Why People Hate the Fire Movement - Understanding the Criticism
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- เผยแพร่เมื่อ 26 มิ.ย. 2024
- FIRE (Financial Independence Retire Early) Movement is controversial. Some people love it and some totally hate it. The quest for financial independence is real but some people argue that the benefits of F.I.R.E. movement aren't.
So, why do so many people hate the FIRE movement? I will talk about FIRE movement criticism and more in today's video.
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Retiring at 55 to 57 is very "doable" if one starts by 30.
Many people say you can do it in 10 years.
@@Morningdwnld Yes, you are correct!
@@phmiii Thanks
Oh yes. 10 years is all you need. Started at 18 and retired at 30. Didn’t know the term FIRE at the time, my goal was just to escape a desk job.
How nice it must be to live free, to live by the dictates of your own mind.
Not a bad thing to strive for, eh?
I am fortunate to have a pension next year, but we also invested a lot (thankfully) but we fortunately found a balance between saving a lot and enjoying our life during the process. Cut unnecessary expenses, pay off high interest debt, and control your expenses!
Nice job!
I am not aware of FIRE movement when I first started investing some 15 years ago in real estate. I worked hard, lived below my means, invest as much as possible, leveraging and taking risk. With persistency and some luck, I am able to achieve financial freedom at a relatively young age (40s). I still work part time now in the education sector, which is my interest and it gives me some extra pocket money. The journey is extremely rewarding. My initial aim was to attain a better retirement, the achievement of financial freedom at younger age took me by surprise. My view is, instead of living extremely frugal, being deprived from all joy of life just to reach FIRE at 35 years old, one can adopt a more balanced approach by aiming a better retirement. This can be done through prudent spending, finding extra income, increase saving and investing. You may be surprised by the outcome!
I agree! Everyone finds there own balance between saving and spending. Thanks for sharing your journey.
@@Morningdwnld Thanks for your videos. They are interesting and useful. I find resonances as well.
@@limy0018 That's great to hear! Thank you.
For me, practicing the FIRE movement does not mean living poorly. It just means being wise in spending my money. (As an example, I buy gold jewelry rather than fashion jewelry because gold lasts longer, has resale value and looks good on all types of clothing.) When I reached financial independence and has my money working for me to earn more money through investments, I still continue working, knowing that I have a choice to quit my job any time I wish. That mentality really helps to destress whenever I am facing pressure at work, the thought I can walk away any time I want gave me a different perspective to working and enable me to work even better knowing I do not need to rely on this job for my livelihood. I believe this is some kind of psychology. :)
That's my experience as well. Focusing on the FI rather than the RE is much better. How did you get there?
All great points!!! How do you stop a spouse from "wanting" to go out to eat so much. Im happy with simple food at home, she would eat out everyday if she could. So eating out or take out 3 times a week makes us both unhappy.
Tell her it will make her gain weight. It will in the long run. 50 doesn't look good for that group.
That’s tricky. Back up and talk about your values and goals. What are you trying to accomplish? If you can get on the same page about that then work backwards toward a compromise.
Maybe also add up how much you spend each month eating out to realize the true cost.
Get really good at cooking. My wife cooks amazing and we try new meals and I don’t want to eat out as much because food at home is honestly better in most cases
@@Jaredathens5678 and healthier!
A couple today starting their careers at 24, and enough to set aside the 22.5k$ (401k limit for 2023) and assuming company match of say 5-10k$ adds up to ~60k$/year. Put this in S&P500 and do that every year till age 45, and that couple will be left with $3m @7% annual return at age 45 for both.
This doesn’t even include any other savings the couple could be doing with after tax $$. So, if you did just 401k, you can be financially liberated at age 45.
Will people do it? 99.9999% of the people won’t do it. Why? Because people can’t commit to something for 21 years and also people want to enjoy life.
100%. The math doesn't lie.
@@Morningdwnld math has been my greatest friend in my 26 years of working. Math never lies. The problem is many think they know math, but most don’t know practical math.
They can’t even comprehend the greatness of compounding. The pain in compounding is that you won’t see much of a change in net worth for the 1st 15 years of a compounding chart, but the knee of the curve is around 18-20 years. After that it is Nirvana. Pure Nirvana.
Yeah if I had to choose retire as soon as you can! Fuck working for a company that doesn’t give two shits about you! Seriously I don’t understand the competition your telling me you rather work till your 65? Then work hard for 5-10 years and never have to work again?! People who talk shit about the fire moment are just upset they were told about it earlier in life!
Yeah or they don't believe it actually works or aren't willing to even try to find out.
Good explanation…I’m about to do it, so thanks for the advices. I’m 50
Cool. What's your plan?
@@Morningdwnld Hi, I have worked for 30 years in IT, saved some money, so I plan to start a business (art & crafts... nothing complicated), to contribute the family budget. My wife still works, so that helps too. I don´t want to sleep all day, just want to have more time for me and my projects. Again, good videos and content, keep it up!
@@cmelendez74 Sounds like a great plan. Thanks for the compliment.
Here's why most people dislike the FIRE movement. The majority of the advice is make 200K+ by the time your 25, save 100K per year for 10 years and be done. The amount of income needed to have 1M+ in your 30s is significantly out of reach of most people.
Fair point. There are a lot of good things to and people can adjust it to fit their lifestyle, age and income.
Great video! I'm 22 and am planning to FIRE, and this video raised a lot of great points!
Glad it was helpful! Keep me posted on how it’s going.
You forgot to mention, that the FIRE movement will require that you become a different person. At the end of this wealth accumulation journey, you will become a cheap, frugal, saver and investor. So when it comes time to deploy cash towards your dreams and goals, you are constantly living in fear of spending and view everything you do in life through the lens of finances instead of through the lens of fun, passion, freedom, or joy.
You didn’t address this.
Good point. That does happen and something people should be aware of.