Kyle Massey, assistant editor at Arkansas Business, published an insightful, well-written story on the FIRE (Financial Independence/Retire Early) movement. We think FIRE principles could spark a broader savings revolution, and hope people — young people especially — read this article and absorb some of its key points.
'Young clients are increasingly coming to Aptus Financial in Little Rock, where Gutierrez is a partner, for aggressive savings options. She ties the trend to a movement called FIRE — Financial Independence Retire Early — planted by a 1992 book and fueled by bloggers who preach thrift and almost obsessive saving'
'Young workers value experiences more than possessions, Gutierrez says. “They’re not buying big houses or expensive cars, so we create a cash-flow system that keeps the same amount coming into their bank account to spend,” she said. “The rest is just piling up. FIREs want to get rid of student loans, want to travel, want work to be optional, and we have formulas to make that happen.”'
'A financial plan is essential because basic psychology works against saving, Gutierrez said. “We adapt to whatever salary we’re making. People say they would save if they made a little more money, but it’s not true. We have people who make $400,000 and live to their last dollar. If you don’t have a plan, you won’t naturally save.”'
Again, we'd recommend reading the entire article.