FIRE is having a moment, and its not hard to understand the appeal.
Its a movement thatsquickly gaining momentum, too.
What is FIRE, exactly?
(Chances are, youre skeptical right now.
Many FIRE enthusiasts wholeheartedly acknowledge the privilege of the FIRE movement.)
Namely, its about flexibility.
The movement works on a loose, non-traditional definition of what it means to be retired.
Who is FIRE for?
If you have a high-paying but soul-sucking job, FIRE probably sounds pretty good right now.
Achieving FIRE is a big deal, and it takes a lot of focus and determination.
Its not for those who want to get rich quick, or for those who just hate their job.
Hester loved her career in politics and media but didnt like the pace and the pressure of traveling constantly.
Many people who achieve financial independence do so as a W2 employee, he said.
Its not about an escape from your career, but rather an all-around lifestyle upgrade.
That doesnt quite make logical sense whenwage stagnationis still an issue for many.
While financial independencedoesrequire cutting back on expenses, it also requires a decent income.
That said, many in the FIRE community acknowledge this.
For many people, asking these questions is outside of the realm of their day to day life.
We have a real problem with income gap and people who do not make a living wage.
And so is frugality.
Thames breaks it down that there are three elements to FIRE: time, expenses, and income.
The goal is to put space betweenexpensesandincome.
How much space you put is how muchtimeit takes you, she said.
So while the rules are simple, getting there is, of course, another story.
Reaching FIREinvolves the same conceptsof reaching any other financial goal, and it ultimately comes down to behavior.
I dont miss out on anything in my life being frugal, she said.
I spend money on things that are important to me.
Theres just not a lot that I need to buy to live a very a fulfilling life.
As Hayes puts it, its more about being intentional with your money and less about being frugal.
Do you want to have more than two weeks per year of vacation time?
Do you want to spend more time with your loved ones?
once you nail that why, you want to determine your path.
Thames suggests being as specific as possible in figuring out your why.
I would write it down.
And if you have a family or a partner that you live with, bring them in the conversation.
Most of us are shocked to realize how much we actually spend, Hester said.
We dont promote a message of extreme frugality, he said.
Instead our message is based on value being the guiding light behind purchasing decisions.
Hayes recommended reviewing each line item in your budget and asking, Is this adding value to my life?
Once youve conquered your spending, its time to look at your net income and compare.
Thames said to subtract your fixed mandatory expenses from your income and then adjust your discretionary expenses as necessary.
From there, FIRE comes down to math and mechanics.
In an episode of his podcast, Mendonsa suggeststen pillarsof financial independence.
Like any other financial goal, the math is easy and everything else requiresresourcefulness, diligence, andpatience.
As Thames says, you could start your goal at any point and then move forward.
This story was first published in 2017 and was updated in October 2019 with more current information.
