It's easy to dismiss the super savers who embrace the FIRE movement as starry-eyed dreamers. Financial Independence, Retire Early followers -- many of whom are millennials who consider working 9 to 5 to be drudgery -- often save 50 percent to 70 percent of their annual income with the goal of retiring in 10 to 15 years. The aggressive "Lean FIRE" savers share tips online on how they manage on less than $40,000 a year -- for example, by Dumpster diving, living in a van, not having children or subsisting largely on a diet of rice and beans.But FIRE is much more than that. FIRE followers track their money, invest in low-cost funds, avoid high-interest debt and focus their spending on what's important to them, rather than buying things just because they can afford them. Adapting some of these FIRE principles to fit your less-austere lifestyle can go a long way toward helping you achieve your retirement goals. If you're not ready to go full-blown FIRE, here's how to be FIRE-ish:Boosting savings gives you more money to invest. But more important, "every time you increase your savings rate, you are decreasing your lifestyle," says Whitney Morrison, principal financial planner with LegalZoom. That means you won't need to accumulate as much to maintain your lifestyle in retirement. FIRE folks typically watch every penny. You don't have to be that precise, but you should have an idea of your cash flow so you can find extra dollars to put toward savings. Some expenses, such as a car loan or kids' extracurricular activities, disappear over time, freeing up money that you can redirect into investments, says Melissa Sotudeh, a certified financial planner in Rockville, Md. "If you're at the point that you've got the kids launched, that's a big pay raise there," she says.Or boost savings by cutting expenses. "There is a lot of low-hanging fruit that won't force you into depriving yourself," says Brad Barrett, cofounder of the ChooseFI website. You don't have to give up your lattes. Look to housing and transportation, the largest expenses for consumers. If the kids are grown and you no longer need a four-bedroom house, consider downsizing.

Read the original post:

Retirement: The benefits of being FIRE-ish - Chicago Tribune