How did you FIRE?

[lem1955]

Luck and Focus

1) Made a smart job change at 33, where my salary increased rapidly for the next 22 years and the employer paid over 20% of my salary to a 401k. My contributions were additional.
2) Read A Random Walk Down Wall Street in my 30’s and adopted the no market timing, no stock picking, AA and low cost mutual fund strategy and stuck to it.
3) Chose the right spouse and stayed together.
4) Lived in a place without a constant presence of things to buy. Rural VT.
5) All of the above allowed me to LBYM without feeling deprived.
6) Worked enough between age 56 and 60 to allow my 401k to recover from the 2008-9 Recession. (At a much lower paying job.)

 

[mrfeh]

Option 1 - good paying job, lived frugally and invested.

 

[Stormy Kromer]

Bought a small business at age 21, worked it myself with very little hired help for 29 years and sold it. Will live off of those proceeds for 10 years til I begin living off of IRA and taxable accounts with a planned withdraw rate under 2%.

Investment discipline would be the #1 factor.

 

[Surewhitey]

1. Getting married
2. Staying married
3. Spending the smaller of 2 salaries for 20+ years (still waiting on the rainy day)
4. LBYM especially in housing & "stuff" spending
5. Maxing out tax deferred accounts

We've made plenty of mistakes too, but the above outweighed the dumb ones.

Career wise, I was in manufacturing (printing/packaging), DW in insurance. Started at about the same and then she left me on salary / bonus...

 

[pugmom]

Thanks to all for sharing! DH and I both got into computers more or less via the back door.. he majored in Philosophy and I business.. both of us had taken a programming class, and it was enough to get a job as an entry-level programmer, both of us at banks.
So while we had very good incomes and no children, we followed much the same path as others. We lived below our means; we bought good properties (e.g 2nd beach home acquired in 1995 and kept to this day) and spent lots of sweat equity fixing them up; we started saving for retirement right away (that is 40 years ago this year); we maxed out our 401Ks.
We saw many co-workers with the exact same salaries and situation end up with very little by not following the basic FIRE rules most have listed.
The one other BIG item was that DH worked at 3 tech startups and one was acquired, making stock options valuable (less than 1M). ---- you are all probably rolling your eyes with that one.
DH retired at 61 and I retired from full-time work in 2001 at 46, but did contract work and part time until 63.
I have tried to engage our nieces and nephews about the importance of starting early... they sort of acknowledge it but I am not sure if they really get it.
Thanks again!

 

[scrabbler1]

Here are my steps toward FIRE at 45, 13.5 years ago:

(1) No kids, I am childfree, by far the best decision I have made in my life, and the biggest reason I could FIRE at 45.
(2) Stayed single.
(3) LBYM, which includes low-cost hobbies.
(4) No debts, other than a mortgage I paid off in 9 years and student loans I paid off in 2 years, the two never overlapping.
(5) Took a piece of advice I heard decades ago when looking for apartments to buy - seek out the worst apartment in the best building. For me, it was a mediocre apartment in a well-run co-op apartment complex. I have lived here for 33 years.
(6) Found a career in which I could be a "big fish in a small pond," making me indispensable while giving me the leverage to get good pay raises and reduced working hours in my later years when I grew tired of the awful commute to work.
(7) Had some luck - my employer set up a company stock program (ESOP) during my peak earning years, thereby maximizing the number of shares allocated to me. I was able to cash out these shares after their value grew by around 3 thousand percent in 11 years, greatly helping my ER plans without touching my 401k/rollover -IRA.
(8) Bought good, reliable cars, the last 2 I have owned at least 15 years.

 

[harllee]

I am a licensed professional and had my own business that was fortunately very successful and I made a lot of money and I retired at age 52. No pension but I had a large 401k. DH worked for a large corporation and retired in his 40s with a small pension. I still worked after DH retired for a few more years and DH started flipping houses, he is very handy and could do most of the work himself. DH made a lot of money flipping houses, more than he ever made in the corporate world. When I retired at age 52 DH quit flipping houses and we traveled the world. We are now in our early 70s so we have been retired over 20 years. We live frugally but have and do everything we want. I waited until age 70 to take SS and our SS payments are enough for us to live on if we needed to.

 

[pacergal]

After a few jobs working 24/7, we kind of fell into our "career" jobs. I was looking for a M-F, 9-5 after working nights in the hospital, DH had been working overnight security at a Catholic Charity mens home and desired higher pay.

Both ended up with 30 and 35 years in public service( law enforcement and RN), govt pensions and started contributing to 457 plan when it was made available.
Followed my parents guide: Give to God (or religion of choice), give to yourself (save), then live on what's left.
Made plenty of mistakes along the way, and retirement was always "a long ways" away.
Didn't really start investigating until in our 50's and able to retire at 60.
Not early by some, but earlier than we thought.

 

[COcheesehead]

Three legs on our FIRE stool:
Biggest leg - saved and invested over 30 years.
Second biggest - started a business, ran it for 24 years then sold it.
Third - invested in real estate. Sold most of it.

 

[PandaBear]

Luck and our own efforts.
Luck that we both had help with college, although dh did the JC route and I took our loans.
Luck that we lived where we were raised and my mom did child care. I worked part time but advanced each year on the salary schedule (I work in education). So I maxed out on salary and have those years as part of my pension.
Luck that dh and I both took jobs with pensions (we weren’t thinking about retirement back then.
Luck that an older employee encouraged dh to put money in the 401k plan (what? What’s that?) when he was 22.
Luck that our kids didn’t have special needs which could have meant doctor bills, special tutoring, etc.
Luck that both are parents were good role models.
Luck we never had major medical issues (including mental health) for ourselves or our kids.

Our own efforts
We lived in a very HCOL area but never “moved up” homes so it’s paid off. Which means since we’re in CA, our property taxes are also lower.
Never had credit card debt.
While we could afford to pay for college, we didn’t allow our kids to apply to schools out of our price range, to avoid debt for ourselves and them.
Drive our cars 10-12 years each. Bought quality (typically Honda) that were about a year old when we got them.

 

[karen1972]

I was an engineer, though reality is so was another 120,000 people at my company and yet most of them went on to retire at a normal age and still complained nonstop they couldn't afford xyz, so clearly that is not the solution to FIRE.

My brother went to trade school as a diesel mechanic, lives in a LCOL area, lived way below his means and made himself invaluable to his boss who has a decent family owned business. On his own from saving he is FI; however last year they made him a silent partner giving him a small share of the business which puts him in a completely different category as that business is extremely cash flow positive this he grew a very large extra leg of the stool.

 

[Teacher Terry]

My second husband was a tool and dye maker and I stayed home until the youngest went to school and then I went to college. We were frugal and he was in charge of the finances. I knew we had close to a million 22 years later. What I didn’t know was that he hid all of it except for 100k in his work 401k.

I should have hired a private detective once I realized after filing for divorce to find the money. He was verbally abusive and could explode so part of me was afraid he might kill me if I found the money. Needless to say a few years after the divorce he told me he didn’t need his pensions or SS to live. I still have to interact with him nicely for the sake of our adult kids. So I sacrificed a lot for nothing.

Husband number three wasn’t good with money and made some bad investments. Luckily I kept my retirement money separate. My retirement would be very different if our money had been shared equally. My kids will inherit when he dies and he’s 9 years older than me.

 

[harllee]

My second husband was a tool and dye maker and I stayed home until the youngest went to school and then I went to college. We were frugal and he was in charge of the finances. I knew we had close to a million 22 years later. What I didn’t know was that he hid all of it except for 100k in his work 401k.

I should have hired a private detective once I realized after filing for divorce to find the money. He was verbally abusive and could explode so part of me was afraid he might kill me if I found the money. Needless to say a few years after the divorce he told me he didn’t need his pensions or SS to live. I still have to interact with him nicely for the sake of our adult kids. So I sacrificed a lot for nothing.

Husband number three wasn’t good with money and made some bad investments. Luckily I kept my retirement money separate. My retirement would be very different if our money had been shared equally. My kids will inherit when he dies and he’s 9 years older than me.

Terry, wow, just wow. What a rough time you had and I am so sorry. I am so glad you still have your retirement money. You are a tough lady.

 

[Ronstar]

2 incomes, no kids. Both DW and I worked 40 years. She had a 401k, So did I - I maxed mine out every year.

DW worked as a clerk at a local nuke plant, I was part owner of an engineering/ land surveying firm.

I bought a vacant lot in the mid 70's. Paid off the note, sold it and used proceeds for a bigger lot. Built a house on that where I did most of the work. Sold that, took proceeds and built a bigger house. Paid it off in 2000 and started investing more money in the market.

LBYM the whole way.

 

[pletal]

Great stories everyone, it’s a long road.
My story is rather short and boring. My father told me to save 20 percent of my take home pay and never spend it. Been doing it for 40 years. Never spent any of it. Invested some, mostly conservative, and am Ok with it. Marry someone with good saving habits

 

[harllee]

A common theme seems to be to marry a like minded spouse and many of us do not have children. Children can be wonderful but they are very expensive and can derail early retirement.

 

[friar1610]

I'm a 1. Professional career.

28 years in the Navy with a generous pension plus untaxed VA disability payment. Generous low-cost medical coverage helps too.

It was a lot more luck than skill and without the pension, our fairly paltry savings wouldn't have allowed me to retire at 49.

We spent most of our years spending more than we made and putting the rest on credit cards with minimal savings. About 10 years before my military retirement, I started reading blogs like this one, MMM, others and we started to get our "stuff" together.

Similar story here: 28 years USN. Started getting serious about investing about the 12 years point. Were probably a bit more conservative with our spending and car/home-buying than some of my Navy contemporaries.
Retired for good at 58 after about 6 post-Navy years as a “Beltway Bandit”. During those years saved a LOT and fought the tendency to let expenses greatly increase up to the newly enhanced income level (Navy pension + good salary).

Without a doubt, though, the inflation-adjusted pension is the primary contributor to a comfortable retirement. In retrospect, I could have retired several years earlier and been fine.

 

[iloveyoga]

The long and boring way, although we did not really know it at the time.

DH and I both worked for many years at good paying jobs with benefits, including our DB pensions and 401(k).

We lived very modestly and paid off any debt we had early and then in the 2011 we paid off our house and stopped borrowing for cars. We both always put $$ in our 401(k) and savings. I worked with retirement plans so I followed the advice we gave our customers for saving and also investment allocation.

DH retired first in 2004 and I followed in 2013 and we have not looked back.

 

[Teacher Terry]

Thanks Harlee. When my kids talk about the new cars, etc that their dad is buying it’s difficult not to be bitter but it would only hurt me. I live on a tight budget with my income only being 31k/year and a small amount in savings for emergencies. Needless to say I haven’t been so good at picking husbands.

 

[Monterey298sc]

Family owned business for 136 years. I am the 4 the generation. I now have 30 days left. We listed 2 commercial property’s for sale , Both sold both close June 30th. . Scared to death, but excited.

 

[milford]

While being a doctor or a lawyer can make it easier, some of them spend money as fast as they make it - and won’t FIRE. The formula is the same whether your career pays modestly or a bunch - those who think you have to make a lot of money to FIRE don’t “get it.” You MUST make it a habit to spend less than you make over the long term to reach FI and FIRE if you choose - period.

To retire early, you have to make enough money to guarantee a decent living after retirement. This has to be done early. The process is simple:

1. Earn more money.
2. Spend wisely.
3. Save and invest wisely.

Most people don’t do any of the three, and then wonder how others FIRE. You can FIRE with only 2 & 3, 1 can make it easier but it’s not necessarily required.

The more you spend below your means, the sooner you can achieve FI, and then ER is an option.

FIRE myths:

• You have to have a high paying career.
• You have to be an investing wizard.
• You have to win the lottery, or inherit a large amount.
• You have to live like a pauper.
• You have to have a generous pension (beyond SS), but that can certainly help.

ALL FALSE. It does require planning and discipline that most people don’t seem to have.

Great summary... the steps are quite simple, but the execution is not easy. I have friends that make a ton of money, but don't save a penny because they are always "keeping up with the Joneses". Friends that are great savers, but listen to colleagues and started "investing" in (bitcoin, ARK funds, SPACS, penny stocks, etc...), funniest thing is when they try to convince me to jump in as well. Also a lot of times people go off course since it takes a while to see the possibility of FIRE as investments take time to compound, but once it starts rolling you are probably closer than you think

 

[athena53]

For me, it was a combination of things and I managed it despite a first marriage to a spendthrift who believed that any credit line he had left anywhere was money to spend.

I saved steadily my whole adult life and stayed out of debt except for a mortgage and occasionally a car loan. I started investing early- fortunately I enjoy it.

I made a lot on two primary residences in NJ- the one I owned with my Ex and the one I bought after the divorce using my share of the equity in the pervious home as a down payment. That one sold when I remarried and we moved to a LCOL area for my job- DH was 15 years older and already retired.

Second DH and I easily agreed on financial priorities and he had decent income from SS and some freelance income for awhile. When his house in NJ sold he handed me the check for $100K and said, "You invest this in your account. I don't want to bother with it." He had simple tastes- he'd grown up poor. Modest cars, no designer furniture, no fancy clothes except my work wardrobe. Rarely ate in restaurants. We were passionate about travel and I became an expert in working the loyalty programs.

I also had luck or the grace of God, depending on your beliefs- good health, steadily employed, marketable skills.

I retired at 61- not that early- but 8 years out, I'm still eminently solvent.

 

[lauradrops]

My husband and I were not high earners, but we were both big savers.

My husband took a buyout from Verizon after 30 years at the age of 48. We put that into the market in 2010 and let it ride untouched for the most part until 2021. We were well rewarded with that.

We also moved to a lower cost of living state for 7 years where my husband fell into a nice "second career job" for that 7 years. That enabled him to have another 401k that the company contributed to. I continued my work as a hairdresser (colorist) as I can work anywhere.

In 2019 we made the move back to NY and both fully retired. We realized we had more than enough to be happy and leave the kids a nice bundle.

The key to our success was LBYM and hard work.

 

[ncbill]

A common theme seems to be to marry a like minded spouse and many of us do not have children. Children can be wonderful but they are very expensive and can derail early retirement.

1. yes

2. yes they're wonderful, but no, not that expensive...at least if you act towards them as a parent, not as a friend.

 

[pugmom]

OP here... thanks to all for sharing. It is sometimes easy to forget that the most conspicuous spending is literally all fake. And as others have pointed out, making tons of money does not equal FIRE if you spend it all.
We came later to the Bogleheads style of investing, but I am pretty sure that a few thousand $ in an S&P index fund 40 years ago would have done even better than we did.
Having a goal and being disciplined is pretty universal among these stories.
Thanks again!