The FIRE Movement: Sheep in Wolves Clothes (Part 1 of 2)

It’s been a while since I’ve posted. Some may even thought I retired (pun intended)…Nope still here and still working. Just needed to catch up on other things.

I’d say there is a good chance that 99.9% of the ten people that read this blog have no idea what pun I intended and what the heck the FIRE movement is.

Well, microwave your coffee or take a little longer in the bathroom, I’ll explain.

Traditional retirement has a plan of working around 40 years after school. I know, you probably threw up a little. That’s a long time. Meanwhile, you incrementally save and invest that money during your working career until you’re around 65 years old. You then draw down your nest egg to cover daily spending after you quit work to start watching Wheel of Fortune and doing crossword puzzles during the day. Disclaimer: I say that facetiously. There are lots of retirees living out their dreams and contributing meaningfully to society. Respect.

The FIRE movement is the counter to the traditional retirement path. It focuses on saving as much and as early as possible. It’s like your cheap friend that won’t go eat with you at that nice restaurant you love or the one that borrows everyone’s tv subscription passwords but never has their own to share. 

The reason for the extreme stockpiling by the FIRE crowd is to become Financially Independent and Retire Early. And by early, there are FIRE plans to retire at age 35 or 45 instead of retiring when you’re on your second knee replacement. The sacrifice that has to be made is that you’ll need to be saving and investing 50%-75% of your income as early as possible for ten to fifteen years. A illustrative chart for visual learners:

So, I am at my self-induced word limit for this post. Your coffee is lukewarm by now or you’re done with your business. This is a two part piece. The FIRE movement is a counter to traditional retirement. It’s aggressive and extreme in its approach but the premises are resolve, persistence, and thriftiness. However, much is talked about the FIRE Movement problems and rightfully so.

I’ll explain more in part deux…

Teaser: The value you derive from work isn’t what determines your worth. Your worth is determined by the values you instill at your work.

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