Chrissy Arsenault and her husband Ryan are not growing up rich. To get ahead financially, they have long known that a combination of “hard work and frugality” is required, Arsenault told Business Insider by email.
So when the couple heard about the FIRE movement in their mid-twenties, it was music to their ears.
FIRE is an acronym for “financial independence, early retirementIn general, people who have embraced the FIRE movement want to grow their savings so they can achieve something financial freedom And retire before they turn 65 – although some people would rather keep working. To achieve their goals, some advocate FIRE save most of their incometake on side hustleor postpone precious life milestones, such as have children. Many proponents of FIRE trace the movement’s philosophy to 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 searched for 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.
According to documents reviewed by BI, the couple’s combined assets have grown to more than $800,000 in recent years. Arsenault said their goal is to grow their investments to about $2.5 million over the next 10 to 15 years — which she hopes she can retire before she turns 50. Both she and Ryan are in their early thirties.
“Retiring at age 65 just doesn’t sound appealing,” said Arsenault, who works as a marketing director and lives in Colorado. “I’m sure we’ll still be active and healthy at that age, but there’s a lot more we can enjoy in our 40s and 50s.”
Just like many Americans struggle to save for their retirement — and many retirees feel they don’t have enough of that stop working – the FIRE movement has a potential blueprint for people who want financial security. Although some people have had success with FIRE, it was not a success fits well for everyone, in part because it requires significant savings targets that may not always be realistic. However, proponents of FIRE live a wide range of lifestyles. And experts say that some of FIRE’s principles – such as the benefits of savings and investments benefit from this at a young age compound investment returns – applicable to a wide audience.
Arsenault shared her and Ryan’s top strategies for growing their savings — and the one lifestyle change that could make early retirement a little more difficult.
How to live a FIRE lifestyle
Arsenault summarized the couple’s financial strategy as “spend less, earn more and invest more.”
To spend less, she said they reduced the amount dining out at restaurants, bought in bulk Costcoplanned their own vacations instead of using travel agents, avoided gym memberships by exercising at home and limited alcohol consumption.
They have also postponed certain expenses to save some extra money.
“I spent many years with a broken phone screen and it didn’t bother me at all,” she said.
To make more money, Arsenault said they have “aggressively pushed for additional revenue.” For Arsenault, this has taken the form of “climbing the corporate ladder” — she said she was getting a six-figure salary at age 26. registered dietitiansomething she focuses on in the evenings and weekends.
Ryan works full-time as an HR professional. In his spare time, Arsenault says he focuses on managing the couple’s three investment properties available to them 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 cheap index funds.
The couple keeps about six months’ worth of money aside 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 into their FIRE savings journey.
One of the biggest differences between the two states is housing costs, Arsenault said. The couple is based in Monument, Colorado, where the average home value is approx $743,000, according to Zillow. In Fishers, Indiana, where they used to live, the average home value is high $426,000.
In the coming years, one lifestyle change could put additional strain on the couple’s finances: They are expecting their first child, which they know will come with many children. new monthly costs.
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. They have even planned how to finance their child’s possible college education.
‘We started saving for him 529 plan so they can go to college,” she said, referring to the investment account that offers tax-free withdrawals when 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 at jzinkula@businessinsider.com.
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