The Early Retirement Extreme (ERE) strategy is a lifestyle and financial approach aimed at achieving financial independence and early retirement.
It emphasizes simple living, anti-consumerism, DIY ethics, self-reliance, and resilience.
The strategy involves managing personal finances like a flexible and efficient business, focusing on maximizing savings and minimizing unnecessary expenses.
Pros:
- High Savings Rate: ERE encourages saving a significant portion of income, often 40-80%, which can accelerate the path to financial independence.
- Frugality and Efficiency: By living simply and efficiently, individuals can reduce their cost of living, making it easier to sustain themselves on a smaller retirement fund.
- Self-Reliance: Encourages developing skills and habits that reduce dependency on external services, which can lead to cost savings and increased resilience.