’d be working on a final year project about finances — specifically, Financial Independence, Retire Early (FIRE) — I would’ve laughed & called you a liar.
But before I get ahead with my story, here’s a little about me: I’m Tina, a final-year university student studying Communication in Singapore. My best friend once dubbed me as “Capitalist Society’s Favourite Consumer” AKA someone who falls for marketing deals easily & spends recklessly.
So, me? Doing something finance-related for my final year project? Yeah, right. I knew nothing about money management & honestly, had no clue where to get started. Budgeting & investments—those felt like foreign concepts. I was just trying to make it to the end of the month with enough money left for my bubble tea.
But oh boy, did things change fast.
How It All Started
When my group mates & I started brainstorming our final-year project, we wanted to focus on real issues that we & the people around us were facing. I confessed my spending struggles: how I tended to splurge on things that made me happy like skincare products or trips to cafes, even if it meant that I was constantly digging into my savings (this is super problematic by the way, please do not follow this). I tried using budgeting apps, but nothing seemed to stick. I felt like I could never get my finances on track.
Here’s me enjoying cafe food & if you look close enough… you’ll see my skincare collection
Then one day, my group mate excitedly introduced my team & me to the FIRE movement. FIRE? It sounded like an exclusive club for people with 30K in their bank accounts & 10K in investments. Meanwhile, my Paylah! gets rejected when the transaction is above $50…oops. But as we dove deeper into the topic, I realised FIRE wasn’t as out of reach as I’d thought. There was a glimmer of hope that maybe I could do this too?
Here’s what I’ve learned so far & maybe it’ll help you out as well.
What is FIRE?
FIRE stands for Financial Independence, Retire Early. The idea is simple: you save & invest aggressively while you’re young so that you can retire way earlier than traditional plans allow. In Singapore, the official retirement age is currently 63 & will rise to 64 by 2026. This increase is meant to protect workers from being dismissed early* [1], but for many of us (myself included), the idea of working until our 60s feels exhausting.
We’re already burnt out from the rat race, & when we scroll through social media, all we see are people living their best lives, travelling the world. Who wouldn’t want to retire early & sip margaritas on a beach?
The key mechanism of FIRE is extreme saving & investing. People pursuing FIRE aim to save 50 to 75% of their income while also investing in assets that can grow over time [2]. The ultimate goal is to reach financial independence – meaning, you can choose to stop working because your savings and investments generate enough income to cover your living expenses. Imagine tapping out of the work race in your 50s, or even earlier, if you’re dedicated enough.
Why Do People Pursue FIRE?
From going on a Reddit deep dive, I found that people pursue it for many reasons.
Some want the freedom to choose what to work on, rather than being tied to a job that just pays the bills. Others see it as a safety net—having enough savings allows them to leave work to care for loved ones or deal with emergencies, without financial stress.
For me, both reasons resonate. I want to achieve FIRE so I can relax earlier & stop feeling the pressure of the rat race. Even though I’m still at the very beginning of my career, I’ve already felt burnt out multiple times.
While I am quite an ambitious workaholic as well, honestly, maybe I just want to work in a cosy café as a barista, baking cakes. Or perhaps I could volunteer more & dedicate my energy to meaningful causes. Maybe one day, I’ll even move to Thailand & live my best life there.
Who knows? There are just so many things I wish to accomplish in this lifetime. 9-5 is good, I would love that stability, but maybe just not till I am old & grey…you know?
A visualisation attempt at some of the many paths I could take with the help of FIRE
Why Should You Consider FIRE?
So, why should you think about pursuing FIRE? Well, even if you don’t want to retire early, who wouldn’t want financial independence? It gives you the freedom to decide how you spend your time. You can choose to work on projects that bring you joy, travel, or even just spend more time with family. The point is, you’re no longer stuck working just for the paycheck. For people like me, who struggle with budgeting & feel like they can’t get a handle on their finances, FIRE offers a structured path to financial security. To me, it’s not about living frugally forever—it’s about making smart money choices now so you can enjoy life later.
My Journey into FIRE
At first, I thought FIRE was impossible for someone like me. How could I ever save enough when I barely have 3K in my bank account? I also feel handicapped in many ways as I have a student loan that I am saving up for (Many thanks, NTU), & what if I meet the love of my life within the next few years & we decide to BTO? Where do I get the money?
These thoughts were seriously a wake-up call for me. I knew I had to somehow get my finances on track, as early as possible. Thus, as I researched more, I realised it’s not as far-fetched as I thought.
One small step at a time, right? Maybe I’ll start by saving 40% of my income while I’m still in school & see how it goes once I start working. I could even aim for the “100K by 30” goal that many people in the FIRE community talk about.
Alternatively, I can also consider the 4% rule, which is widely known as one of the key principles in FIRE [3]. The idea is to save enough so that you can withdraw 4% of your retirement portfolio each year to cover your living expenses. To get there, you’ll need to save 25 times your estimated annual expenses. For example, if I think I’ll need $4,000 a month to live comfortably, then my FIRE number would be $1.2 million.
Calculating your FIRE number using the 4% rule
Of course, this is just an estimate, & there are factors like inflation, healthcare costs, & increasing life expectancy to consider. The 4% rule isn’t set in stone—it should be reviewed every few years to make sure it still works for you.
Honestly, I am not too sure if I’m able to stick to the 4% rule completely as it seems quite stressful, but it is good to at least have a number I am working towards to track my progress.
My Fears & Concerns
As exciting as FIRE sounds, it’s not without its challenges. One of the main barriers to starting FIRE is my lack of capital, as I need to pay off my student loans first.
However, even after I earn a full-time salary & manage to be #debtfree, one of my biggest concerns is inflation. Prices are always rising, & the money I save today might not be worth as much when I retire. I’m also worried about missing out on life in the present. How do I balance saving for the future with enjoying my life now? What if something goes wrong—like a market crash just when I’m about to retire? These are the questions I’m still figuring out.
Wanna figure this out together?
So, if you’re like me & you’re curious about FIRE, let’s figure this out together. I’m still beginning my journey, but I think it’s worth exploring. Let’s learn the ropes together, & maybe one day, we’ll be the ones relaxing on a beach, sipping margaritas together.
Stay tuned as my team & I share more helpful resources & personal anecdotes. If you resonate with my story or have any insights, please feel free to reach out directly via our Instagram account, @playingwithfire.sg!
I’m happy to share more with you & will keep you all updated on my journey.
With lots of love (& confusion),
Tina
* You have this protection if you:
Are a Singapore citizen or Singapore permanent resident.
Joined your employer before you turned 55.
Editorial Note:
Opinions, analyses, reviews or recommendations expressed in this article are those of the author alone, & have not been reviewed, approved or otherwise endorsed by any third party.
References
[1] Ministry of Manpower (2024). “Retirement”. https://www.mom.gov.sg/employment-practices/retirement
[2] CNBC. “What is the FIRE movement?” https://www.cnbc.com/select/what-is-the-fire-movement/
[3] Investopedia (2024). "What Is the 4% Rule for Withdrawals in Retirement?" https://www.investopedia.com/terms/f/four-percent-rule.asp
Latest Posts
