Chrissy Arsenault and her husband, Ryan, didn't grow up wealthy. To get ahead financially, they knew long ago that a combination of “hard work and frugality” would be necessary, Arsenault told Business Insider via email.
When the couple heard about the FIRE movement in their mid-20s, it was music to their ears.
FIRE is an acronym that stands for “financial independence, retire early.” Generally, people who embrace the FIRE movement want to grow their savings so they can achieve financial freedom and retire before age 65 — though some people prefer to keep working. To achieve their goals, some FIRE advocates save the majority of their income, take on a side job, or delay costly life milestones like having children. Many FIRE advocates trace the movement’s philosophy to the 1992 best-selling book “Your Money or Your Life.”
To learn more about the FIRE movement, specifically strategies for maximizing savings and achieving financial independence, the couple sought out FIRE-related YouTube videos, Facebook groups, newsletters, and podcasts. They then tried to apply some of that information to their financial strategies.
Their efforts have paid off.
In recent years, the couple’s combined net worth has grown to more than $800,000, according to documents seen by BI. Arsenault said their goal is to grow their investments to about $2.5 million over the next 10 to 15 years — which she hopes will allow them to retire before she turns 50. Both she and Ryan are in their early 30s.
“Retiring at 65 just doesn't sound appealing,” said Arsenault, who works as a marketing executive and lives in Colorado. “I'm sure we're still active and healthy at that age, but there's a lot more we can enjoy in our 40s and 50s.”
Because many Americans struggle to save for retirement — and many retirees find they don’t have enough to stop working — the FIRE movement has offered a potential blueprint for those seeking financial security. While some people have found success with FIRE, it hasn’t proven to be right for everyone, in part because it can require significant savings goals that aren’t always realistic. Still, FIRE advocates live a wide range of lifestyles. And experts say some of FIRE’s principles — such as the benefits of saving and investing early to take advantage of compound investment returns — apply to a broad audience.
Arsenault shared her and Ryan's best strategies for growing their savings, and the one lifestyle change that could make early retirement a little harder.
How to Live a FIRE Lifestyle
Arsenault summed up the couple's financial strategy this way: “spend less, earn more and invest more.”
To spend less, they eat out less often, buy in bulk at Costco, plan their own vacations instead of through travel agents, avoid gym memberships by exercising at home, and limit their alcohol consumption.
They also postponed certain expenses to save some extra money.
“I walked around with a broken phone screen for years and I didn't mind at all,” she says.
To make more money, Arsenault said they “aggressively pushed for additional income.” For Arsenault, that has taken the form of “climbing the career ladder” — she said she was making a six-figure salary by age 26. She also started a side job as a registered dietitian, something she focuses on in the evenings and on weekends.
Ryan works full-time as a human resources professional. In his spare time, Arsenault said, he focuses on managing the couple’s three investment properties, which generate passive income. The couple’s combined taxable income was about $250,000 in 2023, according to a document seen by BI.
When their strategies generate extra money, the couple invests as much as possible in their 401(k) plans and low-cost index funds.
The couple keeps about six months' worth of savings for emergencies.
Arsenault said saving money was easier when she and Ryan lived in Indiana. The couple moved to Colorado during the pandemic, a few years after their FIRE savings journey.
One of the biggest differences between the two states is home prices, Arsenault said. The couple lives in Monument, Colorado, where the average home value is about $743,000, according to Zillow. In Fishers, Indiana, where they used to live, the average home value is $426,000.
In the coming years, one lifestyle change could put additional strain on the couple's finances: They're expecting their first child, and they know this will mean a lot of new monthly expenses.
However, Arsenault said she thinks her financial goals are still achievable, in part because she and Ryan have made plans for life with a newborn, even planning how they will finance their child's potential college education.
“We started saving for his 529 plan so they can go to college,” she said, referring to the investment account that allows tax-free withdrawals if the money is used for certain education expenses.
Are you part of the FIRE movement or do you live by some of its principles? Contact this reporter via [email protected].
Read the original article on Business Insider
