Meet the FIRE movement

Have you heard of the “FIRE” movement? FIRE stands for “Financial Independence, Retire Early,” and it’s all about saving aggressively in order to retire early — as early as your 30s (or even your late 20s). It’s worth learning about it, in case you want to work toward that goal — and even if you don’t, you can probably benefit from adopting some FIRE strategies. You may not retire early, but you might retire on time and be financially secure when you do.

Some FIRE strategies include saving 50% or more of your earnings, increasing those earnings by taking on side jobs and cutting costs. Many FIRE enthusiasts live well below their means, often unconventionally — such as by not having a car, choosing a smaller home or apartment than they can afford and not eating out. All this may seem too extreme and unappealing to lots of us, but for the many people who are way behind in saving for retirement, such strategies are worth considering.

The FIRE movement does have some critics. Some worry that anyone retiring in their 20s or 30s might not have sufficient savings and investments to carry them for the next 60 or 70 years. Others suggest that an early retirement isn’t necessarily the best goal; if you have a job you enjoy, you could do well to just keep working, giving you more to spend along the way. Another knock against FIRE is that it involves a lot of sacrifice, deferring many enjoyments until late in life.

Consider reading up on FIRE to see what you really think of it, and whether some of its strategies could help you reach your financial goals. You’ll find many articles via an online search. You might also read the books “Start Your F.I.R.E. (Financial Independence Retire Early): A Modern Guide to Early Retirement” by Dylin Redling and Tom Allison (Rockridge Press, $14), and “Playing With FIRE (Financial Independence Retire Early): How Far Would You Go for Financial Freedom?” by Scott Rieckens (New World Library, $17).