Is FIRE Still Realistic?
The modern FIRE movement may be less about quitting work and retiring, and more about buying back your time.
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The FIRE movement — Financial Independence, Retire Early — has been around for years. Even before the acronym caught on, people still aimed to save aggressively and retire early.
But in our current climate of higher prices, inflation, and big money for college and housing, is it still possible to stash enough away to say an early goodbye to your boss?
Financial planners say yes — if you’re willing to do the work.
“High housing costs and inflation haven’t stopped the movement, but they have highlighted a reality that often gets overlooked,” says Marcos Segrera, a CFP with Evensky & Katz/Foldes Wealth Management in Coral Gables, Florida. “This was never just a math problem. It’s about behavior, mindset and knowing what ‘enough’ actually looks like.”
Perhaps, Segrera says, a more sustainable version of financial independence looks less like retiring at 35 and more like building enough of a cushion to have choices.
FIRE isn’t just about retiring early
One misunderstanding with the FIRE movement is that it’s about quitting work forever. Financial independence also means being able to choose what you do with your time, and that could include working part-time or being your own boss.
“A lot of these FIRE people, they don’t stop earning income, and I think that’s lost on a lot of people,” Segrera says. “They’re not retiring — they’ve found this other way of repurposing themselves.”
One of the first things Segrera does with clients interested in a FIRE approach is make them define their “why.”
“What are you trying to run from?” Segrera asks. “What are you trying to retire so early from?”
Most people want to escape their 9-to-5 grind, Segrera says, and financial independence allows them to do something they enjoy more.
“I think wealth is the idea of being able to control your time and do what you want, when you want, and with whom you want,” Segrera says. “Money isn’t really the most valuable asset. It’s time.”
FIRE requires real lifestyle choices
But it does take math — and discipline — to make FIRE work. At its core, achieving financial independence means accumulating enough money to support the lifestyle you want.
“What it takes is locking into a lifestyle and avoiding lifestyle creep,” says Ralph Bender, a CFP with Enduring Wealth Advisors in Temecula, California. “The real challenge isn’t external — rising costs, student loans, expensive housing. The challenge is internal.”
Many people expand their spending as their income rises, Bender says. Successful FIRE clients make do with smaller houses and older cars, because it means they can trade one job for another — or have one parent stop working.
“Every choice has ramifications,” says Kassi Fetters, a certified financial planner with Artica Financial Services in Anchorage, Alaska. “You want the newer car, your FIRE is going to take a little longer.”
Fetters suggests considering moving to a lower cost-of-living area when you hit your “retirement” point, looking for somewhere with lower taxes and housing costs.
“It’s a real factor in trying to figure out how much you need,” she says.
Timing and savings rates matter
An early start is important, especially if people can save aggressively before they have children.
Bender sees FIRE clients who are saving 40% or more of their income, but your savings rate may fluctuate.
“The best savers I’ve seen are clipping 30% to 35% of their gross income into some investment account or savings account,” Segrera says.
Then as kids and a house come along, that number might drop to 20% or even 10%, he says, but eventually it creeps back up as they get older and make more money.
The FIRE concept is already unconventional, Fetters says, so you have to think unconventionally to make it happen.
Instead of a house, for instance, buy a duplex and rent out the other side, she suggests. Rather than plan to retire completely, find the FIRE number that allows you to work seasonally or part-time.
“People have figured out that any normal person can make this happen,” Fetters says. “It takes intentionality, long-term planning and commitment, but it is for sure still possible.”
Should you try FIRE?
Thinking about joining the FIRE movement? Your motivation will depend on where you are now and where you want to be later.
If you’re happy where you are, FIRE might not be the path for you.
“You know who doesn’t really care about the FIRE movement?” Segrera says. “I don’t. I’m 38 years old, and I live for Mondays. I love this job. I’m very happily going to do this until I’m 70.”
If you can define what you want to do with your money and time — and it’s not what you’re doing now — you can run the numbers. Then you can decide whether you’re willing to make the sacrifices required.
“If you really want something, you’ll figure out a way to get it,” Fetters says. “How bad do you want it?”
» MORE: How to find a financial advisor
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