Chrissy Arsenault and her husband, Ryan, however, did not grow up wealthy. To get ahead financially, they had long learned that a combination of “hard work and frugality” would be necessary, Arsenault told Business Insider in an email.
So when the couple learned about the FIRE movement in their mid-20s, it was like music to their ears.
FIRE is an acronym for “financial independence, retire early.” Generally, people who have joined the FIRE movement want to grow their savings so they can achieve financial freedom and retire before age 65 — though some people prefer to keep working. To achieve their goals, some FIRE advocates save most of their income, take on side jobs, or postpone important 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, specifically strategies for maximizing savings and achieving financial independence, the couple sought out 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.
Over the past few years, the couple have increased their combined net worth to more than $800,000, according to documents seen by BI. Arsenault said their goal is to grow their investment to about $2.5 million over the next 10 to 15 years — which he hopes will allow them to retire before he turns 50. Both he and Ryan are in their early 30s.
“Retiring at 65 or older doesn’t sound appealing,” says 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 to enjoy in our 40s and 50s.”
As many Americans struggle to save for retirement — and many retirees feel like they don’t have enough money to stop working — the FIRE movement has offered a potential blueprint for people seeking financial security. While some have found success with FIRE, the movement isn’t for everyone, in part because it can require significant savings goals. This may not always be realistic. However, FIRE advocates live a wide variety of lifestyles. And Experts say some of FIRE’s principles — such as the benefits of saving and investing at a young age to take advantage of compounding returns — can be applied to a broad audience.
Arsenault shared her and Ryan’s best strategies for growing their savings — and one lifestyle change that could make early retirement a little harder.
How to live the FIRE lifestyle
Arsenault sums up the couple’s financial strategy as “spend less, earn more, and invest more.”
To spend less, he said, they eat out less often, buy in bulk from Costco, plan their own vacations instead of using travel agents, avoid gym memberships by working out at home, and limit alcohol consumption.
They also postpone certain expenses to save extra money.
“I lived with a broken phone screen for years and didn’t mind it,” he said.
To make more money, Arsenault said they have been “aggressively pushing extra income.” For Arsenault, it’s been a form of “climbing the career ladder” — she says she was earning a six-figure salary by the age of 26. She’s also started a side job as a registered dietician, something she focuses on on nights and weekends.
Ryan works full-time as a human resources professional. In his spare time, Arsenault said he focuses on managing the couple’s three investment properties that provide them with passive income. The couple’s combined taxable income is about $250,000 in 2023, according to documents seen by BI.
When their strategy yields additional money, the couple invested as much as possible in a 401(k) plan and low-cost index funds.
In case of an emergency, the couple keeps about six months’ worth of funds in savings.
Arsenault said saving was easier when she and Ryan lived in Indiana. The couple moved to Colorado. during the pandemic, several years into their FIRE savings journey.
One of the biggest differences between the two states is the cost of housing, Arsenault said. The couple lives in Monument, Colorado, where the median home value is about $743,000, according to Zillow. In Fishers, Indiana, where they previously lived, the median home value was $426,000.
In the coming years, one lifestyle change could put additional stress on the couple’s finances: They’re expecting their first child, which they know will come with a lot of new monthly expenses.
However, Arsenault said he thinks his financial goals are still achievable, in part because he and Ryan have planned their life with a newborn baby. They have even planned how to finance their child’s college education.
“We’ve started saving for a 529 plan so they can go to college,” she said, referring to an investment account that offers tax-free withdrawals when the money is used for certain educational expenses.
Are you part of the FIRE movement or live by some of its principles? Contact this reporter at jzinkula@businessinsider.com.
