The Problem with the “FIRE” Movement

[@alessandrasmota]

Love how the Money Guys created a new acronym for ppl that actually like working but don't want to retire, but want to just do something else or reduce working hours: FINE: financial Independence, next endeavor.

[@MattMcConaha]

Pretty closely related to the existing ideas of coastFIRE and baristaFIRE, both of which are essentially that you gain something at least close to financial independence, and then switch careers to something probably lower paying but more enjoyable.

[@xfruan]

@@MattMcConaha Why switching career? Why not find a career that you enjoy and pays well? It may not be the best-paying job you can find, but it will allow you to build up your wealth while enjoying your daily work.

[@PAULBMX1993]

​@@xfruanmy understanding is that coast FIRE is exactly that. You can keep doing anything you want, which may be really high paid. Barista FIRE is more an aim for people with high paying, high stress jobs. So if you don't want to stay in that, you can hit a point to quit and go follow a passion that may not pay well, not to say you can't get well paid but you don't have to so you choose without money being a factor

[@andratoma9834]

@@xfruan what planet are you from? Enjoy your work and be paid ENOUGH TO INVEST enough to retire in ten years? Maybe some overpaid CEO

[@christophermiles5419]

I don’t want to retire early. I want the ability to retire early. The FU state of mind.

[@AMan7595]

This. I would get so bored without work. Work isn't inherently bad. It is the ability to leave a bad work environment without worrying what I want. The ability to say FU to my toxic management and go find something better.

[@BeeTimesTwo]

Same!!

[@will-zj5gq]

@@rhondavigil795blessings

[@LB-fs2tm]

We called that "F*CK You Money" in our house.

[@rokyericksonroks]

Yes, the ability to walk away. Some call it freedom.

[@xmochix604]

Financial Independence is the key. Whatever you choose to do is up to you! No one wants to be tied to their job.

[@AnnAndNala]

🎯

[@michaelwiebeck3]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[@Rachadrian]

as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management

[@Derekhoffman312]

Having an lnvestment advser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $220K so far, that made it clear there's more to the market that we avg joes don't know

[@Olsontim21]

How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings

[@Derekhoffman312]

I have worked with a few financial advisors before now but i ultimately settled for 'Annette Christine Conte'. She is SEC regulated and licensed in US. You can easily look her up

[@Olsontim21]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@LB-fs2tm]

FIRE definitely has it's pros and cons- it's about having total freedom of choice. My husband and I actually think FIRE is a great compliment to your (Ramit's) concepts for financial security. Going through FIRE won't make you happy, in fact it gives you more choices which can feel daunting at times, but honestly, it's AWESOME. Once you FIRE, it's freaking cool. We suggest people begin with FIRE, get their crap together, actually learn how to manage their money and their impulses, learn how to scale back and be intentional, then once they achieve financial goals and develop discipline, they transition to Ramit. The problem with just starting with Ramit's plan is that he doesn't stress discipline enough and people hear "live your rich life" and go full-tilt. People often miss (or intentionally ignore) the parts about discipline so they don't learn the basics or how to control their impulses and rewire their "consumerist" brains so they can spend intentionally- an essential part of financial independence. We feel, Ramit is great to help you relearn how to spend money POST-FIRE. FIRE really helps you break bad habits so you can develop new skills. Just thoughts from someone who has done both. We love both and think they actually compliment each other well.

[@blikewat3r]

Agree with this 100%!

[@username00009]

Interesting points! I have noticed the same thing - Ramit doesn’t focus much on discipline but careful observers will see that he promotes it through his interviews of couples. He just ignores providing coaching on the how.

[@marcusgadau]

Ver well said

[@TheGreektrojan]

@@username00009 Ramit has said in the past that the nuts and bolts are pretty simple and that most people understand how to cut costs, and plenty of other creaters focus heavily on that half (the bulk of the industry). Ramit just found/evolved his niche to people who reached the next step/have disposable income and can think higher level about it.

[@TheCelmap]

That's the correct order regarding FI. I would say start with Ramsey plan first for the snow ball plan if you are in debt, save for emergency and sink funds then jump to FIRE movement. You don't need to hit traditional or Fat FIRE because the process is super long and bit daunting unless your income is extremely high. Coast, barista and lean Fire should be more adequate since the time frame is shorter, 7 to 10 years should be the norm to save/invest aggressive then jump to Ramit's plan once you reach you FIRE number. You don't need to stop working completely, reduce the hours if you want or shift to entrepreneurship if you have the skills. After you reach your FIRE number you can live your "rich life" intentionally. I'm in this position right now and I still in my 30's, only took me 6 years to reach my FIRE number (barista).

[@Tchild2]

I just make sure that I save 20-30% of my income, then I buy those lattes, first class tickets and drive my Mercedes. When I think back over my adult years, it is all a blur, time melding from one year to another with few notable moments. The only thing that helps me keep time and what I truly cherish and remember are the memories I have had traveling with my family and friends. Everything else is just a fading mirage. In 2015, I just went out and bought tens of thousands of dollars worth of outdoor lifestyle toys: Camper, motorcycles, truck to pull camper and we went out with out kids to Moab and other beautiful spots around Utah for the next five years. My kids are now grown and gone and I now realize that was the best money I spent....ever. You cannot get your time back and when you are older, you realize that time is the most valuable commodity anyone has. Save, but don't exchange time for money.

[@ramitsethi]

Beautiful. I love how you have a specific savings target and you also prioritize living a Rich Life

[@josephj6521]

Beautiful way to live. Time is more precious than anything. It cannot be traded. We all share the same amount of time. I’ve lived a similar lifestyle. I save 20% to 50% (depending on our needs) and the best memories are our outings, holidays and experiences. Seeing the faces of our little ones when they experience a new adventure is priceless. My parents were too busy making money and I made sure not to follow their behaviours.

[@Jack-zv6ht]

Saving more money will allow you to save more time. 8 hours a day at the job, if you think about it, that's like literally 1/3 of your life. Then you calculate time spent commuting to said job, preparing food, and sleeping, you actually worked far more hours. Think of what you could do with those 8 hours back, with money in your pocket. Live like no one else for a few years, so you can live like no one else.

[@Ladyrosieparks]

Love this

[@financiallysparkling]

Totally agree! I love this! 💜Time is the greatest currency that we must learn to use to its fullest; filled with happiness and memorable moments.

[@andresgarciacastro1783]

Most good stuff in life isn't expensive: a nice dinner with friends, playing board games, playing instruments, dancing, painting, playing videogames, hiking, biking...

[@MooMoo69556]

Loser hobbies.

[@baker8674]

All sidequests until you put a house, car and Kids....these are the ones most people get problems...

[@MooMoo69556]

@@andresgarciacastro1783 those hobbies are bogus. That’s for brokies and peasants

[@andresgarciacastro1783]

@@baker8674 I agree, housing is the biggest expense of most people and it should be the focus of every government to lower the price although they wont because they are extractive elites but i was talking about his part of "having great experiences". Everyone should take a good look and redefine it, because we've been sold by social media and companys that we need to spend lots of money to be happy. Also, the fact that you need to own a car is soo sad. American urbanism makes you soo poor and you don't even notice.

[@sunnycat8955]

​@@baker8674 then dont do it

[@andrewdaly286]

Never thought about this in this way. I personally started my fire journey the wrong way, I was letting it dictate what I ate and did for fun in order to maximize savings. I still am striving for FIRE but now have a healthier relationship with money and save as much as I can but splurge on things that bring me happiness.

[@MsFallenPrime]

Exactly! It's about making conscience decisions - I dump about 40-50% of my income into my investment portfolio, however I don't shy from a trip across the world when I feel like it (going to Japan in a few months, for 3 weeks) living in The Netherlands. The same for going out or nice dinners, when actually doing something I don't hold back "because of money".

[@Monkey_G5]

Was one of those people that invested 65% percent of their income for 5 years, thankfully you have taught me to relax a little and enjoy my rich life. Thank you Ramit!

[@Monkey_G5]

@@SAM-t5s By knowing my numbers and hitting them, I allow myself to indulge with the remaining income. I am no longer on survival mode trying to squeeze every cent, which on its own has been relaxing.

[@TheCelmap]

​@@Monkey_G5hi friend I get your point, however, your big sacrifice on the past put you in a better place right now and there's no problem about it. That also mean you're trained to live in survival mode if necessary because you've been there already and that's an advantage. Now you can spend more money because you deserve it 🎉.

[@ghjong001]

In between Fat and Lean FIRE is Coast FIRE: you buildup assets to reach your crossover point, and then dial back hours and stress while figuring out your next steps. The other thing to remember is that retiring early doesn't necessarily mean at 35; it can also be 50, 55, or 60. SSA considers 63 'early' retirement, and 67 'full' retirement.

[@pfifltrigg]

I want to retire early but don't consider myself FIRE. I'm aiming for age 60-62.

[@chrisharris4223]

Coast fire could be lean fire or fat fire, it is not the amount but the pattern of saving…

[@muffemod]

Coast FIRE is just still working.

[@babyfreezer]

​@@muffemodyes they have a sub category of coastfire too actually... BaristaFIRE! Basically you work enough to cover your expenses and just let your investments carry on doing it's thing

[@xaldath4265]

IMO, Coast FIRE isn't actually FIRE. It's an optional step along the way, but if you still *require* earned income, you are factually not FI. That being said, something *like* coast or barista "FIRE" is actually my plan. I have no desire to "retire" and do nothing but leisure activities, but I have less desire to go to a job I hate just to pay my bills. I want to be productive, but on my own schedule. And before anyone suggests self-employment, I also dont want that stress. 😅 Dont worry. It's going well.

[@maxpayne7419]

I hit FI in my late 40’s and retired at 54. Time freedom is a beautiful thing!

[@Ebizzill]

do you think it's possible if starting in mid 30s?

[@dking1362]

Absolutely agree. Retired at 57, and having TIME is definitely the best part. For so many years, I had to be on survival mode - go, go, go constantly as I cared for and worried about others. It has taken awhile, but I find I am enjoying the more relaxed pace with which I do most things now. I notice more, I enjoy more, I think about choices more. It sounds like a cliche, but I am truly just more present and aware in my life.

[@dking1362]

@@Ebizzill You definitely can. The key is to live below your means. I am a single mom of 3 who never made more than $63k (public school teacher.) You CAN enjoy life and live simply and relatively inexpensively at the same time. Good luck!

[@rebeltheharem7028]

Yeah, it's not that I want to retire early, its just that I want the financial freedom to know I can quit my job at anytime and essentially have unlimited time for find something I actually want to do. Not all of us are blessed with liking our jobs, and do it out of necessity. Someone mentioned in another comment, but I think "Financial Independence, Next Endeavor" is probably a much better mindset or movement.

[@MNP208]

A new term I recently learned is "Barista FIRE". You work until reaching the crossover point, then continue to work a part-time job. I tried retiring in my 50's, but quickly realized I wasn't ready to fully retire. I enjoy my job even more knowing that I get to pick and choose when I work. We travel and spend time with family when WE choose, not when our employer chooses.

[@serialmigrant]

It's actually reaching half your fire number. So you can cover half your expenses with your barrista part time job. Not reaching the cross over point.

[@coya8coy]

That’s what I’m hoping for. I want to put more effort into my community, but most of the work is voluntary and I need to pay bills by working full time. I’d like to get to a point where I only need to work part time, with more time to do other things in life.

[@MNP208]

@@serialmigrant Ah, I thought it was just about working when you want to.

[@Putseller100]

Don't get hung up on specifics, barista and coast are too similar and I heard too many arguments about what they are and are not. If you do not need a full time job you are going in the right direction and are coast/barista.

[@joshuabritt5677]

Here's a good one as well. Financial Independence Recreational Employment.

[@eldanielromero]

Being ultra frugal was the best thing I could have done in my early 20’s. It’s easier to train yourself to spend, than it is to train yourself to not spend. It feels more rewarding this way.

[@TheCelmap]

100% agree.

[@TheCelmap]

100% agree.

[@StephenLester-kl7oy]

It’s about moderation. Being ultra frugal, working hard, and then you die in a freak accident. When you could have spent some of that, maybe you are at 80% of you could have invested but with a better quality of life. It may be easier to go super frugal than to have to wrestle with what to spend things on, that’s the muscle he’s talking about.

[@eldanielromero]

@@StephenLester-kl7oy that’s why I specifically mentioned my early 20’s. I think it’s crucial to value the dollar young, to learn how to save, learn how to invest, to build the foundations first. Most 20 year olds do not have a family to support, so this is the time to build the best foundation you can. I’m 30 now, and guilt free spending for me means I can now spend while my net worth increases regardless of my spending habits. This is a good feeling and not the same guilt free spending I could have done 10 years ago. And I attribute this “success” to my focus on saving as a young adult.

[@lowlowseesee]

I would have to see the data on what is easier to do. that said I agree lol

[@rpguitar]

I retired early at 54, after learning about FIRE and how the math worked at the ripe old age of 52. On one hand, I wish I had been more intentional about this goal when I was younger, as I would have retired sooner. On the other hand, I never led a life of deprivation and I didn't obsess over my "number" for decades like so many younger folks do. Ultimately, I think I'm grateful for where I ended up and how I got there. This was an insightful and fairly presented video, Ramit. Well done.

[@blanketwodahs6741]

I agree. I expected to not like the video but I agree with everything he said. I am also in the category of "managed outcome", balancing income taxes vs debt vs saving. However, my wife never agreed with my aggressive financial goals. What should I do? Divorce her? Over that? No ..... Instead we just compromised to commit to some annual targets while allowing spending on "life" outside of that. As long as she worked with me on hitting those targets, I never objected to any spending. We have enough at this point for me to quit working, but I am sticking it out a few more years to get the kids through school. Meanwhile over all these years we have spent money on "shameful" things like cars and misc toys we enjoy, and in the end we built lifelong wealth just fine. Absolute no need to make oneself miserable to get there...

[@Tonemind]

Can you explain further on what you did? I'm turning 40, no investments

[@blanketwodahs6741]

@@Tonemind For my wife and I, it is almost entirely 401k type accounts. We are in 34% marginal tax bracket. My wife's job has two "401k" accounts, so we have access to three of them currently. we fully funded those accounts (and some IRAs while we could, we are priced out of those now), and as they are income tax deferred, every $1000 of pay is ~$1340 invested. Plus we get company matches on top of that. The idea was if we had money leftover from fully funding all those accounts, we'd focus on paying down debt, but that never happened. We save almost $100k per year diverting income in this manner, and as such, not much paycheck is leftover beyond expenses. Still, we are immediately positive by around $35k per year in tax savings alone (investment returns are extra), and the house only costs us a little under $10k in interest. so the debt loses priority every year. but at this point we have so much stashed away there is no concern about repaying the house or anything else we have. this year alone our retirement accounts have gained as much as we owe on the house, and its only July. I don't expect this strategy is common for FIRE types, but it still works

[@Debtfreedvm]

@@Tonemindread ‘The Simple Path to Wealth’ by JL Collins. You do need to have investments but he explains an easy way to decide where to put them. Good luck!

[@patriciagolding7092]

@@Tonemindwe retired at 50 and 60 and started past 40. It went like this, max out 401k. Then got intentional, set a budget ( that took months to perfect, kept trying) then we paid off our debt using Ramsey baby steps, then we started putting money in our after tax accounts. Then in 6 years we thought we were in good shape so we lived like we were retired and didn’t spend a dime of income. It was all saved. Then we studied health insurance which is horrible in Texas. Then we set the date and pulled the plug. The key is to be intentional and out of debt. Start today.

[@e22ddie46]

As someone who started with lean fire, i started listening to your videos as a way to allow myself to spend money last year. I'm certainly not lavish by my incomes levels, but its certainly let me chill out.

[@BBQHellvampire]

I'm grateful I stumbled into a FIRE community 4 years ago, helping me set goals and starting my personal finance journey. But I also started noticing these negative sides that you mentioned which I'm trying to be mindful of. Great video putting it all together, both positives and negatives!

[@MNP208]

Yes, it's the guilt they feel about spending. I want more than one spatula in my house. 😊

[@dc1674]

I did Fire. I stll save 50%. no debt. My lifestytle is fine. I still work to not be bored and lazy. The only " thing" that I want but dont currently have is a slightly larger apartment with a view. Other than that, no complaints.

[@ryebread447]

Why not a home? (House)

[@dc1674]

@@ryebread447 Houses are higher maintenace. I dont like yard work, home maintenace or space I dont use and I do like being on a high floor with a view. we often travel 1-2 months at a time so with an apartment you just lock the door and go. For me a 2000sq ft modern apartment with a view is just perfect.

[@hman2912]

I could think of a heap of different ways to not be "bored and lazy" 😂

[@dc1674]

@@hman2912 Yeah. You can think of them but sometimes reality is a bit different. Even doing sports 3 times a week and traveling I felt pretty useless and even guilty. At 45-47...none of my other retired friends are close to my age. All my friends, even the wealthy ones generally have obligations. overall I'm healthier and happier working.

[@cloutm_anager8262]

@@dc1674what about doing heavy amounts of volunteering? That’s what I plan on doing in my retirement to itch the productive part. Also, why is working out, sports, travel, and family not taking up more time??

[@JervicJosh]

I love what you bring to finance. It’s such a refreshing perspective. You’re a legend Ramit

[@Ayobussa]

You’ve become my favorite money mentor. Thanks for this and everything you do!

[@masterfiddler11]

FIRE has always been around, though not as an established community. I appreciate Ramit’s recognition of both positive and negative sides to FIRE, but I also think he’s way too focused on the original FIRE community, whereas there’s an enormous number of people living it uniquely today. I definitely appreciate this video for demonstrating the balances though!

[@ramitsethi]

Good comment! I appreciate that the FIRE community has changed over time. Thanks for watching

[@lowlowseesee]

unfortunately we have seen people my age who are part of the old community who dont know how to spend at all. one of them had ramit on her show. she had no spending skills with millions of dollars. shit was sad

[@lowlowseesee]

also what you are talking about fiddler...is at 7:50

[@masterfiddler11]

@@lowlowseesee agreed, it’s definitely discussed here, but the title of the video is a bit misleading. Great video and fair discussion!

[@ayyyejesterdazed]

My aunt retired from the military at 40. But now that her husband is getting ready to leave the military also and the youngest child is almost an adult, she’s preparing to re-enter the workforce with her dental hygienist experience. Using up her remaining GI bill to go from an associates to bachelors.

[@tstcikhthys]

Ramit is so lucid and explains things so crisply and clearly. I already knew about and follow FIRE, but this was a great explainer; nice man!

[@nobnoba]

ive given up on FIRE. because when u have kids, u only have 12-15 years to take them to disneyland and see their gleeful faces. or, u only have short amount of time, to take your elderly parents on traveling, before their hips hurt, their knees hurt, they are too old to travel etc.... FIRE is actually paid by TIME. those time that u cannot get back. MONEY, u can earn later throughout your life. but memories with your young kids and your elderly parents, you will not get it back. Think of that, people.

[@polish2x91]

What’s stopping you from having memories for free? Time spent is more important than time on vacation. Your kids won’t thank you for two vacations a year, compared to spending everyday with them.

[@anikojankovits7096]

1-2 children can turn all plans upside down. U can't imagine, and understand until u try it😄🤣😃😂😀

[@lowlowseesee]

@@polish2x91 they have memories for free lol, they want to do fun things that kids want to do lol

[@lowlowseesee]

@@anikojankovits7096 all my brothers have kids. even today one of them cancelled plans for lunch while in town with his ex and his son. I definitely know without trying lol. single with no debt here lol

[@missjoe4664]

@@polish2x91suuure… then your daughter wants to take dance lessons with her friends and she gets to that age where she needs a phone and before you know it, she needs make up… Son needs video games, football games, football gear…

[@shrapmetal]

I had an uncle and aunt who hoarded their wealth. In their final years there was mental and physical decline and one of their children basically robbed them and left them to die neglected and without proper care. Time is our most precious resource and you cannot hold on to material things forever.

[@dmfaccount1272]

When you retire you should be doing mentally and physically challenging things all the time or else your mental status will decline more quickly. You don't have do be doing a job though.

[@rebeltheharem7028]

@@dmfaccount1272 Agreed. Playing critical thinking games, reading, or even going back to school are things that can mitigate mental decline.

[@Jakkaribik1]

@@dmfaccount1272 When you stop doing here and there harder things you loses Potential

[@Jakkaribik1]

@@rebeltheharem7028 School gives you a baseline of Skills once they teach you 10% you are better alone what you can learn on your own

[@The-Dirty-Straw]

Older and less careful... That's exactly why I don't want to work when I'm 60-80s.

[@Fiwithoptions]

I hit FI @43. Planning RE @50 , 1.5 years away.. Wanted to ensure my career ambitions are fulfilled before RE. portfolio multiplied more than 2.5x during last 5+ years.

[@Yieldthief]

Started a cleaning buisness 10 years ago at 25 making around 80k per year!! Started investing/saving 50k per year of that income, happy to say today i am 35 fully retired living off my etf portfolio, because of the fire movement my whole life has changed for the better.. now i enjoy life with my family totally stress free... it can easily be done, our minds are so powerful, be smart ♥

[@trailzrock2]

I get anxiety when I go to people's houses and I see how much stuff they have. I feel free the moment I step into my 420 sq ft condo. I feel in control. I can get motivated quickly to get rid of things that no longer serve their purpose. And keeping it clean is easy. My net worth is only around $650k, but I can see myself being like this even if my net worth was 6 million. I just feel free and in control not owning things. I still buy stuff, but I also quickly give other things away.

[@alistairrobinson3865]

If you do not get pleasure from spending money then it doesn’t matter there isn’t anything wrong with saving it. I’m 42 and am already at x2 my original FIRE number, working same job and roughly same lifestyle, but the sense of peace of mind and freedom is really noticeable. also I’m able to help people close to me with financial emergencies, house down payments etc being financially comfortable when most people around you are struggling enables you to contribute and make really transformative interventions now and again. Great discussion anyway always good to analyze these things 🙏

[@gijns]

How much did you save?

[@demosthenes614]

One thing Ramit missed from most FIRE bloggers is you don't actually need to spend money to be happy. Just as accumulating money doesn't bring you life satisfaction, spending money for the sake of spending doesn't. Most FIRE bloggers focus far less about the money aspects and more about the recognition you don't really NEED many lifestyle upgrades to be happy. And if you don't, and save a lot, you can have freedom, which generally is beneficial. There's a lot more alignment between FIRE bloggers and the conscious spending plan approach Ramit has. It's just approach to the inputs into that are different.

[@username00009]

Yes! Ramit does a great job discerning individuals’ unhealthy money attitudes, whatever they may be. I’d guess that he didn’t miss the point you identified, but he knows that those people are in the minority. Plus, his topic here is the problems with FI 😀

[@kingsgold]

Sure, but that freedom should be used for something in the end. whether it is to take more vacations, see the world, spend time with family, etc. Not having your life dependent on working is great, but the goal of FIRE should be to take back your working time so you can do other stuff that is more personally fulfilling.

[@charlesgair8608]

Who Ever Said Money Can't Buy You Happiness ,"DIDNT KNOW WHERE TO SHOP".

[@rockersamurai]

not everything costs money, I will grant you that, but many things do, even ones that bring happiness, and we see that a lot, even in Ramit's podcasts - people are terrified of spending a dime and being "cheap" has become an identity; it almost seems like spending money has to be villainized for the FIRE philosophy to work. it's a defense mechanism, but you pay for it sooner or later - that's why many fail at FIRE'ing or even the ones that succeed end up being extremely anxious about money.

[@raheelakhtar7]

Mr Money Mustache

[@anageorgina]

Ramit, I have to say... this is your most balanced, most compassionated, most positive video yet. Thank you for showing more of this part of you.

[@ramitsethi]

Thanks for watching!

[@vulpeeze]

I only want to do FIRE so I can still spend extravagantly while i pivot from my well paying career to my dream but lower paying career

[@MNP208]

Research "barista fire"

[@tomaszp2027]

It's more of a recent twist: FINE (Financial Independence, Next Endeavor).

[@lowlowseesee]

you could spend extrav without FIRE though lol. and no one i have seen in fire spends extravagantly because they are putting all their guilt free spendin into investments. then they retire and havent learned spending habits lol

[@user-kpkxgtj]

Same. I want to be able to choose whether or not to go to work, and to work at things I truly enjoy that may not pay much, or pay anything at all.

[@BearingMySeoul]

Same. That's what I thought FIRE was for. lol I started my career in nonprofits, work in tech, and would like to end my career in nonprofits but that will require me taking a 50% or more paycut.

[@plum_colored_dahlia]

I like this generalized advice. 1. Save a min of 10% regularly until you have 3-12 mo worth of expenses. 2. Invest a min of 15% each payday / month. 3. When you have a fully funded emergency account add the 10% savings to the investing amount for a new min 25%. 4. Use the 75% or less for all other expenses and to save up for purchases. If you have high interest debt you may need to pay that off before funding 15% or more for investments or invest a smaller starting amount such as 1-3.% to help with the mindset of disciplining yourself to put something into growing income producing assets. Make needful adjustments to your lifestyle to come into range of these minimums and you’ll create freedom and options you can live with. You will be a blessing to yourself and others and able to prioritize your long term goals and values. Never underestimate the value of good health and the gift of time.

[@damiaothman]

Started out as Lean FI in our late 20s around 5 years ago, and now starting to enjoy the Fat FI life (nearing mid-30s)... My husband and I save 70% of our earnings yet are still able to spend consciously on what matters to us like travelling, eating out, tech gadgets, spa visits from time to time etc. Mainly because we also focus on raising our incomes and investing aggressively. The biggest contributor to building the FI fund is actually raising our incomes while keeping around the same costs of living. As we earn more, we increase the costs of living slightly but not as big as the income growth.

[@Mr._Du]

So instead of following the FIRE movement, you should cut your expenses by 30%, raise your income by 30%, and then retire in 9 years? That's... that's exactly FIRE.

[@aaront936]

He made his money calling a budget something else so....

[@bluezoidberg7124]

Hahaha yes

[@usflin]

Thank you for the summary so I don't have to watch to the end 😂

[@UdoADHD]

@@aaront936😂

[@opiedrums]

Big take away is not falling into the trap of once you are, on fire, that you can't spend the money. He's saying to enjoy the money and don't get caught up in always saving and never spending or enjoying.

[@afterrecession]

Instead of retiring early, I want to find my vocation in life and commit to it until I can no longer do it.

[@rokyericksonroks]

Very honorable pursuit. Thnx for posting.

[@mikezipparo1497]

Thanks this was helpful. I’ve been doing FIRE for a couple years and for me the idea of guilt free spending has been hard to do. I like how you said spending is a skill

[@1pwNz0mb13Z]

As long as your genuinely comtent with spending little money, i think FIRE is great! We've been programmed all our lives that spending money is they only way to "have fun."

[@DanKeeley]

Haven't you heard of fat fire? 😂

[@sherlockrobin597]

In January (when my mortgage is paid off) my expenses will be £266 per month. This is half of the household bills, and doesn't include food which is about another £100 per month, and car insurance (1 shared car) which is about £300 per year, or £150 each. That's a monthly total of £378 all-in. This is down from >£1100 in 2021. It's absolutely possible to cut your expenses to the bone, so that you can, as Ramit advocates, spend extravagantly on the things you enjoy.

[@smann7236]

Do you have stocks shares, hiw much in it? How old are you? Any financial advice to a fellow brit?

[@sherlockrobin597]

@@smann7236 I'm 42. The mortgage is 8 years old, so we'll have paid off a 25y mortgage in less than 9 when it's done. I have an ISA with about £25k in it, all invested in Fidelity Index World, and a pension with about £140k. I've also bought £3.5k of a Solar farm via Ripple which should reduce my electricity bills when it comes online later this year. When the interest rates changed last year I paused investing while I pay off my mortgage but I'll restart in February. The only advice I'd give is to cancel all of your subscriptions (Netflix, Spotify, Sky, everything - you'll be surprised how much is available for free on iPlayer, 4OD, etc.), stop buying new phones and cars - your phone can last at least 5 years and your car much longer - and you should never buy a new car - get a 3 year old model and save 50%. My mobile phone is with Smarty and I pay £5 per month. Don't pay too much for internet - you can get good service for £25 per month. Shop at Aldi or Lidl and cook your own food - don't get food delivered. You don't need a gym - you can run, do press ups, pull ups, sit-ups, steps, for free. Read the Millionaire Next Door - it'll completely change the way you view consumption and what it means to be rich.

[@charleedell92]

As someone who was forced to retire in my 30s due to disability, I want everyone to be mindful that sometimes the decision is made for you, and whilst I loved my job and had never heard of FIRE, I sure am thankful that I'd lived a frugal life and paid off most of my house rather than blowing it on designer clothes or cars etc because now I can at least live with some dignity and security. Nobody thinks it can happen to them but statistically it has to be someone!

[@adtc]

"Everything in moderation" is a good rule of thumb to live by.

[@redav99]

Sure, but also it implies equal importance of everything. Ramit's philosophy is to spend EXTRAVAGANTLY on the most important things. I think it's a significant distinction.

[@jkdanahy]

"everything in moderation, including moderation"

[@josephestepa9268]

Ramit. I’ve been a big fan of yours ever since I heard you as a guest on Art of Charm podcast back in the day. I read your book back then and now it’s 2024. Thank you for the habits. Keep up the great work and content.

[@jaykay5142]

Personally, i feel like fire isn't optional anymore. The economy only works for the top 1% so if you don't get there, you'll be punished severely. Another thing I've found out over the years I've been following the movement is that speed is the most important metric. If you do it quickly enough, all of the concerns you have pointed out are moot since you have not had time to develop toxic habits. The working/accumulation phase needs to be treated like radiation. The longer you linger in that phase, the sicker you become. Buckle down, get it done fast and then bolt.

[@TheCelmap]

Great points. That's exactly what I did. I did set the time frame of 10 years maximum. Reached barista fire and I'm so happy and relieved, I'm still in my 30's still working but without the stress of finances. I'm still investing but only 30% used to do 60%. Now I monthly expenses are 40%, investing 30%, 20% guilty free spending and 10% for short term goals. I'm happier and living my best life with alot of travelling and entertainment 🎉

[@James_36]

your comment hit me the most... should have tons of upvotes and is more useful than the clip itself. I would rather have an issue spending money than an issue of blowing money like everyone does... the reality is for most people starting on 0 and 0 privileges.. sacrifices have to be made and most jobs suck... in fact I challenge the idea that any job is fun.,.. it is called a job for a reason.. it is so bad you have to incentives people to do it. You can convince yourself it is fun but if you had the money when born to be totally free would you be doing it? most people who are honest say no and reflect... others just lie. I have had plenty of "fun" plenty of breaks away and plenty of time blowing it... this is now my regret and wish I did exactly what you suggest here. Ill be spending the next few years doing it that is for sure.

[@TheCelmap]

@@James_36 the author of the video is a multimillionaire and still young in his 40's so he's telling people to not save harder or not be frugal, his advice is super controversial.

[@jaykay5142]

@@James_36 Thanks James, I'm glad it hit home. I've been on the FIRE path now for a long time and all of this definitely comes from a lot of experience and self-examination. While I have done some things right, many other things were done incorrectly and now I find myself still working past my 40s. Let me tell you, it is not a good position to be in so take it from me, do whatever you can at this point to escape. I wish you the best!

[@LisjeVal]

I have a personal "three strikes" rule on pricey purchases. If it is expensive, but not beyond my budget, I will walk away. I may come back to reconsider. If I return a third time to "think about it" I know I am being silly, it's time to buy, or I likely will regret it later. Thankfully I learned this early, and it has worked for forty years. No regrets.

[@joebazooks]

im 35 and 1/3rd of my rent is paid for with investment income already. i barely "work" cuz i founded a bz that generates about ~80-100k/year gross and ~40-50k/year net, which requires very little effort now, and i barely spend my money on anything other than essentials like food and shelter, so i just watch my net worth grow and i have all the freedom in the world while my friends grind away day in and day out at jobs they hate :) it gets easier and easier, closer and closer to absolute financial freedom as time goes on

[@RachanaAndSudarshan]

Really meaningful and logical way of looking at FIRE and actually simple steps to take to get there. Amazing.

[@daszieher]

wrong, don't respect money. Use it like hydraulic fluid in a hydraulic system. Accumulate what you need, pressurise it, make things move. It's never about the money, it is always about what you can do with it.

[@phattacorider]

You need to respect money. It's a very powerful tool that can make many things happen in this world. It can make our lives much easier when our lives get harder. If you don't respect money, then you take advantage of how you got it, how much you want to have in your future, and how to impact others around you. Your hydraulics analogy is missing a key component, the reservoir. If you don't have enough of it, you can't actuate a system that makes things move.

[@Dividend-Shark90]

The real problem these people are having is hyping all this up and watching a dramatic KZbin video like this. Hustle hard, hit your desired monthly income coming in and then work becomes optional. It's not really rocket science, being over involved in FIRE forums, KZbin etc. can make for unnecessary complexities. Live your life the way you want to, our days on this earth are counted and FIRE can help you maximize the value of your time here if you do it properly.

[@tyrecarmon20]

Took the words right out my mouth

[@aidas9176]

If you do not have continuous new goals in life, you will end up with depression! Make sure you always have goals regardless of your age!

[@richlandzee8686]

I didn't know anything about FIRE movement until I'm in my mid 40s. I've always been a saver all my life. The more important question is I need to figure out what my crossover point is. Sky-high cost of living is everywhere and having a million in the bank feels like nothing. I am definitely not the Fat FIRE type but instead a Coast FIRE with a moving crossover target. Not planning on retiring until at least 59 or something happens. Ramit is right, I will continue to dial back my work stress level and learn to be more comfortable with spending once in a while. Financial freedom with minor tweaks here and there is my ultimate goal.

[@Lili-p1b5t]

Your ability to describe the pros and cons of the FIRE movement in a non-jugmental and objective way, even though you may not fully agree with it, commands a lot of respect and I'm here for it. This is a very professional video. Thank you.

[@staganddoe6043]

I am watching my parents and in-laws working into their late 60s-70s and still carrying debt and no FI. It terrifies me to think if I don’t plan now, that could be me. It’s hard to find balance between living your rich life and planning for retirement… I’m really struggling, this video helped a lot

[@TheCelmap]

There is not rocket science about investments. You just need to sacrifice for few years and then after your finances goals are set you can have balance life style by investing and living life. Take 3-5 years to work hard and invest hardcore. Live frugally and spend as little as you can.

[@candecarro]

I never heard “frugality” discussed this way. I was brought up in a relatively frugal home. We had enough, but Mother and Dad were careful. I lived the same way, happily; now at 76, I have plenty to live on beyond the rest of my life. I’m “thoughtful and intentional” (thank you, Ramit) and extravagances are difficult. Trying to dine out more often and it gives me pleasure.

[@MNP208]

My parents are the same way. I'm constantly telling them "your children want you to spend your money!"

[@candecarro]

@@Jean.A.squirrel Actually, no! Maybe it’s time I updated my photo. I like to try every day, however, to replicate that look- hair, smile, etc! I do my best!!

[@candecarro]

@@Jean.A.squirrel But fountain of youth? Lots and lots of exercise, lots and lots of time outdoors in the pool in the ocean… abstinence of added sugar and avoidance of ultra processed foods, mostly homecooked meals, regular fasting, just one meal a day for years.

[@gatekeeperboxing5898]

My Mum was the same (Dad was the opposite). I tend to take after my mum, Dad was always telling me to spend my money and enjoy myself. I have spent money on things I thought I would enjoy, but I still saved most of my income. I never spend frivolously, I always take time to consider purchases and make comparisons before purchasing anything.

[@jillpontius7055]

Thank you for defining financial independence! I hear that often on KZbin but didn’t know exactly what it meant.

[@shaneleslie8968]

Retire at 39 lots of sacrifices in my 20s and 30s. I can work if I wanna to, so far I’m good. I’m focused on my special interests

[@ofensatul]

cool story

[@j.l.salayao8055]

@@ofensatul cool reply

[@alvinjenson3320]

I clicked on your video thinking I would disagree with it. But your advice is very well presented and you cover the pros and cons very descriptively. I have to say I agree with you on both earning 30% more and saving 30% more, to quickly achieve financial independence. Great video.

[@Dividendsmattertoo]

So I did go through 3 years of frugality and two jobs from 27-30 but I still made sure to hav fun and spend time with family and friends date a lot. It was easy to be frugal because I don’t really care about materialistic things. But now at 33 my portfolio is doing great I upgraded my car bought new clothes I can go out to eat all the time. Now I just have one single chill job that pays me more and still investing a lot but my portfolio is making moves in its own so I can still achieve fire around 44-49. So be frugal and working hard for a short period of time can set u up for life just never forget about your loved ones or sacrifice time with them for money.

[@maxinoume]

Investing early makes a HUGE difference. I can now stop investing and retire at around 60 or keep investing at a lower rate and retire early while spending a lot and enjoying my money now. I have now been spending more money without guilt and actually enjoy my life more. If you're 25 and want to retire at 65, you could be fine by investing 10% (more is better). If you decide to sacrifice for 2 years, each additional 5.5% invested in those 2 years saves you 1% to invest for the rest of your life. So you can invest 20% for two years and only need 8% for the rest of your life, or 40% for two years then 5% for the rest of your life, or 70% for two years then 0%. If you sacrifice for 4 years instead or whatever, it's even easier/attainable.

[@TheCelmap]

​@@maxinoume uuauuu I love your points on investing more earlier and less later, that's what I have done. I'm 36 and invested hard core from 30 to 36 (march this year) and I'm feeling millionaire 😂😂😂😂😂😂. Have so much money invested that return on investments cover all my living expenses. I can stop working if I want or work part-time or even take long sabbaticals. I do absolutely still work and from April to date and spending and investing more money on me I'm so thrilled 😊. 30% of my income is for my guilt free spending without any worries. Sacrifice for few years is worth it.

[@TheCelmap]

​@@maxinoumeI did sacrifice for 6 years by saving/investing 65 to 70%. Right now my investments return covers my bare bones expenses, I couldn't me more happier. I'm 36 only and my investments is moving by its own but I still investing 30% so I'm becoming richer and richer. Now that I'm set, I'm investments more money on me and on experiences with lots of outgoing and travelings. The secret is to do what you guys stated above, sacrifice early for few years and you're set for life.

[@matw1x]

I 'retired' back in 2020 while I was still in my twenties. I wish retired even earlier. Being confined to a work schedule and constantly planning your life around that really takes a toll on your body, and ages you like a mofo.

[@ebelen1]

Couldn’t agree more on many points. I decided to not work and lived an ultra frugal life with my wife to see what truly was necessary versus extra. It was a miserable year for both of us but now we know. I will also agree that if all you do is save, it makes it much harder to spend later. It’s something that does require practice but truly, can be learned through “hard work” haha.

[@sasukesuite1]

I just want the ability to choose what I want to do every day. I don’t want to have to wake up at 7 am every day for the rest of my life and go to a building for 8 hours and worry about if I’m going to be able to keep my job or if I have to look for a new one. I want to choose what time I get up, what car I drive, where I go, what work I do that day if any, and for how long, and still be able to have a place to live and food to eat.

[@cooledcannon]

I want to do lean FIRE and then decide whether I want to earn more afterward

[@getinthespace7715]

I'm investing to cover standard of living increases. For example, I want to get my private pilots license and start a $20k-30k a year flying hobby. I'll invest $300k upfront so my hobby is 100% paid for with 10% returns in perpetuity. If I don't spend the returns it just rolls into next years budget. If I get to the point where my entire life is funded with investments... That's when I'll pull the trigger on retirement. I'll plan for withdrawal rates closer to 3% for my core living expenses so they are covered no mater what.

[@SS-kg8rj]

@@getinthespace7715 Wow 10% in perpetuity! Amazing.

[@La_sagne]

​@@getinthespace7715 good plan!

[@lazstan]

Only hearing of fire at age 49 I have no choice but to use it to nicely retire at age 61-63 as in 54 today and went from zero to millionaire in 5 years. So I hope to hit 2.5mill + in 7 years and can decide to work at all or part time or not as I'll be spending 2-6 months living in other countries

[@IgWannA2]

I've been planning to FIRE for a few years now and I'm well on my way, but I'm not "in the community" and have never been to an internet forum or anything, only watched a few videos. There are loads of types of fire, and many people seem to focus on lean fire which personally is not for me. I also see a lot of fire people don't have kids! It's all a balance at the end of the day and there are so many ways you can go about it, such as mini-retirements (I took a 6 month sabbatical last year) or switching to a lower-paid/less stressful job towards the end. Everyone is different. What I like about the concept of fire is that it gives people a sound investment understanding and opens their eyes to there being more ways to go through life than the usual "spend almost everything you earn and retire in your 60s". To me, life is about living and not just working, since you only live once, so I plan to strike a balance of a pretty good standard of living/spending but retire comfortably in my early 50's so I can still enjoy things before I'm too old to. Who knows, maybe I'll get a part time job as a gardener or something in my 50s just to stay active and have something to do, but not be super stressed about working 40 hour weeks just to pay for flash cars and huge houses that add no value to my life.

[@MariaCarabin]

Thank you for the video! It's exactly the criticism I feel towards FIRE. One thing I'd like to add: The problem about keeping your spending on hold so you can spend it later is, that you might die, before you can spend it! Or your health deteriorates before or after you reached the number, your circumstances change etc. When I was a child many people had X amount of plans for "AFTER RETIREMENT", and then died just after, or got sick. I agree that one needs balance and also live in the now. The future is not a given, it's a privilege, imo. I defo want to live financially independent but not retire early... I'd like to be able to keep studying here and there or adding qualifications. But I want to be able to work part time only, without needing help from the state. I try to consume less (spend less money) and set priorities (a small trip instead of buying something). And I'm investing into education which will lead to a job that's paid A LOT more. I will then make this my main job and my old job will be a side hustle. My goal is to work 50-60% in the main job and 5-10% in the other one. I'll keep my expenses the same and this will lead to being debt free and savings and eventually to financial independece.

[@maxinoume]

One important nuance about your point "The problem about keeping your spending on hold so you can spend it later is you could become sick": I would rather be sick with a lot of money invested that will actually allow me to be sick and not stress about making ends meet. I wouldn't want to have spent mindlessly all my life only to become sick and be unable to work and unable to support myself. In the end, like you said, it's all a balancing act. Take the time/money to live today while making sure to be able to live later.

[@AA-cr5tu]

This video sums up perfectly what I felt was wrong and right with the FIRE movement but could not put it down into words. Agree with the last part on not to retire early! Living a rich life is better than retiring doing nothing.

[@getinthespace7715]

I'm teaching my daughter (14) and am setting her up for the future. I'll start her a Roth IRA and a brokerage account this year, and do dollar for dollar matches for her investments. It will be possible for her to be 100% debt free, own a home and have 1 million invested before 30. My wife and I are on track to have 1 million invested by 45, I'll probably retire from the 8-5 by 50. I justify large dollar spending by saving for it upfront. If I have a hobby that costs $20k a year... I'll invest $200k to fund that hobby in perpetuity.

[@nishashawn2021]

When did you start your aggressive savings?

[@IAmebAdger]

Good job. Looks like she's set up for outstanding accumulation. Decumulation you can eventually figure out when it's nearer to the time.

[@getinthespace7715]

@nishashawn2021 , we've been saving about $20k a year for 15 years, I just hit 40, but this year, our income tripled. I got a promotion and my wife graduated with her Nurse Practitioner. So we are debt free and on track to saving and investing $150k a year. Next year, our plan is to take $250k, buy land and cash flow building a new house. In our area, old houses built in the 50's are listed for $400-500/sq ft. Airbnb's drive up prices to insane levels. I can build way nicer myself for less than $100/sq ft. If the market doesn't crash and stays insane, that might be an avenue for me to literally build wealth. Put 250k into a house, live in it 2 years to qualify for section 121 cap gains tax exemption ($500k married) Start building the next one and sell the first one. If it works out well, I might quit the 8-5 early.

[@rebeltheharem7028]

Yes, educating your kid about finances early is always a good thing.

[@danneyrodriguez4796]

Incredible video, truly dropping gems!! You have an articulate version of what some of us just can’t sort through in thoughts. Love your videos, I am learning a little at a time. Thank you

[@livennlearn]

Wished my grandmother could have seen this. Lived in ultra frugality; destitution, and in inhospitable conditions. She saved 5 million in cash and assets and died miserably and in constant fear that her “ wealth “ would be taken from her

[@Tchild2]

Great depression mindset.

[@jumbothompson]

I think a lot of people have this. I've been reaching probably all of my financial goals over the last 4-5 years and yet I feel like I should have more. I'm not satisfied with what I have now. It's weird.

[@livennlearn]

@@jumbothompson except she didn’t have financial goals. She just wanted to survive and when she actually started thriving, her mind couldn’t accept

[@spazzman90]

Do both is the answer to a lot of financial questions. It aids in sleeping at night. Should you pay down mortgage or invest? Should you pick this ETF or that? Should I sell out of a particular stock or not? etc, etc..

[@rda9441]

I want to retire at 55 to free myself of following someone else's clock. I want to travel and see the world from 55 to 62. This would have me living my rich life. Fat fire is where I want to be.

[@patdennis2586]

If one doesn’t want to “retire and do nothing”, it’s time to look at an active community to live in. In F. I., I can choose any of the 3,500+ clubs and activities that are offered here in The Villages, FL every day.

[@Kika-rn9tq]

I am doing Fat 🔥. My husband and I are high earners who started late. We had some 401k investments before but not a lot just a little over 100k. We save 30% a year which still allows us to vacation travel save up and buy cars cash. But only because we got completely out of debt and only have the house to pay off. If we hadn't done that we would not be able to do what we are doing. Investing and saving aggressively but still living our rich life. Grateful for the video!

[@ayyyejesterdazed]

I just want to be able to be a SAHM who homeschools, yet has a way to make money from home. As much as I want to put my faith in my future spouse to be a provider… I don’t want him to feel pressured or burdened. If he loses his job or is injured, I will be our family’s safety net no questions asked.

[@OOOO-cn7rc]

I reach my goal 2M last year by living like a college kid and save 95% of my income to invest, my original plan was to start living my life and buy stuff that i alway wanted. but i was unable to and i just found myself rethink many times before any purchase, now im actually nearly 3M and i still have no idea how to spend because i cant escape my college kid lifestyle routine.... hopefully theres a step by step guide on learning to spend soon. Thank you so much for this video, exactly what im looking for and people dont make enough video about this topic.

[@ramitsethi]

This is so common! As I always say, "the way you feel about money is highly uncorrelated with the amount in your bank account." I hope you can find a way to develop a healthy relationship with money. We also talk about this in my Money Coaching program (iwt.com/moneycoaching)

[@GinaStanyerBooks]

I read the book Your Money or Your Life back in the 90s and it really changed and informed the way I looked at money. It’s dated now, but still a great read!

[@username00009]

I think Vicki Robbins released a revised version in the last five years or so.

[@Youmaycallmesammy]

I don't want to work a job that only allows 2 weeks of vacation a year. Its stealing my life every year. Might barista fire early because you cant get your youth back.

[@ramitsethi]

What about negotiating with your boss for additional vacation? Or finding a new job that gives you more vacation? Why aren't those the first things to consider vs. saving 68% of income for 15 years to Barista FIRE?

[@Youmaycallmesammy]

I actually did ask when I got this job, no wiggle room. My husband and I actually enjoy being frugal. It's like a game to us.

[@SuperTikes]

@@Youmaycallmesammy Same here. No extra vacation days at any job I've had. My friend actually finally found a job that offered "unlimited" vacation days and so he was happy and used 2 weeks already this year. The company got back to him and said "actually, you're using too much and the unspoken rule is no more than 3 weeks per year". That's barely enough to see his family and travel. Oh, and by the way, the "vacation" days include sick time within them. Normal everyday working folks don't have the luxury of freedom of time, which is why FIRE is and will continue to be a great option.

[@TheCelmap]

​​@@SuperTikesAbsolutely and companies won't give the luxury " for more free time negotiation". They need your labor and will jump to next candidate if you put to much demands on the table. I've done fire, super happy with my decision. I work as contractor now so only 2 weeks per month, the other 2 weeks I spend my time on whatever I want without ask permission. My salary covers all my expenses and my free guilt spending as well and I still have some to put towards my investments which is growing nicely. Still in my 30's and living my best life without any financial worries thanks to my decision on early sacrifice 🎉.

[@MillenniumInterests]

@@ramitsethi Worth noting that sometimes the “Just Negotiate Bro” advice isn’t available to everyone. For example, people that are on pay scales where everyone in a role gets the same pay, or policies around vacation aren’t flexible. It’s a tough job market right now, so while some people might successfully find a dream job, a lot of people are struggling to have any job at all. I’m not being a doomer about it, but I encourage you not to sell Survivorship Bias stories either on the other side of the scale.

[@bobbyboombeck]

We reached FI and retired early in our early and late 40's. We found our balance along the path and now 3 years post RE we could not be more happy with our decision to go for it. We travel a lot, enjoy raising our daughter (13) and diving into hobbies and enjoying time with friends.

[@TheJakobRose]

I have a 40%-50% savings rate at the moment, but in no way align myself with the FIRE movement. My goal is to do this for the very start of my wealth building journey and relax after a decent foundation is built. I've been able to fully fund a 6 month emergency fund in 6.5 months by doing this (on a fairly low income)

[@samuelwilliams7331]

That is FIRE

[@TheJakobRose]

@@samuelwilliams7331 Its not FIRE because I'm only doing it for a year or two, no desire to retire early

[@TheCelmap]

Does matter if you want to be aligned with movement or not, but that's FIRE concept.

[@TheJakobRose]

@@TheCelmap I'm only doing it for a year or two, no plans to do it until early retirement

[@TheCelmap]

​@@TheJakobRose I truly understand what you mean since I've done that myself. FIRE have alot of subcategories so you choose yours. If you're are saving/investing that much for few years only meaning you will fall in Coast Fire category when you'll just keep up investing without so much sacrifice while enjoying life. I've done the same, worked hard for 6 years or so and invested heavily almost 70%. I've reached my crossover point so I only invest 20% because I like investing.

[@nora-.-g]

Ramit, I get so much value from your videos. I really love how you challenge gender roles in marriages and partnerships with entwined finances. I really hope you will consider featuring some queer couples on your podcast. I haven't seen your Netflix show but I think the subjects are a little more varied? It might be super interesting for you and helpful for your audience to see how those money stories and gender roles play out in non-straight couples. And I know that other LGBTQ+ listeners like myself would love to see it! We all have so much to learn from one another.

[@ramitsethi]

Hi! I've featured multiple queer couples on the pod. Please check past video & audio episodes. It's very important to me to speak to as many people from as many different backgrounds as possible. Thank you for watching!

[@nora-.-g]

@@ramitsethi oh great to know I will dig deeper into the archives and check that out! Thanks

[@soumyajeetchakrabarty6872]

This is true, I have developed an ocd when it comes to spending money on my necessities since I am also pursuing lean fire, so much so I don't even want to replace my socks which is replete with holes. The logic that keeps on knocking at the back of my subconscious is do I really need it? Also nice correlation between fire movement and conservative Indian parents who raises their sons & daughters as celibate and suddenly at the age of 24 pressurises them to get married. I have personally seen some of my Hindi heartland friends having awkward months if not years post marriage sometimes leading to resentment.

[@BrothaTech]

The other problem with F.I.R.E. is that folks...don't Retire Early. They create new jobs for themselves as (wait for it) - KZbinrs, podcasters, social media Influencers, coaches, speakers, online course creators , book writers, etc. What's the point of Retiring Early...If you still working?

[@coley013]

i didn't realize spending was a skill. my wife has been practicing all her life

[@calcustom5026]

I FIRE'd by 28 years old and after a year of retirement I realized that I needed more stimulation. So, I started two successful businesses. FIRE gave me the financial security to stop grinding for a paycheck and start living a life that benefits myself and my community. If I didn't know that I could fail or quit and be just fine, I would have never taken the risk.

[@mflong100]

I tried to do FIRE savings rate. I have slowed it down but it has totally kick started my investments. I am more balanced now and happier making sure we live now.

[@parispierre10]

What are the rates?

[@mflong100]

@@parispierre10 I got as high as 27% of net. I have backed down to 22%.

[@maxinoume]

Making a sacrifice for a year or two at the start makes a HUGE difference. Having a good nest egg invested early on can allow you to take it super easy for the rest of your life. I did something similar; I went all-in for a short while and now I have enough invested that if I stop investing I could still retire at around 60. Now I can enjoy life, spend a lot on my interests, take longer vacations, and still retire early by investing a smaller (than before) percentage of my income. Examples with numbers: If you're 25 and make 60k and invest 10% (assuming no wage increase), by 65 you will have invested 200k but it will have grown to 1.6M (assuming 8% returns) which should be enough for a safe salary of 64k with a withdrawal rate of 4%. If you make sacrifices for two years (by living at your parents, or with roommates, or w/e other sacrifices) and are able to save 50k in those two years (investing 45% of your income ignoring taxes), then you only need to save 5% ($250) of your salary for the remaining 38 years to reach that same 1.6M (but this time you will have invested 120k instead of 200k). Or if you want to go completely crazy, you could do that 45% savings rate for 4 years and stop investing for the rest of your life, or crank up the savings rate to do it faster. I understand that those are crazy percentages but it's just to give an idea of what investing early does. Not everyone will be able or have the opportunity to do this. ps: Those are just numbers to show the difference between investing early vs steadily. I'm not making statements about if that amount is enough or not to retire (alongside SS or not)

[@TheCelmap]

Congratulations it will compound during the years and your older self will thanks your younger self. I manager is 70 plus years old and is desperate for retire, however, due to his lack of preparation he still needs to work to pay the expenses. I told myself I will never put myself in this situation to work after 60 unless something major happened in my life. I'm 36 and reached my crossover point meaning my investments income cover all my monthly expenses, when I told that to my manager he was in such as disbelief.

[@parispierre10]

@@TheCelmap what investments accounts do you have? And I don’t get how it covers your expenses…? Like devidends?

[@robertbalian9144]

So much truth in here. We all need balance in our lives.

[@BradenIrwin]

I want the FI with the opportunity to RE if I want. I'm afraid if I do RE, then I will lose purpose. Remember people, be sure to retire TO something.

[@The-Dirty-Straw]

Then just don't adhere self-esteem or worth to a job.. that's literally it. Just flip that light switch in your brain.

[@brandongerofsky4817]

It's definitely not as easy as that. But yes I agree!

[@sedalemccall]

Love the way this is put. I want FI but I don't really care about RE. Now that's my goal

[@ChristophSpeckmann]

Offtopic: @0:48 may I ask, what have you have done to your hair? Looks far better nowadays.

[@JJMA52]

asked the same thing! i need some advice haha

[@LanceBryantGrigg]

This was a good one; I liked it. I like how you approached it. way smarter then mr ramsey or others. I have been on the fire movement for now about 5 years. It's been a long battle and during this time the results have been insane. I went from a guy with 30k in the bank to a guy worth over a million. I have great dealings with all kinds of businesses and my home based work environment is something most folks would kill for. I have it all frankly. I have burn out something real and this one helped me understand it a bit more. I love what I do; and ultimately the fat fire method is how I need to finish. I like what I do; its not a punishment. Gotta reward myself and sharpen the saw.

[@aphromew4502]

Aayyooo, my boy went silver fox. Aged like fine wine. Another great video, my guy!

[@matthewsimon1433]

Just noticed, it looks good

[@JordanEdmunds]

Level-headed and insightful AF, as usual ❤

[@AA-ju7lk]

Great video… except for the background music… annoying… distracting… sensory-unfriendly… Why would you consider it necessary to add music to your content? It detracts from it. For some of us it renders the video - hard to watch.

[@FrugalFamilyFocus]

I am planning to retire between 50-55 years old depending on how long my husband wants to work. Our number is $2 million for the two of us and we are on target to hit it. We started “late” in our 30s and invest 17.5% gross and an additional 20% of our net so I call it a 35% investing rate. We make $175k combined. We spend ~$85k annually and throw the rest at our mortgage, our kids 529s, and into sinking funds. I buy organic groceries, take my kids to Disney World, drive a paid off luxury model vehicle, eat at restaurants weekly, and live the “rich life” while still aggressively planning for our future. Mindset surrounding spending is a struggle and we do have to remember not to save just for the sake of saving.

[@karengonzalez3381]

Am I first! Admire ur videos ! ❤

[@travis1240]

Most people dogging on FIRE are really dogging on extremism. The thing is though, the FIRE community is diverse and includes plenty of people aspiring to retire in their 50s with a very reasonable lifestyle. A lot of people can cut a fair bit of expenses without sacrificing happiness (consumerism isn't really a path to happiness anyway). High earners can pretty easily sock away 25% or more if they are able to somewhat fight lifestyle inflation. Anyway I totally agree that living meagerly (and making yourself unhappy) in order to not work and live an unhappy life in the future is not a path to happiness or meaning. It's all about finding what brings you happiness and meaning. For me, having the option to retire early is golden - I hate feeling trapped. I probably will retire somewhat early because time is more valuable than money.

[@adamp6320]

I do wrap a little too much of my identity into my profession (not job), such that I think if I were to quit in my 40s and do whatever meaningful activities those in FIRE do that isn't paid professional work - I think I'd feel a bit lost. To me, I like my job and colleagues and the pay is very generous, so I'll continue to stay at the Four Seasons, fly first class, and work while I save for retirement and put extra aside for a rainy day as well.

[@AR-oh1tq]

I have moved around FIRE, Dave Ramsey method and now yours. We paid everything off (no mortgage, cc pmts or car pmts left). WE invested very little during those 3 years and have picked up investing again. THOSE were hard years for sure. That was 5 years ago, now we're in our early 40s and we invest 20%, spend 50% and save/ enjoy the rest. We're a family of 6 with 2 average incomes. It can absolutely be done and enjoyed 🎉

[@mottyd]

All I want is to retire earlier than 70 😂

[@Malaki727]

40 for me bruh

[@verb0ze]

69 ½ ok? What will you do with the next 40-50 years?

[@gatekeeperboxing5898]

OMG I can't imagine having to work that long. I retired before 40 and don't miss employment at all. No more getting up early, no more horrible bosses and difficult colleagues, no more commute to work, and much less stress. Best of all I have so much free time to plan and achieve whatever I want to achieve.

[@wasabibottomboys1623]

CoastFIRE checking in! We are HHI and have a crossover point where we just need to earn enough to sustain our spending, but no longer need to keep saving. So that might be both of us (DINK household) going to part time or consulting, getting a new less stressful kind of job, or one of us retiring or taking sabbatical while the other decides to work. It was the perfect option for us because we didn't have to cut down crazily on our expenses, and it leaves the right amount flexibility in the future because we both (more or less) like working

[@tylermears2671]

Negotiate a 30% raise? I don’t think my boss would go for that.

[@ramitsethi]

Maybe. Maybe not. Have you tried? If you truly build the skill of learning how to negotiate (which I teach) and your boss says no, you have options: build your skills, try again, and/or leave to find another job.

[@Jakkaribik1]

@@ramitsethi If the work says no they are more likely to replace you if a better Person comes up.. People Pick your Battles do not overdo Diplomacy

[@davidandrews9914]

I'm currently pursuing FIRE and have been for 10+ years. My wife and I were pretty frugal the first 5 or so years with about 70% savings rate. The benefit of both being engineers. As our salaries improved, kids came into the picture, and money accumulated, we expanded our lifestyle a bit while still maintaining roughly 40-50% savings rate. We are about 4 years from having the ability to retire, I'll be mid 40s. I'm not sure if I will, I still enjoy the work I do and the impact it has on the community.

[@AnonymousAccount514]

80k a year take home?….cause if your salary is 80k, you can’t afford 6k a month in savings

[@swithheld9905]

yeah the math there is all take-home: save 10% of $80K ($8K), leaving $6K/mo or $72000 per year to spend (the "average spend" according to the source he pulled up).