FIRE stands for Financial Independence/Early Retirement. I love the first part:
Financial Independence
I hate the second:
Early Retirement
It took me a while to figure out why, but I understand now. Before I get into that, let’s talk about a fundamental problem with the FIRE movement.
The Problem With FIRE
You’re not going to get to a place of financial independence sitting on your ass. I worked very hard for 18 years. Too hard in at least one case. Hard work is in my blood. It’s a fundamental part of who I am. And it brought me wealth.
Early on, I figured out the path I needed to go down and didn’t waste any time. My formal computer training was in mainframe programming (COBOL Y2K remediation). I knew that COBOL wouldn’t be as relevant after 2000, so I moved on. The languages that made me the most money as a computer programmer (object oriented development with Java and later .NET) were almost completely self-taught. I applied those skills at my job with full effort.
I put the same sweat into my home flipping adventures. For most of those past 18 years of my life, I had two jobs. I’d write code during the day and swing the hammer at night and on weekends.
And most of the FIRE folks I’ve met are similar. We’re a driven, achievement-oriented set. And this is why we’re not compatible with retirement.
Why I Hate “Early Retirement”
Now, let’s consider the definition of word the word “retirement”:
The part I really don’t like is ceasing to work. The fundamental problem I have with the phrase “early retirement” and more generally, the FIRE movement is this:
Hard work is what enables us to retire early. It’s ingrained in most of us FIREy folks. We work hard which leads to healthy income. How can we just shut it all down and stop work?
Recently, I came to an answer.
Reconciling FIRE
Imagine you inherited $100,000,000 tomorrow. You may choose to stay at your job. And that’s great! If you would, you’ve discovered your true passion in life and it happens to pay you.
While many of us are fortunate to enjoy our jobs, would we continue them if we had all of the money in the world? Is it worth having to adhere to a rigid schedule and limited time off? Most would opt out.
But, the goal of achieving FIRE shouldn’t be to quit your job. The real goal is be able to make decisions without the constraint or factor of money.
And the problem remains; how do you reconcile a driven personality with retirement? The answer comes when we redefine work. The second definition is what most people think of when they consider their job:
But, the first definition is better:
What’s really interesting in this definition is these words:
to achieve a purpose or result
In the traditional meaning of work, the purpose and result is mostly income. However, this changes when we become FIREd. When you have enough money, you can do whatever work you want to, regardless of money. Wouldn’t it be incredible to:
Do the work that puts a smile on your face at the end of every day.
Do the work on your own terms, when and where you want to.
Do the work that allows you to maximize time with friends and family.
Do the work that makes the world a better place.
Do the work that sets your heart on fire.
Money Is The Easy Part
When I left my job, my biggest worry wasn’t money, it was emotions:
Would writing here on this blog fulfill my need for purpose? If not, could I find meaningful work that made me feel good at the end of the day? If not, would I need to go back to a traditional job to get the feeling back? I didn’t know.
Now that I’m busy doing what what I enjoy*, the thought of going back to a traditional job holds the same level of appeal as a sharp poke to an eyeball or a kick in my boy-bits.
I used to worry how I’d reconcile the hard work that I thrived on with FIRE.
Now, I wonder how folks reconcile working five decades while denying themselves the life that they feel deep down they were meant to live.
*writing here on this blog, building random stuff in the garage, writing Rails code for a new app and even taking multi-hour, meandering walks every once in a while
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“Do the work on your own terms, when and where you want to.”
“Do the work that sets your heart on fire”
My job fails miserably at these two points and is a big FI driver for me. I KNOW that I don’t want to do what I’m doing now and whole I pursue FI – I will figure out the rest
Good two quotes/points to highlight.
It’s difficult for many individuals to even just do the first (how – or your own terms, when, and where). Most “traditional” jobs require “traditional” hours, Monday through Friday, just because that is when others are expected to complete work.
And agreed about knowing what does NOT make you happy or what you DON’T like doing. It does make figuring out the rest – and identifying what makes you happy – easier when you know what doesn’t make you happy.
Mike @ Balanced Dividends recently posted…Passive Income & Portfolio – November 2017 Update
I’m also FIREd and I agree 100% with everything you’ve said here.
The thought of going back to my old job makes me feel a little nauseous. But I enjoy the challenging “work” that I’ve created for myself with my blog, exercise, and other stuff.
Mr. Freaky Frugal recently posted…My kinda bikeshare job
I like when you say ” The real goal is be able to make decisions without the constraint or factor of money.”, this is what it is about. When you reach a comfort level that dollars and cents don’t impact your decision making. These decisions don’t have to be huge life changes, but also everyday decisions.
I have about 3-5 years left at the 9-5 before I can fully take on this approach, but it has already started to influence some decisions our family has made in the last year.
FIbythecommonguy recently posted…Net Worth Update #8 – Nov ’17
Yeah! The great thing about having money is that it frees you from having to think about money!
FIRE is more or less like Wittgenstein’s ladder-it’s a concept that, once you understand it or achieve it, becomes useless.
Mr. PoP recently posted…PoP Income Statement – November 2017
Philosophy majors!
But yeah, kind of like money. Once you have enough, you’re liberated from having to think about it much if at all.
I like to say that I “retired from full-time work”, which is entirely true and accurately represents my situation. I’m certainly not sitting here doing nothing far from it. I just don’t have a full-time job and, hopefully, never again will.
Steve @ Think Save Retire recently posted…9 ways to be above average
Great post, we just need to remind folks that it means “retire early from more traditional, w-2 based work”.
But that makes for a crappy acronym.
It’s a good start though!
Hmmm, we should come up with a better one!? I’m out of creativity at the moment though.
You guys are FINE and my goal is to be FINE??
(financially indedependent non employed or financially independent no employer ?)
FINE! Love it!!!
I was going to suggest (F)inding (I)ncome (R)eally (E)asy or some variation.
One’s income should be easy to identify assuming he or she has reached financial independence. 🙂
Mike @ Balanced Dividends recently posted…Passive Income & Portfolio – November 2017 Update
FIFO- Financial Independence Freedom Options
Mrs.Wow recently posted…Rethinking the Thought That Counts
we have taken it slow while enjoying most of the journey. the one thing that always got to me before we set our money straight were the “golden handcuffs” of decent paying jobs while spending most of what we earned to eliminate the CHOICE to continue or not.
FI has made it easier to come to the workplace knowing that big brother no longer has me by the short hairs. i’m hoping to coach others to find the same freedom in owning their lives. it’s easy for the readers of these blogs as most of them already agree if they’re here but trying to reach friends and acquaintances could prove challenging. trying to have some of them take baby steps without stepping on toes.
“…if they’re here but trying to reach friends and acquaintances could prove challenging”
I used to try to persuade others, but now see it as a quixotic task. When the student is ready, the teacher will appear. If the teacher appears prematurely, the student will ignore everything and even possibly get mad.
Outstanding post. Your language on purpose is a missing piece on many blogs that are out there. Thank you for exploring this further. Any thoughts on what could take the place of the “RE” in FIRE? FIFTDPW – Financially Independent Free to Do Purposeful Work doesn’t have the same ring to it 🙂
As someone who is in a position to FIRE, I am going through a lot of hesitations as to whether or not, not working in a more traditional sense will provide the purpose I seek. It’s reassuring to know you went through something similar and have found it.
I think of “retirement” as moving onto your passions rather than working in a place you don’t particularly enjoy. Or maybe traveling the world. My husband and I are going through this “maybe we’ll try this…no maybe this would be more interesting…how about we try both?” phase of the journey. We have around one year left (give or take a few months) before we feel comfortable with early “retirement”, so we’re trying to plan things out.
I’m thinking it’s probably better to have an idea in mind about what we want to do before we actually stop what we’re currently doing.
Freedom to chose the “work” we do, for the “purpose” that matters to us.
To me, that’s what it’s all about. I’m 184 Days From FIRE, and can’t wait to reach the starting line.
Whoah, 184 more days! The Final Countdown! Queue the music!!
I really enjoy working but I hate the rigid schedule and the tight deadlines. That is why I am pursuing FI but not necessarily RE. I just want the freedom to do whatever my little heart desires:)
Caroline recently posted…Income, Expenses And Goals – November 2017
I’ve been saying this since I first heard the term FIRE. It’s about doing whatever you want with your time. Not “retiring.” I’d love to run my own business. I’d love to spend my time “playing” outside, even if I get paid for it. I’d love to help people solve their own problems, I can get paid for doing all these things. I don’t want to retire, I want to live on my terms.
Jason@WinningPersonalFinance recently posted…My Wins and Losses From Buying a Condo at 24
This is one of the best explanation I’ve come across so far, on why how we see work isn’t always ‘the right thing’. Like the difference in perspective of when you do work, but instead of money being the reward, having a purpose is the reward. Finding both in one instant is a dream coming true 😉
Funny. I was goal driven up until the day I walked out of the office 5OCT2012. Now I mostly futz around and I’ve never been happier. I have a couple projects that “I’ll get to” but there is zero sense of urgency in my life. I like it that way.
Financial Velociraptor recently posted…Financial Transparency as of 30NOV2017
maybe we should rename it ˜financial independence / quit your senseless job” FIQYSJ ? awful.
“Financial independence / work as pastime” FIWP ? i dont know. 🙂
i agree the word “retirement” may not be adequate. MMM has had trouble with it and the so-called Internet Retirement Police.
LazySod recently posted…Balanço – Novembro/2017
How about FI/ME. FI is usual, but ME is Meaningful Existence?
I really like my job, but I sure hate to get up in the morning! Would love flexibility, but also know I need to work on ME prior to leaving my work. Isn’t that what you say is needed prior to FIRE anyway? Lol
I see what you did there… Mr. Tako asks how 10 million dollars would change your perspective so you had to go with 100 million, 🙂
Your list is my reasons for FI – more time with friends and family, choosing when and where to work, more smiling and a dash of world improving.
I like some parts of the work I do 9-5, I don’t like the feeling that it’s a battle sometimes. I don’t like commuting. I don’t like that I’m trying to squish seeing people (friends and family) into the week between Christmas and new years.
Chances of a big pay out are most likely from stock from the 9-5. Until then: earn, save, invest is my plan to get to FI, and enjoy the squished time with friends and family on the journey to get there.
I really have to point out that maybe less than 1% will eventually find the perfect job you will want to work there until you die according to researchers. Most of us would quite today if wd could afford to do so.
I tried so hard to FIRE that I lost my health, friends, wife and had a severe depression which almost killed me. I wouldn’t spend a penny anymore, no coffee, no beers, nothing.
I still haven’t got there and I really want to asap and just for what? NOT HAVING TO WORK A DAY IN MY LIFE ANYMORE. I GAVE UP OF EVERYTHING FOR THAT so I didn’t like to read the money is the easiest part… Maybe for u lucky friend.
I’m sorry that things haven’t gone according to plan. But do know that I put in 80-100 workweeks for almost two decades. I also had $60,000 in debt coming out of college. I’m very happy with my life, but I also worked very hard for it. Luck (besides being born in a first world country) had little to do with it.
First of all the word retirement should be banished to hell. I hate it. I prefer transition. You are transitioning into something different. The old thought about work was you went to a job for 40 years, then it ended, usually with a pension and then you sat on the porch watching the world go by and died. Today you may do a job in a field you are trained in, and then move into something else. You may take a few years off and then transition into something else, and continue this cycle for many years.
I am late to the game but really am grasping the idea. This past week, I realized I cannot continue to work for the really moronic boss and really stupid company that I joined 3 years ago. I just cant. I realized that I am just whoring out my talents for a check and it makes me sick. So I have decided that I will be transitioning into something else at the end of 2018. I need to get a few housekeeping things taken care of and then I will be on my way. I started taking classes in my new field and should be ready to go by 2018.
The funniest thing is that I have a real sense of peace about my decision. I am actually really happy for the first time in 3 years.
Damn, this is good. I love how you identified a problem, decided that you weren’t going to put up with it, and make a plan to get the hell out. I can’t wait to hear how it works out!
I’m really, really good at not working :-). The RE part should be easy for me, the FI part just takes to damn long though (at least it feels that way). What am I going to do when FI? A lot of things, but nothing will come close to that thing called “work” or anything that I have studied for (not that I didn’t like my studies, on the contrary, just done with it. Need a new challenge)
Team CF recently posted…Let’s have a drink!
Teach me your secrets.
Driven people can still.. do nothing and be happy 🙂
I work hard out of personal integrity. Always have always will. But when my investments are high enough I will happily stop working and do nothing productive until the urge hits me 🙂
I worked from 14-39, took off two years and am back in the grind for a few more. The two years off were tremendous fun.
Yes, there’s hope for me then! 🙂
YES! There is hope for me then!
For the most part, when folks in the FIRE community talk about retiring early, they are talking about leaving their primary career, not ceasing all bodily functions that require an expenditure of energy. It’s kind of unfortunate that we (FIRE people) still have to keep having this same conversation over and over.
Good post Carl! Technically I’m FIRE, but I still feel like I work just as hard (if not harder).
It’s no where near being ‘bored’ If anything, I have too much going on!
Mr. Tako recently posted…November 2017 Dividend Income And Expenses
We FIRE’D @ 2.5 years ago. I started a blog that I just didn’t have the passion to continue.
Here is a brief update.
My husband became depressed. This went on for the first 1.5 years. It was a tough time for both of us. I tried to help encourage him. This only aggravated the situation.
So, I did what I have always done. I prayed. God answered.
My husband was a long haul driver. He no longer had his phone ringing off the hook from his buddies wanting to share their latest road tells. Nor, were they calling to get his advice on the best route to take, best mechanic to use, latest gadgets that make work easier, etc… All of his relationships with friends were work related. He never had enough off time to cultivate relationships beyond immediate family.
One wonderful afternoon he was cleaning out the garage. And, God worked the miracle that answered my prayers. 🙂 The owner of our local (6 miles from our home) FedEx Ground stopped by; he asked my husband if he would please help him out. He said, he had a short run that he desperately needed filled. The run involved driving to a neighboring town 1 hour away. There he would swap trailers and, head back home.
My husband is a man that loves to help someone. He couldn’t say no. Too, it put him back in a New Peterbilt!
The roundtrip was 2 hours. Can you believe it? 2 hrs driving a New Peterbilt everyday?
Then, about 6 months later another short run needed filling. It too is in a neighboring town. Now, he drives 4 hours a day. 🙂 Ahhhh, 4 hours. :)))) Too, they have started calling him and, asking him to road test newly hired drivers. That is fun and, easy money for him. Next, they have asked him to drive trucks to the mechanic shop and, drop them off. The shop is 75 miles away. They also asked if I could drive up with him, to bring him back home. Which they compensate me nicely and, I get to go to a larger city; something I wouldn’t do otherwise. 🙂
While we are there we do a little shopping/eating, makes for a nice day together.
I started another blog. Not FIRE related. It is called Jesus on the inside. I don’t think I will be writing there very often. But, I hope to be inspired at times to share my faith.
Holy cow, this is a great story. And one thought I’ve had recently is this: A much better way to approach retirement, if your job will let you have it, is going part-time. You can still maintain some of the social contact and regimen of a job, but on a smaller scale. If I had to do it all over again, I would have gone part-time much sooner.
I agree the FI and the RE are truly different. They got paired up a little too strongly at some point.
I’m FI. I used to strive for RE, but now that I could I don’t want to. I like my work. It provides a social connection. I help people at work. I use my brain. They treat me well and pay me well. Being FI does give me options though. I’m taking advantage of one of those options by cutting back to a 3-day workweek. I’m hoping that will be the best of both worlds for me. Time will tell.
Well said!!
Thanks, Hatton1,
You were one of the people who got me thinking about a 3-day work week!
Good points. Idle hands are my biggest concern with RE. Also, losing my work family. As you say, There are benefits to FI other than RE.
I needed this today, a lot to contemplate this month
I know quite a few people who don’t like to use the word “retirement” for that very reason. It’s almost like they consider retirement to be a black-and-white time of zero work and all play. But people need to be fulfilled with purpose. We aren’t all going to build ship models during retirement; some people might just pursue work they really love.
Mrs. Picky Pincher recently posted…What A Frugal Weekend! December 10
I think we who write about financial independence have a dilemma. Yes, the word retirement sucks and isn’t accurate for most of us (as you eloquently explained here). But if you’re trying to initially reach people – it’s a word that’s widely known and associated (at least initially) with the direction we’re trying to nudge people in. So, my best resolution (for now) is use the word up front and then quickly switch to something better.
Chad Carson recently posted…How He Left His 9-to-5 Job Using Vacation Rentals Near New York City
I agree with the “retire early” not quite describing it. It is more like trading a job with a salary for self employment. I have wondered about the FI writers who have monetized their blogs and/or found other vocations that simply don’t have a salary attached (eg. landlording and/or rehabbing properties). The FI gives them freedom to take different financial risks, but few stop and simply live off what they have accumulated like a true retired person. It is simply having the security to build a business and/or make less longer term.
I really enjoy working but I hate the rigid schedule and the tight deadlines. That is why I am pursuing FI but not necessarily RE. I just want the freedom to do whatever my little heart desires:)
Exactly.
Wow, your article has a lot of good points! I like the idea of financial independence with options.
I’m reaching for FI but not necessarily RE (unless 57 still counts as RE 🙂 ). Maybe it’s because I am single but I like the stimulation work provides. I work for an organization that–while far from perfect–does positively affect both the U.S. and the world. I make a good salary and have good benefits. I think I am one of the weird people who if you gave me a million tomorrow I would still show up to work the next day. Thanks for the pondering of a good topic!
I previously missed some of the details of your IT background. I, too, learned COBOL in college, but most everything over the past 25 years has been self-taught from VB6, to .Net, to HTML, and on.
I really like my job, but I sure hate to get up in the morning! Would love flexibility, but also know I need to work on ME prior to leaving my work. Isn’t that what you say is needed prior to FIRE anyway? Lol
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This is one of the best explanation I’ve come across so far, on why how we see work isn’t always ‘the right thing’.