Chrissy Arsenault and her husband, Ryan didn’t grow up in a wealthy family, and he’s always known that financial success requires a combination of “hard work and frugality,” Arsenault told Business Insider in an email.
So when the couple learned about the FIRE movement in their mid-20s, it was welcome news to them.
FIRE is an acronym that stands for “Financial Independence Retire Early.” Generally, people who follow the FIRE movement want to save more, achieve financial freedom, and retire before age 65, although some prefer to continue working. To achieve their goal, some FIRE adherents save most of their income, start a side hustle, or delay expensive 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, especially strategies for maximizing savings and achieving financial independence, the couple sought out FIRE-related YouTube videos, Facebook groups, newsletters, and podcasts. Then, they tried to apply some of that information to their own financial strategy.
Their efforts paid off.
Over the past few years, the couple Their combined net worth increased Mr. Ryan’s assets have grown to more than $800,000, according to documents reviewed by BI. Mr. Arsenault said his goal is to grow his investments to about $2.5 million over the next 10 to 15 years, and he hopes to retire before he turns 50. Both Mr. Arsenault and Mr. Ryan are in their early 30s.
“The idea of retiring past 65 doesn’t seem appealing,” says Arsenault, who works as a Colorado-based marketing director. “You can still be active and healthy at that age, but there’s so much more to enjoy in your 40s and 50s.”
Many Americans are struggling to save for retirement — And many retirees feel they don’t have enough money to quit their jobs. The FIRE movement offers a potential blueprint for those hoping to achieve financial stability. While some have found success with FIRE, it can require significant savings goals and isn’t for everyone. That may not always be realistic, but FIRE advocates live a wide range of lifestyles. Experts say some of the principles of FIRE apply to a wide range of people, including the benefits of saving and investing early in life to reap the benefits of compound investment returns.
Shared by Arsenault She shares the top strategies she and Ryan used to boost their savings, and the one lifestyle change that may make retiring early a little tougher.
How to Live the FIRE Lifestyle
Arsenault summed up the couple’s financial strategy as “spend less, earn more, invest more.”
To cut down on expenses, she said she is eating out at restaurants less, buying in bulk at Costco, planning her own vacations instead of using travel agents, avoiding gym memberships by working out at home and limiting her alcohol consumption.
They also postponed certain expenses to save extra cash.
“I’ve been living with a broken phone screen for years and never thought anything of it,” she said.
To make more money, Arsenault said, “I’m aggressive. To earn “extra income,” Ms. Arceneaux “worked her way up the corporate ladder,” earning a six-figure salary by the time she was 26. She also began working a second job as a registered dietitian, mostly working nights and weekends.
Ryan works full time as a human resources professional, and Arsenault spends his free time managing the couple’s three investment properties, which he says provide passive income. The couple’s combined taxable income for 2023 is about $250,000, according to documents reviewed by BI.
When their strategies produce excess When the couple has extra money, they invest it as much as they can in their 401(k) plan and low-cost index funds.
The couple has about six months’ worth of savings saved up in case of emergencies.
Arceneaux said it was easier to save money when she and Ryan lived in Indiana, and the couple moved to Colorado. They were several years into their FIRE savings journey when the pandemic hit.
Arsenault said one of the biggest differences between the two states is the cost of housing: The couple is based in Monument, Colorado, where the average home price is about $743,000, according to Zillow. In Fishers, Indiana, where the couple previously lived, the average home price is $426,000.
Lifestyle changes are likely to put additional strain on the couple’s finances over the next few years as they are expecting their first child and know that will bring with it a host of new monthly expenses.
But Mr. Arsenault and her Ryan You’ve been planning your life with a newborn baby, even how you’re going to fund your child’s college education.
“I started saving for a 529 plan so my sons could go to college,” she said, referring to an investment account that allows money to be withdrawn tax-free for certain education expenses.
Are you part of the FIRE movement or live by its principles? Contact this reporter. jzinkula@businessinsider.com.
