How did you FIRE?

[pugmom]

I hope this is not something that has already been done. I was wondering how people that consider themselves FIRE'd *did* it. And if it is not too over-simplified, I thought of only two categories:
1. Traditional professional careers: medicine, law, engineering, computer science, etc.
2. Everything else - mostly I am thinking of self-started businesses, e.g. owned tire store, print shop, etc.

 

[Walt34]

I did it the old school way - in 1973 I took a public safety position for a career, stayed there just shy of 30 years (normal retirement is 20 years) and have a COLA'd pension. BTW, they stopped offering that pension plan in the early 1980's but didn't change it for those who were already in it. So in more ways than one it's fair to say I just got lucky. Also, the pension plan at last report was 102% funded - you only read about the ones that are in trouble.

 

[Midpack]

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.

 

[jebmke]

Two-incomes (for a while) and disciplined saving plan. Spending based on one income (mine).

 

[38Chevy454]

1. Practiced LBYM
2. Paid myself first

I was an engineer and DW was registered nurse. But the resl answer to the question is 1 and 2 above.

 

[pb4uski]

I hope this is not something that has already been done. I was wondering how people that consider themselves FIRE'd *did* it. And if it is not too over-simplified, I thought of only two categories:
1. Traditional professional careers: medicine, law, engineering, computer science, etc.
2. Everything else - mostly I am thinking of self-started businesses, e.g. owned tire store, print shop, etc.

We lived below our means, saved and invested reqularly, didn't do anything stupid.

I recall when we moved in 1986 the numbers all suggested that we could get a $xxx,xxx house... but a house that had good bones and was a cosmetic fixer-upper was available for 1/2 of that so we jumped on it. Our investment strategy was slow and steady wins the race and we just invested regularly into Vanguard STAR mutual fund in taxable and the equity fund choices that I had in my 401k. We didn't even think about using our tIRAs or 401k for a new car, new boat or splashy vacation. We usually bought 2-3 year old cars with low miles on them and kept them for a long time and serviced them regularly.

It helped a lot that I had a good six-figure income that enabled us to do that but I think we would have even if I hadn't in that DS is LBYM and saving well even though he doesn't make a lot... but it's all relative.

ETA: or what Midpack said.

 

[youbet]

FIRE myths:

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

Italics mine.

My version. Any of these things, while certainly not an absolute necessity, can certainly help to reach a secure, early retirement. But generally, and if you want a solid middle class lifestyle and an early retirement which continues that lifestyle, it sure helps to get a leg up in some of these areas.

For example, I counseled my DS that finding a career path that paid reasonably well, learned more about investing than the average citizen and understood lbym'ing so there is something to invest would greatly enhance his ability to someday FIRE.

I understand your point though.......

 

[SnowballCamper]

At a young enough age, I stopped wasting money and got a good scholarship for college. Since I had lived on much less money before college, I knew how to live without spending the whole paycheck after college.

My initial investments were high commission products, but I continued to read and ask questions, and learned DIY index investing early enough.

I was willing to move around a lot for work, and put in a lot of long hours in a sometimes high risk job. The work could be terribly bad, but it came with a cola pension IF you stayed on for 20 years.

I married a financially compatible woman.

I completely agree with the others...the most important thing is to live below your means.

 

[RobbieB]

I would say save and invest.

If you are saving & investing say at least 10% and not living on debt (except mortgage) you should have no problems.

 

[Midpack]

My version. Any of these things, while certainly not an absolute necessity, can certainly help to reach a secure, early retirement.

I don’t disagree. But I’ve met many more people than not who insist FI/FIRE are completely impossible unless you’re rich and/or (the myth list in post #3) - that’s what “myths” was aimed at. Like many here when I announced my retirement early, quite a few people were mystified, and were openly convinced it was all luck of some sort.

 

[FLSUnFIRE]

It was the money I saved when I earned less than half my final salary (which plateaued about halfway through my career) that did the yeoman's work in getting me to my FIRE number.

Start early, LBYM, Invest the difference, learn from your mistakes. Time>Money both in life and in the market.

 

[REWahoo]

How did I FIRE?

With a huge grin on my face!

 

[mojavesue]

We did it by saving a large percentage of our income and some luck. Started really getting serious in our early 30s. Between the both of us we never made over 150k a year in the automotive industry and most years less than that. We started by paying off our house. That was done in 4 years. After that we basically lived on less than one income and invested the rest. Fast forward 15 years and we were at a net worth of a little over 2 million. At that time we started taking care of MIL as her dementia was worsening and couldnt live on her own any longer. A few years later she passed and we received a sizeable inheritance of about 2 million. So in our case it was a lot of sacrifice initially. Then the inheritance finished the deal. We werent sure what that amount would be early on but wanted to be free from the chains by 55 regardless.

 

[rodi]

Like most of the others... Lived frugally, banked/invested the difference. 2 incomes, but after the kids were born we both went to 80% work (and 80% pay) for work-life balance... even with reduced income we set our budget to live on one income (mine) and banked the other. Hubby was an architect, I was an engineer. Hubby's job paid less and was prone to economic downturns. But we managed to save even in lean times.

When we paid off our mortgage and had the kids' 529's pretty well funded, I retired. Hubby retired first since he's older and could get SS.

 

[martyp]

I suppose I did it the old fashioned way. I had a career as an engineer in a national scientific laboratory. I worked at the same place for 30 years. I got a COLA’d pension and Social Security. I lived below my means and saved money. I certainly did not make much money on investments. I am much better at quantum mechanics than investing. To the extent that luck was involved it was that we never had any life disasters to set us back. I also retired to Thailand which helps stretch the $$.

 

[rk911]

I did it the old school way - in 1973 I took a public safety position for a career, stayed there just shy of 30 years...

my wife and I did much the same. i had 35-years in public safety, 5-yrs in adult and juvenile corrections amd 30-years in 9-1-1 (some of that time was prior to the establishment of 9-1-1). but beyond the defined benefit pensions, which we considered to be just one leg of the 3-legged stool plan, we lived well beneath our means for decades...paid off all debt including the mortgage a few years before we retired at 55 and incurred no further long term deb. we paid off the credit cards each month, fully funded our IRAs each year (although they were non-deductible) and invested heavily in mutual funds. in the last couple of years before retirement we each had access to a 457b plan in which we took advantage. we had a positive cash flow of at $k-$5k per month which was invested. my pension plan is 93% funded but my wife's is just about 50%. we were both able to stay on our employer's health plan until we reached age 65 although we paid the premiums.

we're 71 and 70 now and continue to live well beneath our means with a positive cash flow. we want for nothing, donate heavily to various charities and we are still investing. our net worth is in the upper 7-figures. i calculate our net worth weekly and rememnber being stunned the first time our net worth crossed over into 7-figures. from there it just kept growing. inheriting a bunch from my BIL was just icing on a very nice cake.

 

[Sue J]

DH worked 5 years in a job with a public pension. He left that to go get his Masters degree and we cashed out his pension to help pay for the 2 years of graduate school. When he graduated he worked few years in the private sector and then took another public service job, back in the old pension system. But he had earlier cashed out his 5 years of service!

By this time I was a full time mom. We knew back then that buying back his years that he cashed out would be a smart thing to do, but we had young kids, a house and cars to support, etc. By the time we got serious about buying back his pension years it had been over 20 years and we had to buy it back with interest! But it was well worth it as a few years later he lost his job but had enough accumulated years and repurchased years to retire early with a reduced pension. It was further reduced by choosing 100% to survivor.

We had always lived below our means, even in the early years with kids. I am a natural saver and DH is a good earner but financially wears blinders. He just doesn't want to know. We were prepared for him losing his job by becoming debt free and having a low cost of living. When his job ended we were ready and he was able to retire.

 

[Dash man]

Stayed out of prison.
Survived cancer.
Lived debt free and below our means.
Saved large part of our salaries.
DW received stock options in her company that thrived during the “lost decade” after a merger. We would have done well, but the stock options made it better.
Diversified into some well performing stocks.

 

[RetiredAt49]

Computer science degree + patents + working for big software companies and making a great salary + RSU’s + downsizing = RetiredBy49

Oh… and I recently married someone with as much or more money than me [emoji16]

 

[MRG]

Went from logging and sawmills into programming.

 

[NW-Bound]

I hope this is not something that has already been done. I was wondering how people that consider themselves FIRE'd *did* it. And if it is not too over-simplified, I thought of only two categories:
1. Traditional professional careers: medicine, law, engineering, computer science, etc.
2. Everything else - mostly I am thinking of self-started businesses, e.g. owned tire store, print shop, etc.

I belong in the 1st group, but I believe the most important thing was I practiced LBYM. Having a good pay does nothing for you if you spend it all.

I would do a lot better if I knew more about investing, and not kept so much in safe but low-yield instruments when I was younger.

 

[BuysToys]

Neither DH nor I had high paying jobs. We were run of the mill, ordinary worker bees for most of our lives. Although we married late in life, we both had pretty much had the same plans for retirement (not early) and saved for it. I always invested 15% of my paycheck into my 401(k) when I had one available. When I didn't, I maxed out my IRA which was converted to Roth when that became available. DH worked in a job with a pension, so he didn't invest as much, but he did LBHM.


We didn't really plan for FIRE, it happened due to disabilities. There's a long story behind that, but I'll save that for another time. Between our SSDI, his pension, and <3% withdrawals from his IRA, we pretty much live better than we did when we were working. We have more disposable income now, anyway.

 

[rwdflynavy]

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.

 

[Badger]

The smartest thing I ever did was to marry at age 39 to someone who was low maintenance. We agreed on how to handle money and I kept her informed on anything I was considering doing. We lived a frugal lifestyle on low teachers pay. Drove old cars until they were not worth fixing. Paid off mortgage in a modest house and all other debts by about age 45 then for the next 20 years we invested in tIRA and Roth IRA to the max and then more into taxable stocks. We knew all pensions combined were going to be less than 10k/yr so we prepared like there was going to be no pension. Found many ways to vacation on the cheap by mostly tent camping. Other more expensive trips were worked related. We never argued about money. I was lucky.

Cheers!

 

[ImThinkin2019]

Engineer and chemist here. So reasonable salaries. Then chemist turned IT person which increased salary (like double).

Lived below our means. Drove used cars, bought fixer-upper houses. Never looked rich.

Always filled 401(k) plans and IRA's. For much of our life, we could put about 25% of our salary into 401(k)'s so we did that.

Saving came first, then we lived on the rest.

We did make some bad investments and lost money along the way. But kept investing in mutual funds and the market helped us over the long term.

Like many here, we lived through 1987, 2000, 2008, 2019, and are living through this one. The best thing we did during those downturns was 1) keep investing, and 2) nothing else. Just sit there.