You may have heard of the FIRE Movement - Financial Independence, Retire Early. According to Investopedia.com, “Financial Independence, Retire Early (FIRE) is a movement of people devoted to a program of extreme savings and investment that aims to allow them to retire far earlier than traditional budgets and retirement plans would permit.”

This concept originated back in the early 1990s, but didn’t really become well-known until the mid-2000s. Today you’ll often find people in the financial realm on social media glorifying their pursuit and dreams of FIRE. 

However, the reality is less fun. 

Because of the extreme savings required, it often precludes people from residing in high cost of living areas. Additionally, the savings goals might mean years with minimal vacations, not eating out for weeks at a time, and other commitments that can negatively affect one’s mental health and social life, like scrutinizing one’s spending and finances until becoming neurotic. Yes, I know a couple people like that. Or, their investments require extractive-level of return in order to completely provide for them in just a few years; and those types of returns concern me from an ethical standpoint.

For those who are able to retire early following the principles of FIRE, they often find themselves bored, unsure what to do with their time. Or, they become a little too extravagant, and suffer some poor years with their investments only to end up needing to go back to work. The opposite happens as well: they’re afraid to spend any money, so they continue the pauper lifestyle, often still working long and hard despite not needing to. 

Because of the challenges and the drawbacks with FIRE, I propose a more moderate approach. Yes, I agree that consuming less is better for both one’s finances AND the planet. And, living below your means is critical to being able to save and invest for big financial goals, but your prime years needn’t be all about restriction and living like a monk. 

That’s why I take the approach of saving at a comfortable rate while maximizing earning and ethical investing, and working towards an intermediate financial goal–in addition to retirement–such as a few months or even a year-long sabbatical. Whether you leverage that time and financial freedom to get a degree or learn something new, travel the world, raise kids (beyond any paid parental leave), or live in a van and hike every National Park in the lower 48, there are just some life experiences that can’t wait until (even early) retirement. 

Furthermore, breaks, novelty, and social connections are fundamental to psychological wellbeing, but so is work. There’s something inherently human about working, contributing to the world, and being valued for our time and skills. Even people who’ve achieved FIRE typically still work at something (many have media, real estate, or consulting businesses). 

Ultimately, that’s why my approach is based upon finding a balance between having a good life now and planning for a better future.