Yogesh Sharma, a UK citizen living in Abu Dhabi, worked full-time from 1990 to 2022.
He stumbled upon the financial independence, retire early (Fire) movement accidentally when he received a copy of the book Unshakeable by Tony Robbins in 2017.
Over five years, he delved deeper into the concept of financial independence and eventually quit his job in 2022 after working for one of the UAE’s largest telecoms companies for 15 years.
Now 58, he is a financial independence enthusiast and practitioner, splitting his time between Windsor in the UK and Abu Dhabi.
“I started the Fire journey in 2017 when I was age 51. In five years, I was able to get things in order where I was able to work out that our passive investments can generate enough to be more than our annual spending. Therefore, we can depend and live off investments,” Mr Sharma says.
“I was able to make a path to financial independence from 2017 and could see from my spreadsheet and countless … hours of reading, hearing podcasts and fine-tuning my Excel workbook that we could step off the treadmill in 2022.
“This is because of intentional planning, high savings rate, having emergency funds and loading everything we had into low-cost index funds.”
The Fire movement entails extreme saving and investment strategies that enable people to retire much earlier than traditional financial plans would allow.
The movement originated from the 1992 best-selling book, Your Money or Your Life by Vicki Robin and Joe Dominguez.
Advocates typically remain in the workforce for several years, saving up to 70 per cent of their annual income. When their savings reach about 30 times their annual expenses, or about $1 million, they quit their day jobs or retire from work altogether, Investopedia says.
Mr Sharma recalls conducting extensive internet research and discovering Mr Money Mustache, a personal finance blogger, and Andrew Hallam, a personal finance author and former high schoolteacher.
He acquired Hallam’s book Millionaire Teacher which emphasised that financial success can be achieved by following certain habits without requiring extensive financial knowledge.
“The key thing I took away from Unshakeable was that you have to be a part owner in the world’s best companies,” Mr Sharma says. “Hallam’s key ideas resonated with us as expats in the UAE. He urges us to take future pension planning seriously.”
Among his favourite personal finance books are The Psychology of Money, Die With Zero and The Algebra of Wealth, among others.
He also met with members of SimplyFI, a Facebook group of personal finance and investing enthusiasts in Dubai.
After listening to many financial podcasts and buying books on personal finance, Mr Sharma realised that he had to get his house in order and review some of his bad financial decisions.
“For nearly a decade, I was one of these people in the UAE who had subscribed to a very expensive financial savings and investment scheme. Once expats leave their home country, they can become targets of the financial advisory industry,” he says.
“We can accept that we've all made financial errors. But you can always course correct. It's never too late.”
The Fire movement forces you to think consciously about what you spend on, have emergency funds organised and where you should invest, says Mr Sharma, who wrote a financial guide book titled Your Wheel of Fortune, available on Amazon UK.
Grow the gap between your income and spending, and then invest the gap. You should be able to create the gap because you are a conscious spender with a budget, he says.
“We tend to outsource these important decisions to the financial advisory industry. You can do a lot better if you manage your investments yourself with discipline, with the help of companies like Vanguard and other brokerage account platforms,” he says.
“Keep your finances simple but also make automatic payments, so you're not doing too much active management month by month or every quarter. This way, you're buying more investment funds every month. Another great habit is to do dollar-cost averaging.”
The best asset classes are limited, he says, citing low-cost index funds and rental properties as his best picks.
Mr Sharma was able to develop a more balanced investment portfolio after becoming a financial independence proponent. Before that, his investments were too property-focused.
His wife and he currently have four Vanguard index funds that cumulatively invest in 10,000 of the best listed companies globally.
Two of them are variants of the US market while the other two are focused on global equities and global small-cap stocks, he says.
“My wife and I have always been savers. It's always helpful if both spouses are on the same page when it comes to money, finance and investing,” Mr Sharma says.
“When our careers took off, we gradually got into the first main asset class, which was rental properties.
“But we fixed our focus on property as an asset class and weren't thinking at all in terms of investments, apart from a branded savings and investment scheme, which was extremely high risk and high fees. That didn't materially produce any net return.”
A spreadsheet helped him to understand that the couple had a good savings rate and should maximise their ability to invest in low-cost index funds every month. So, he used the returns from his rental properties to invest in the stock market.
The best thing an average retail investor can do is to not be greedy about excess returns but just be happy to take market returns, he says. Compound interest and time do the hard work for you, he says.
“I looked at all my investments, my different buckets of income and added them up. I adopted a strategy of paying down my mortgages to ensure that maximised the chance of net cash income,” Mr Sharma says.
“Otherwise, most of the revenue from property goes into servicing debt, property maintenance, paying for property agents and accountant’s fees.
I could see from my spreadsheet and hours of reading, hearing podcasts and fine-tuning my Excel workbook that we could step off the treadmill in 2022
Yogesh Sharma,
Fire movement practitioner
“Try to do an assessment of your financial situation. It requires an active management of your spending.
“Once you have income, you can apply wisdom and decide how much of a savings ratio you can develop, and then put the gap between income and spending into investments like mutual funds and low-cost index funds.”
Keep your investment fees to a minimum, he says.
“We shouldn't be paying more than 1 per cent total annual expenses for paper financial instruments. If you’re paying 2 per cent or 3 per cent, then it's game over because perhaps a third to two thirds of your future stock market growth return gets dissipated in paying the fees,” he warns.
Money can give you options. At some point, you can decide if you do not need a job any more. You can create new options for yourself, do part-time work or try a different job related to your hobbies and passions, he recommends.
Financial freedom is subjective but the Fire movement hastens the path to financial independence, he says.
How to join the Fire movement
Ben Bolger, a financial planner in Abu Dhabi and co-founder of digital learning platform Squirrel Education, says the Fire movement “isn't about joining a club; it's about making a personal commitment”.
“Fire challenges the traditional thinking that you must work until age 65-70 before you can start living life on your own terms and in line with your values,” he says.
“The first two words of Fire, financial independence, signify reaching a point where your income from assets and other sources covers your monthly expenses, independent of employment income.”
For those interested in exploring the Fire movement, the first step is education.
Mr Bolger says start with books such as The Simple Path to Wealth by JL Collins, listen to podcasts such as ChooseFI and follow influential figures in the movement such as Mr Money Mustache.
Also join numerous online communities and social media pages where you can connect with others on the same journey, he adds.
He says the Fire movement is guided by straightforward maths: The less you need to maintain your lifestyle and the more disposable income you can invest in income-generating assets such as index funds or property, the quicker you can achieve financial independence.
“For some, the idea of being financially independent is highly motivating. They may reassess their lives, adopt more of a minimalist or frugal mindset to cut out unnecessary spending, live on a tight budget and save every penny,” Mr Bolger says.
“However, the majority of the world's population tend to overspend and underprepare for the future. In my view, it's about finding a balance.
“We shouldn't forego living life today for the sake of rushing to financial independence in 10 years or 15 years, but that doesn't mean we should ignore our responsibility to live below our means and invest in our future.”
Once you understand financial independence and you are on the road to achieve it, don't get distracted by outside noise or promises of get-rich-quick schemes, Mr Bolger says, warning that they do not exist.
UAE currency: the story behind the money in your pockets
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UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Also on December 7 to 9, the third edition of the Gulf Car Festival (www.gulfcarfestival.com) will take over Dubai Festival City Mall, a new venue for the event. Last year's festival brought together about 900 cars worth more than Dh300 million from across the Emirates and wider Gulf region – and that first figure is set to swell by several hundred this time around, with between 1,000 and 1,200 cars expected. The first day is themed around American muscle; the second centres on supercars, exotics, European cars and classics; and the final day will major in JDM (Japanese domestic market) cars, tuned vehicles and trucks. Individuals and car clubs can register their vehicles, although the festival isn’t all static displays, with stunt drifting, a rev battle, car pulls and a burnout competition.
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Directed by:Tom Beard
Narrated by: Sir David Attenborough
Stars: 4
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
SPECS
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UAE currency: the story behind the money in your pockets
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
THE SPECS
Engine: Four-cylinder 2.5-litre
Transmission: Seven-speed auto
Power: 165hp
Torque: 241Nm
Price: Dh99,900 to Dh134,000
On sale: now
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Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
COMPANY%20PROFILE
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