Rather than getting depressed about the increasing cost of living, some young Australians are taking inspiration from a movement called FI /RE — financial independence, retire early.

Its advocates claim that by living as cheaply as possible now, they can save money to invest in their financial future, and then give up work when they reach their goal.

Matt is in his late 20s and has a plan in place towards achieving financial independence — he writes about it at his Aussie Firebug blog. We also hear from Deb, who is not even 40 yet but has retired.

Financial advisor Paul Benson takes us through the risks and benefits of this approach.