Many purveyors of FIRE (Financial Independence, Retire Early) have large incomes. These are people such as doctors or lawyers who make large salaries but live a modest, middle class lifestyle. This allows them to pile up money and reach financial independence in their thirties or forties.

Others reach FIRE through extreme frugality. Reducing their expenses to nothing so that they can save and invest despite a relatively modest income. Even once they retire, they maintain a modest lifestyle so that they don’t need a big income. Therefore they don’t need to save up so much to reach their early retirement goal.

The FIRE Movement

What is FIRE and how does it work? In the world of personal finance, FIRE stands for Financial Independence Retired Early, or some variation thereof and there is a growing movement behind this concept.

Within the FIRE Movement, one is considered to be FIRE, or FIRE’d, when their living expenses can be covered by their investment returns. At that point, you are financially independent (FI) and can retire early if you so choose (RE) because work is optional for you.

But FIRE is so much more than budgeting, investments, or a math equation.  FIRE is a way of life and a growing movement that is spreading across the globe and being embraced; not because people suddenly love budgeting and personal finance but because FIRE provides hope.

For anyone that’s ever felt trapped by the thought of a working career that could last into their late 60’s or early 70’s, FIRE provides a feasible alternative to the traditional path that society peddles.  And once embraced, the idea of reaching financial independence and retiring early is nearly impossible to snuff out. That’s because, at its core, FIRE is reclamation of one’s personal freedom.

And people long to be free.

Have you ever wanted something so badly that you’ve said “I’d to ANYTHING to have that!“?

I have too, but unfortunately that statement rarely comes with any real teeth.  Mostly the wish rings hollow.  Once we find out what it really takes to get whatever it is we’re wishing for, we’re unwilling to put in the effort or make the sacrifice.

Continue reading “Be Tenacious With Your Financial Goals”

I’ve had an epiphany of sorts: FIRE is Freedom.

Rather than a flash of inspiration, or a sudden strike of brilliance, this has been more like a light bulb dimmer switch slowly being pushed up, gradually providing more and more illumination.

I’ve come to realize that my drive reach financial independence and retire early isn’t really about financial independence at all.  It’s really about personal independence; FIRE is Freedom.