What is the FIRE Movement?

Following the FIRE Movement? Seeking financial independence? Want to retire early? Start with this article.

Much of the chatter in the financial world is chattering with the word “Fire,” specifically the acronym “F.I.R.E.” But what does this mean, and why does it matter?

The acronym stands for Financial Independence, Retire Early.

Podcasts, books, and even blogs such as this have emerged around the subject in recent years. The surge in content and rapid adoption from the populace has even led to an idea many are labeling the “FIRE Movement.”

This idea has stirred and invigorated the hearts and minds of many Americans! Read this article to learn more about the F.I.R.E. Movement.

Pursuing Financial Independence

So now, what makes the FIRE Movement so special? Why has it captured such attention? It all comes down to the beating heart of the movement — independence.

To be independent would first imply some sort of dependence or, in other words, a lack of freedom. For the average individual, this dependence is rooted in the perpetual need for income.

Bills and expenses never stop coming—the mortgage is due, the car needs an oil change, little Jimmy needs new soccer cleats, the list keeps going, and let us not forget about the twenty-seven doctor bills that keep showing up months after that overnight emergency room trip.

Defining Your Independence and Financial Freedom

People are taking a step back and re-examining their lives (something a lot of us have come across during the last few years coming out of Covid). They ask themselves how they can redesign, better yet, reinvent their lives and do more of the things they care about and less of all the other stuff they don’t.

Your independence might look like starting that hobby you always dreamed of, spending more time with people you care about, or trying the things you’ve always wanted to try.

💡 KEY TAKEAWAY – You need to define your definition of financial independence

My Definition of Financial Freedom

Personally, my definition of financial freedom is being able to wake up, walk outside, and garden until the sun goes down without worrying about whether the bills are getting paid.

Today, when I walk outside my house and look out into my yard, I can picture the trees, shrubs, fruits, and vegetables, the mulch’s curves, and the hardscaping features found throughout. I can see the acres of land clothed with beautiful trees providing shade for resting areas and secret gardens to escape to.

I dream of homeschooling my daughter and taking her outside to learn how to garden and provide for our family and her future family one day. As my incredible wife is educating our children about ancient Rome, I dream of being able to pack up on a whim and fly my family to Rome, and we go on a tour of the Coliseum, walk the aqueducts, and eat the culture’s cuisine. I dream of my life and my family’s life looking like this!

💡 KEY TAKEAWAY – The FIRE movement aims to help people turn these dreams into reality as soon as possible.

What’s Next?

The next step is to let your mind wander and dream big. There are no wrong answers here, and your financial freedom definition can and will likely change over time.

So now, as you’ve dreamed and thought your thoughts, the next step to consider is “How do we get there?”

When people start the journey of trying to attain “F.I.R.E.,” they quickly see the need for a solid financial foundation as they will have a very extended period where they will be drawing down from their assets to pay for bills, expenses, and most importantly, the hobbies they enjoy doing.

As you consider the possibilities, you will find your mind wandering around the tactics to reach this desired level of investment.

A litany of questions begins flickering and bouncing around your mind:

• When do I have enough?
• What type of account should I open?
• What should I invest in?
• What rules exist around getting my money out of my accounts before retirement age?
• How much would all these hobbies cost?

💡 KEY TAKEAWAY – If you are thinking about these questions, you’re not alone and are thinking precisely how you should be.

Many pursuing this financial independence start by analyzing their budgets and figuring out ways to save more money, as the speed you reach FIRE is highly dependent on the rate you save. They might decide to cook at the house versus eating out or maybe even get a second job to enable them to save enough to reach their financial freedom by their desired date.

There are many decision points along the road to Financial Independence, and with some of this blanket advice floating around, you could end up with a less-than-desirable or delayed early retirement.

Everyone’s situation is different, and everyone deserves a financial plan and a partner to walk alongside to help answer these litanies of questions that arise regarding attaining Financial Independence and Retiring Early.  

We would love to have a free conversation and get to know your definition of financial freedom and help you navigate attaining that goal.

S.E.E.D. Planning Group LLC (S.E.E.D.) is a Registered Investment Advisor (RIA) with the Securities Exchange Commission. S.E.E.D.’s team provides investment fiduciary and financial planning services to clients. Our fees are disclosed, easy to understand, and not predicated on product sales.