What is FIRE?
The acronym FIRE stands for financial independence, retire early. The FIRE movement grew out of ideas about number crunching and a minimalist lifestyle espoused in “Your Money or Your Life” (Vicki Robin and Joe Dominguez, 1992). FIRE was popularized by blogs like Mr. Money Mustache and Early Retirement Extreme, which feature both philosophical musings and practical advice for cutting expenses. Most people living the FIRE lifestyle aim to save and invest at least half their income. The ultimate goal is to grow your investment accounts enough to free yourself from the need for paid employment. Many FIRE writers live and die by the 4% Rule, which says that you can withdraw 4% of your portfolio per year forever without running out, assuming reasonable investment returns and inflation levels. When a 4% withdrawal rate equals or exceeds your annual expenses, you’re considered FIREd.
Common secular criticisms of the FIRE movement include: only people with high incomes can possibly do this, saving half your income is like a crash diet that inevitably falls apart when you start feeling deprived, not buying stuff is un-American, you haven’t accounted for healthcare/political/societal meltdown, and what would happen if everyone stopped spending and quit their jobs early? Religious minded critics point to potential moral stumbling blocks like greed and laziness.
Subscribing to FIRE doesn’t mean you plan to quit your job and sit on a beach luxuriating in margaritas once you hit a specific investment number. It’s not about giving your boss the middle finger a few years earlier. At its root, FIRE is about examining your lifestyle and cutting waste, distinguishing your needs from your wants, and deciding which wants are worth another decade or two of relying on income from employment. While some hardliners issue commands like “you can’t use a clothes dryer” or “no new cars, ever,” those are really just guidelines based on other people’s priorities. FIRE depends on your acknowledgement that any time you spend money, you’re trading off your free time for whatever you’re buying. Many people unwittingly exchange the best years of their lives for stuff they may not even care about, but the FIRE minded individual calculates how many working hours that dishwasher, or restaurant meal, or third kid costs.
Christians who attempt FIRE are bound by a higher calling: obedience to God’s commands. Fortunately for us, these commands aren’t contradictory to FIRE. While Christian financial stewardship certainly involves giving generously, perhaps lowering personal savings, many other elements of FIRE mirror Scripture closely. Preparing and saving for the future is clearly biblical, as is avoiding worldly reliance on consumption to satisfy our souls.
Check out this non-comprehensive list of choices Mr. Sense and I have made, and how they align with both a biblical lifestyle and our FIRE goals.
1) Living in a less expensive house than the bank says we can “afford”
Is it biblical?
Do not be one of those who give pledges, who become surety for debts. If you have nothing with which to pay, why should your bed be taken from under you? Proverbs 22:26-27. Limiting ourselves to a mortgage easily within our means allows us to fulfill our obligations to the lender even if our financial circumstances change. We avoid debt we cannot confidently pay back as promised.
Is it FIRE?
Our home satisfies our physical need for shelter, as well as being a beautiful place that suits our tastes. While it’s much more space than three people and one cat require, it’s not more than we can reasonably enjoy or maintain. Limited closet space and no garage help us say no to junk that will crowd up our living space. We are content with what we have, not focused on having more.
2) Mr. Sense staying home and homeschooling our daughter
Is it biblical?
Train children in the right way, and when they are old, they will not stray. Proverbs 22:6 Mr. Sense directs Kid’s education and teaches her our values.
Is it FIRE?
We are not reliant on Mr. Sense having paid employment. If I lost my job or we suffered another financial setback, Mr. Sense could help generate more income.
3) Investing in index funds
Is it biblical?
She considers a field and buys it; with the fruit of her hands she plants a vineyard. Proverbs 31:16. And “The one who had received the five talents went off at once and traded with them, and made five more talents…His master said to him, ‘Well done, good and trustworthy slave; you have been trustworthy in a few things, I will put you in charge of many things.’” Matthew 25:16, 23 God has blessed us with enormous privilege, and we do not take this for granted or fear the responsibility we have been given. We try to grow the money and other resources we’ve been entrusted with.
Is it FIRE?
Sustainable wealth isn’t created through get rich quick schemes. There’s nothing wrong with making calculated investments that carry more risk, as long as they are ethical and you can honor your obligations if they don’t pan out. FIRE depends on profitable investments; your money needs to grow so you can use the dividends and gains to support yourself.
4) Shopping at thrift stores
Is it biblical?
Turn my eyes away from looking at vanities; give me life in your ways. Psalm 119:37 Whatever my eyes desired I did not keep from them…all was vanity and a chasing after the wind Ecclesiastes 2:10-11 Stuff and status is less important than following God’s will for our lives.
Is it FIRE?
Thrift stores allow us to clothe ourselves affordably, often without sacrificing quality. We can use our money for saving and giving instead of becoming addicted to brand names or other kinds of conspicuous consumption.
5) Bike Commuting
Is it biblical?
She girds herself with strength, and makes her arms strong Proverbs 31:17 The heavens are yours, the earth is also yours; the world and all this is in it– you have founded them. Psalm 89:11 Both the earth and our physical bodies belong to God. We should maintain the resources we have been entrusted with. Our health and the environment belong to God; we should respect and protect them.
Is it FIRE?
As you may already know, bikes generally cost less than cars! Bike commuting cuts fuel, vehicle maintenance, and insurance costs. Biking and walking also promote physical and mental health.
6) Giving to our church every week
Is it biblical?
Each of you must give as you have made up your mind, not reluctantly or under compulsion, for God loves a cheerful giver. 2 Corinthians 9 All of our money and resources belong to God. We demonstrate our trust that God will provide for us by giving generously rather than hoarding.
Is it FIRE?
Financially independent people prioritize the important things over accumulating an ever growing pile of stuff. Giving brings our finances in line with our values. Even if my family was not pursuing FIRE, we would still give to our church. Forgoing unnecessary spending expands our ability to give.
Rather than feeling constrained by our faith or our financial goals, choices like the ones listed above free us to live more simply and contentedly. We can choose to be grateful for what we have and not waste time chasing after fleeting pleasures. FIRE isn’t on the radar for most Christians, and that’s completely fine. But FIRE principles are clearly compatible with biblical guidelines about money. Godly wisdom about money does not preclude our benefitting from modern writers who study our contemporary financial systems.
I look forward to discussing FIRE with fellow Christians in this space. In the future, I plan to share my thoughts on ethical investing, teaching kids about money, letting go of excess material possessions, cultivating gratitude, and more.
