Feb 24, 2022

The FIRE Movement started back in 1992 after the book Your Money or Your Life detailed the steps to financial independence in a new light. FIRE stands for financial independence, retire early. This lifestyle was characterized by saving 50% or more of your income.

Now that seems like a lot! But followers of this movement highlight the importance of optimizing their money to achieve happiness and leveraging their assets to achieve financial independence as early in life as possible. While much of this philosophy may seem extreme, there are some valuable things we can learn from the FIRE model. Many retirees save their entire life for retirement but are content not spending all of it down to the last dollar. Similar to a budget, with FIRE you track every dollar you spend.

With this mindset you buy what you need and nothing else. With less to buy or maintain, you save a lot of money.   While the FIRE movement may not fit everyone’s lifestyle there are valuable money lessons to learn from this mindset.

Some people want to retire as early as possible. While others, enjoy their career and may spend a little more now and retire later in life. At the end of the day, the FIRE movement’s biggest lesson is about learning to be happy with what you have.  

TIMESTAMPS: 

0:21 – The FIRE Movement

5:24 – Having a similar mindset

7:10 – Tracking every dollar you spend

9:45 – Buy what you need and nothing else

11:12 – Wanting to retire later in life

15:40 – The generational cycle

MORE INFORMATION:  https://www.flemingfinancialservices.com/podcast