What the Hell is FIRE Anyway?
Hello FOGA Readers!
So, the definition of FIRE has been under a lot of debate. This is mainly because there are a million variations and abbreviations on what FIRE can be. Between types like FIRE, FIOR, FatFIRE, LeanFIRE, and BaristaFIRE (yes these are all real and legit) it’s no wonder the terms FIRE and Financial Independence are all confused. (If you want a pretty good list of acronyms check out this post by ThinkSaveRetire.)
Today I saw a tweet by that made me think of all of this asking: “Wait a minute, does Financial Independence just mean you don’t have to worry about money anymore?”
Yep. That’s it. No more worry about money or needing an income to survive. That’s all.
When I started this blog, I started it with a post titled, I Am Working to Be Financially Independent, and this was my definition. With all the confusion going around, I figured I would clarify that.
Still, there is genuine confusion on what FIRE is, and also what I meant when I say that we’re working towards it. So, we’re going to look into that.
What the hell is FIRE anyway?
FIRE is its basic term means Financial Independence Retire Early. Seems like a fairly simple concept, but people get very stuck in their own definitions.
Financial Independence
Financial Independence is, as Stephanie put it, the point where you don’t have to worry about money anymore. The more involved definition is when your wealth has reached the point where you no longer have to work in order to live. You can stop working and be perfectly okay and happy for the rest of your life. Definitely a great goal to have.
Do you have to stop working? No. Can you stop working? Yes. That’s all. Financial independence should be the easiest part of this equation.
Retire Early
Retire Early is where the shit starts to hit the fan. Mainly that “retire” part. Some feel retirement is no more working. You cut it off cold turkey, and now you do things like golf, travel, lay on beaches, and contemplate the meaning of the universe.
For others, retirement means to retire from your current job or career. Do you stop working overall? No. Do you stop working in the field or job that made you miserable/unfulfilled as fuck? Absolutely. This is where FIOR comes in. Financial Independence Optional Retirement for those who are unaware. In this definition, you can start a blog, have investment properties, start a business, become a real estate agent, buy a food truck, work for a non-profit you believe in for minimal income, etc. Whatever the fuck you want! The world is your playground. Own that shit. (Mental Note: Swearing more than normal today…)
Then you have many that fall in between those two categories of retirement. Some who work part-time jobs primarily for insurance. Some who want to reach a point where they only need to have a part-time job (BaristaFIRE). There is a no end to the variations.
Screw All the Variations
I am firmly in the camp of screw all the variations. It honestly doesn’t matter. Are you working to be financially independent? Great! Do you want to retire in some way? Awesome! There’s a reason it’s called personal finance. It’s personal. Everyone has a different plan/way they want to live.
The whole point of FIRE, FOIR, and any of the other acronyms is freedom. That’s it. The goal is to have the freedom to live the life you want. You’re not trapped in a job you hate or with a boss you cannot stand. Or you’re not trapped with the worry that if there is a change in management/culture, you are out of a job.
Getting lost in the types of FIRE just takes you away from the point of it. Just do what works for you and everything works out. If that involves living a frugal lifestyle that’s great. If that involves a side hustle then that’s awesome. Getting a latte a couple of times a week? Go you! It’s whatever works for you. As long as it works for you financially and you’re hitting you’re goals. That’s what makes personal finance so interesting. It’s not one size fits all. You do you. Always.
In Summation
I hope you enjoyed our journey into What the hell is FIRE anyway. So what do you think? Do you think the different types matter? Do you just focus on you? Let me know in the comments. 🙂
Until Next Time!
-Ms. FOGA
I’m striving for LeanFI or BaristaFI and definitely will be retiring early. I think too many of the calculations are waaaaaaayyyy too conservative. Like why would I want to work another year or two to go from a success rate of 95% to 98%? If I can go back to high school grading rubrics, isn’t an A an A? Hell, I’d be happy with a A- or a B at this point.
Chances are hiiiighly likely that I’ll wind up with millions in NW, even if I retire in my 40s with 600k because I won’t be spending a lot. And I’ll probably find something fulfilling that just happens to make me down extra money for my efforts in early retirement.
Sounds like a plan. Do you have a date?
Thanks for reading. 🙂
Shooting for by my 43rd birthday, so December 2025
Awesome! Only five years and change to go. 🙂
6 and change… But who’s counting? 😝
Wow. I cannot even count now. lol
Oh my gosh… I love this thread Josh. Who’s counting is right! I love the idea of finding freedom along the way. I heard Mr. 1500 say recently on a podcast that he doesn’t recommend anyone counting down. Then the host was like, “You realize what your name was based on, right?” 🙂
LOL. I am not counting down yet. Nowhere near close enough to do that.
Thanks for reading!
I think you’re absolutely right, and I am FIRMLY IN YOUR CAMP. Who the heck cares as long as you’re saving that money and finding freedom?! 🙂
Exactly! People keep getting lost in the details when freedom is the goal. We’ll get there. 🙂
Thanks for reading!
“Screw All the Variations FIRE” You gotta get that trademarked and printed on T-shirts in time for FinCon! 😂
lol! I will next year. Not going this year. Couldn’t plan for the cost.
Thanks for reading!