Is the FIRE Movement Burning Too Bright?

Wouldn’t it be nice if you could just focus on the things you’re passionate about and not worry about earning a paycheck? That idea is what draws many people into the FIRE movement, or “Financial Independence, Retire Early.”

On the surface, it sounds ideal: save aggressively now so you can leave the workforce in your 30s or 40s and spend the rest of your life doing what you love. But as with many things in the financial world, the reality is not quite that simple.

What is FIRE?

At its core, FIRE is about extreme saving and frugal living in your 20s and 30s so you can retire as early as possible. Proponents aim to stockpile enough money—usually through investment accounts or passive income streams—to quit working decades before traditional retirement age.

The vision? Freedom from the 9-to-5 grind and the ability to finally focus on what really matters.

However, while the movement has some worthwhile principles (like intentional living and delaying gratification), it also has significant challenges and doesn’t always offer what it promises.

A while back, I talked with a young man drawn to FIRE. His goal was noble: he wanted to have more time for ministry. He planned to live in a van, spend as little as possible, and invest in start-ups until he hit it big and earned multi-millions. Unfortunately, that lifestyle didn’t support a healthy, balanced life. He struggled to maintain relationships and steady work. In chasing a future vision, he missed the opportunity to build something meaningful in the present.

Financial Realities: It’s Not Easy

One of the main hurdles FIRE followers face is navigating the practical issues of early retirement:

• Health insurance: Coverage can be expensive and hard to find outside of an employer-sponsored plan.
• Access to retirement funds: Most tax-advantaged accounts penalize withdrawals before age 59½, requiring complex strategies to access funds early.
• Cost of living: Many early retirees drastically cut expenses to stay afloat, which can make life feel more restricted than freeing.

While none of these challenges are insurmountable, they require more than just frugality—they demand ongoing planning and tradeoffs that often persist well into "retirement."

More troubling, the FIRE movement is also promoted heavily toward young people with an unrealistic view of what it will entail in practice. It’s easy to fall in love with the concept without facing the day-to-day reality. Here are a few persistent beliefs to challenge:

Myth #1: "I can live off passive income and do whatever I want."

One of the appeals of FIRE is the promise of passive income. People imagine rental properties, dividends, or side hustles supporting their lifestyle while they focus on what they love.

But many so-called "passive" income streams require active management. Running a real estate portfolio is essentially running a small business, from dealing with tenants to repairs, vacancies, and more. Even outsourcing management requires oversight and strategic decisions.

The truth? There’s no such thing as completely passive income. You may still have responsibilities, stressors, and limitations—just different ones.

Myth #2: "I’ll make a bigger impact if I’m financially independent."

FIRE is attractive to those who want to do more meaningful work, like ministry, nonprofit efforts, or creative projects. But ironically, removing work entirely can lead to a loss of purpose.

Many people who retire early find themselves restless or even depressed. They often return to part-time work or start volunteering just to regain a sense of contribution.

God designed us to work, not as punishment but as a calling. Work gives us structure, purpose, and opportunities to serve others.

"All hard work brings a profit, but mere talk leads only to poverty." – Proverbs 14:23

Myth #3: "I’ll be happy once I am financial independent."

This is one of the most common (and most damaging) myths around FIRE. It taps into a deeply human idea: "Once I achieve X, I’ll finally be happy." But psychology tells a different story.

In his book The Paradox of Choice, Barry Schwartz discusses impact bias: our tendency to overestimate how much happiness a future event will bring. When we set a goal, we imagine how good it will feel to achieve it, but reality usually falls short. Timothy Keller, in The Meaning of Marriage, notes a similar pattern—newlyweds often experience a short-term happiness boost, but eventually return to their baseline.

In truth, happiness is more about an internal mindset than external achievement. If you’re not learning to be a content, joyful person now, reaching FIRE won’t change that.

"I have learned to be content whatever the circumstances." – Philippians 4:11

A Better Way Forward

FIRE isn’t all bad. In fact, it encourages some biblical values like saving diligently, living below your means, and thinking long-term. But it often promotes a mindset of extreme sacrifice today for a promise of happiness tomorrow. And that promise doesn’t always deliver.

Instead, Scripture offers a balanced path:

"Wealth gained hastily will dwindle, but whoever gathers little by little will increase it." – Proverbs 13:11

If you’re considering FIRE, ask yourself:

• What do I have to give up today to retire in my 30s or 40s? Is the sacrifice worth it?
• How can I enjoy and sustain my work today, rather than simply endure it as a means to an end?
• What does a meaningful retirement look like, and how will I continue to find purpose when I no longer need a paycheck?

These may seem like distant questions, but they shape how you steward your resources today. As we often say to clients, the further out you set your goals, the clearer your decisions become now.