I see on my Twitter account that the Early Retirement community is winding a lot of people up again by being a bit opaque about the financial facts that underpin the objective – namely, that you need a rather large wedge of cash to be able to do it.
This week it was the Frugalwoods and their 66 acre Vermont abode that was ruffling feathers, and no wonder. I won’t go into the detail, because you can read the article and comments for yourself, but I do understand the annoyances expressed over it. I used to feel the same about Mr Money Moustache and Jacob at Early Retirement Extreme and, to be honest, a whole load of bloggers exalting the FIRE lifestyle, including myself. You absolutely need to have money in the bank to do it in the style some of the bloggers extol. Quite a lot of money. You can be relatively up front about this, like Mr Moustache is, or you can fudge around the issue, as I tend to do. Yes, I did retire aged fifty one on pretty much the same income as I had while I was working – but I don’t think that reaching 51 and retiring readily qualifies as “early”. That, however, is how long it took me to save the money necessary to quit work and not worry about it drastically altering my lifestyle.
I’m not about to divulge how much I had in savings, investments, pensions, cash, payouts and the rest that allowed that choice. But I do recognise that it was a substantial nest egg, regardless of how much I felt that my career, lifestyle and habits up to that point had been aimed toward that goal. I feel I was quite a committed saver as opposed to choosing to “Spend Spend Spend” as I “Earned Earned Earned”, but I was also in the fortunate position of having disposable income to make the choice. Many people don’t.
It seems to me now that it’s quite obvious that FIRE is an aspirational, middle class fixation. After all, in Britain, if you never want to work, if you shun possessions, if your ambition is to life a frugal life and have then all the time in the world to follow your muse, then do it. You can tailor your lifestyle accordingly and you probably won’t starve or live in a bus shelter – but you certainly won’t be living in a 66 acre rural estate in Vermont. However, for many of us in the FIRE community it’s the latter type of lifestyle that’s the goal as opposed to a pretty basic existence.
Our dream is to be financially independent on our own terms. We won’t have to rely on others – either an employer or the State – to determine the financial course of our lives. This might mean that we still set out to generate income, but we’ll be doing it through our own endeavours and we’ll feel that this is more of a choice than a need. Which makes a big difference and, I think, is a valid and worthwhile ambition to have. It’s about taking control, striving to get to the goal you’ve set for yourself and discovering the myriad of ways and options that you have to realise it. You can choose the level of income you want to attain. We like having the feeling that we are captaining our own ship, which is why so many of our Recommended Reading lists are peppered with Self Help and “Be all You can Be” books, as opposed (or in addition) to the collection of Stephen King or Lee Child novels.
So, FIRE is about personal ambition for self-improvement. Other people will have other goals – maybe their ambition will be to improve the life of others before themselves. Maybe it will be just to simply live for today. Maybe it will be to care and provide for their family and community while a job – any job – provides the means to better achieve this. Each to their own, which is the problem with the Frugalwoods interview – God, they sound pretty smug and pleased with themselves, don’t they? Did they really have to shout about what they’ve achieved so publicly, or is that because they have a book to sell? It’s an underlying paranoia that I have myself – while I’d love to advertise the virtues of being Financially Independent and consequently Retiring Early, I don’t want to sound all smug and self-satisfied while doing so. It’s a difficult line to walk. Perhaps I was trying to have my cake and eat it when I chose to go back to work?
I still haven’t turned against being Financially Independent though. Try as I might, in the society that we live in today, there’s very few downsides I can see to reaching that goal.