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Becoming a FIRE (Financial Independence, Retire Early) fanatic comes with a few key stages—and I want to offer some advice for the most grueling one of all: the slow, slow stage of accumulation.
If you’re doing things right, you probably discovered FIRE and dove in headfirst. You adjusted your accounts, started aggressively investing, devoured all the FIRE blogs and podcasts, and maybe even ended up at one of the events (hello, FIRE cruise!). You probably check your accounts way too often—and hopefully, you’ve put most things on autopilot.
Now what?
You’re in the long slog of steadily accumulating assets.
I often see posts in forums and Facebook groups from people in the accumulation phase who are having a hard time sticking with it. The goal of FIRE feels far away, and the temptation to give up is real.
Here are four things you can do to pass the time and get back to being excited about FIRE.
1. Make Smaller Goals
Keep in mind that $1 million—or even $2 million—is a lot of money. It’s a lofty goal that takes time. I’ve heard from many people that the first $100,000 is the hardest.
So start small. Get to $25,000 invested. Celebrate—go out to dinner or to a coffee shop and order whatever you want. Then do it again at $50,000, $75,000, and $100,000.
We often forget to celebrate the milestones along the way to our big goals.
2. Do a Future Value Calculation
Nothing gets me fired up like seeing what my net worth could become if I just stay the course. I recently saw a post from a 36-year-old with $650,000 invested who felt like quitting FIRE. But let’s look at what those assets could grow to by age 59.5: $3,081,344.41! And that’s without adding another dollar.
That amount could support a $120,000 annual withdrawal starting at 59.5 without stress. Of course, if he wants to retire early, there’s more to consider—but still, what an incredible start!
Go online, use a future value calculator, and play around. You might be surprised by your numbers.
3. Find Hobbies and Interests Outside of Spreadsheets
Blasphemy, I know! But it’s OK to spend money now to build the kind of life you want to retire to. If you don’t find joy now, you probably won’t later. Most things in life are like muscles—you have to keep using them to know how they work.
So go buy that pickleball racket and start playing.
4. Take the Pressure Off
It’s easy to feel like you’re failing at FIRE if you ease up on saving and investing. I’m here to tell you: It’s OK. FIRE has many flavors. If you have a year when you need to slow down, do it.
I’m a proud member of the “FIRE failures” club, and I’m still doing really well!
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There are many reasons you might be struggling on your FIRE journey. It’s OK to take a step back, reevaluate your goals, and try one of these strategies to get excited again. Remember: It’s a marathon, not a sprint. Build a life around FIRE—but don’t make FIRE your whole life.
Cheers to your journey—see you at the finish line!
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