A personal finance movement is gaining increased popularity as people attempt to live frugally in their 30s and 40s in an effort to retire early.
Financial Independence, Retire Early (FIRE) is described as an extreme savings and investment programme that aims to allow people to retire far earlier than traditional plans would facilitate.
FIRE advocates save around 70% of their income over several years in the hopes of saving enough to live off their pension pots for decades in the future.
Financial Planner Eoin McGee explained how FIRE can work to help some people retire as early as their 40s.
The host of RTE's 'How to be Good with Money' gave the example of one couple recently featured on the show who are now saving from the age of 25 and could likely retire just two decades later.
"It is really frugal, you really have to drive down your expenditure and it's your expenditure that you control there," he said of FIRE on RTE's Today with Claire Byrne programme.
"You have to have a bit of luck and you have to make sure you're money is being really used to its optimum.
"But people have achieved it and people do it.
"We had someone on the show last week, [a couple who are both] 25 years of age, and you could argue they could achieve FIRE because when I looked at their finances and when I look at how they spend, they're going to be able to stop working at 45 if they keep doing what they're doing."
Mr McGee agreed that for most people, early retirement is a "pipe dream", but it's not impossible.
"What's interesting about that couple is they're both on the same money, doing the exact same job, so they're both on €42,500 each, it's their expenditure that they're controlling," he said.
"And that's the big difference.
"People often kind of chase the higher income but if you can control your spending [you could achieve FIRE]."
He also acknowledged that for many, paying enough money into a pension fund is a "serious problem" but explained how someone can build up a significant pension pot of €200,000 by making shrewd financial commitments.
"We're looking at inflation, we're looking at all these costs which are just going up and up," Mr McGee said.
"The thing about it is, savings and pensions are no different, you're in the habit of putting money into it or you're not.
"What I would say is people sometimes get put off by me coming on the radio and saying you need €200,000 in your pension pot and they go, 'I'm never going to get there'.
"You just put in whatever you can afford to start the habit off and then turn up the volume."
He added that research shows people are reluctant to commit their current salary to a pension.
However, one good idea is for people to pledge a commitment of 50% of any future pay rise to their pension as they haven't spent that money yet
"If you're really stuck and you really don't have money at the end of the month, just commit that you're going to do this at the first opportunity you get," Mr McGee said.
