Has the FIRE gone out?

Question

The FIRE movement was really hot, no pun intended, early this year and I have not heard much about it. Has the corona virus and social issues moved it to the back burner?

I appreciate its goal and approach, except I do not want to drive a 1998 Oldsmobile.

Has anyone reached the goal during all the craziness? How are people doing living FIRE.

Ben Zimmerman · Answer

FIRES aren't easily extinguished, the lay dormant waiting to be rekindled. FIRE was a big deal because it was trendy, and because we were on a decade long bull market run. So when people saw this success, they wanted to read about it and jump on the bandwagon. Unfortunately many of these people reading about it were the same ones that make New Years resolutions, and don't have the personal fortitude to actually stick with anything. Once the economy crashed and these people became disinterested, they stopped clicking on all of the articles about FIRE, and consequently agencies stopped running FIRE articles since they aren't profitable without readers. However I would argue that anyone serious about FIRE, has become even more serious about it once they witness a global pandemic like this that can suddenly cause serious financial stress on the entire world. When you are 100% reliant on your job for an income you see just how fragile the system is and how quickly you can go bankrupt with a 15% unemployment rate. You wake up every morning wondering if your factory will suddenly be closed for health reasons and everyone be out of a job. You constantly log into the governments website anxiously wondering where your stimulus check is so that you can pay bills, instead of being financially stable and viewing that check as an opportunity to buy 1200 worth of cheap stocks.I've seen some crazy FIRE bloggers, one actually advocates eating canned dog food because it's a cheap source of protein. You don't have to go to such extremes when it comes to FIRE, you just need to be mindful of what you are spending. So you don't need to drive a 98 Oldsmobile, but maybe you drive a 2015 Ford instead of a 2020 Porsche. As for my finances, none of my rental properties had trouble paying rent. This is due in part to luck obviously, but also due to not catering to the lowest common denominator in C-D rentals. My stock portfolio is breaking even as opposed to what it was prior to the crash. Yes I lost some money during the crash, but you adapt and overcome and readjust to investing in companies that will rebound very well. So I'm currently breaking even-ish, but have the potential for a lot of runway ahead of me.

Lesley Resnick · Answer

Eating dog-food that, is dedication. It is exactly the type of "ISM" that is developing around the, "moment". Financial indepenance is not the same. My own goal is to develop enough passive income to know that on Jan 1, I have enough to live through the year without getting out of bed. I think it is ironic that Mr Money Moustache made $1m last year blogging and marketing about his austire life style.

Steve Vaughan · Answer

I'd guess since like any large goal, there are more new to it than are established in it. They are also the most vocal about it. Hard to get motivated about lofty 'non-essentials ' with so much going on. Priorities have changed and why's are being tested. Running from something is a weak why and the one I usually hear. So much focus on the from and not the to. The to identifies what fire looks like and most don't know beyond covering basic expenses. To me there are different levels of fire. Skinny fire - clipping coupons and driving your 98 Olds would be impacted more so than medium fire I'd imagine. It's also where the majority of the movement is. What's changed for us in Medium fire is upping and re-allocating our giving. But ive never contributed to fire forums or know where they are. I'd imagine it can be motivating, encouraging and educational. I was just the weird one winging it alone years ago. Felt that way anyway. Like househacking, BRRR, etc FIRE is another very old practices given a cute new name. It will gain momentum again when things are good and skinny fire appears more achievable. It's too important to not return again if it takes a pause for other things now.

Caroline C. · Answer

@Lesley Resnick it's not exactly something with a finish line. Nor is there one path (ie: you can do it without driving a '98 Oldsmobile). We continue to focus on building up our income streams, and dreaming of the travel we will do when borders start to open up again. No plans to go back to 'traditional employment'

Nathan Gesner · Answer

I'm still doing fine. Made more money the last couple months than I normally do this time of year. Closing on another investment Monday and another a week after that.People make money in every market. Find the need and figure out how to meet it. Movies a d chocolate both thrived during the Great Depression.