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He had been working three jobs, 12 hours a day, to build his financial portfolio.
He had four houses, including threeinvestmentproperties, and had amassed about $1.65 million in equity plus savings.
He was comfortable, yet afraid to quit two of his three jobs.
Dave Ramsey and his co-host asked the caller why he felt so worried.
The caller said hed been part of the FIRE movement financial independence, retire early.
Heres what Ramseyhad to say about the FIRE movement.
What Is FIRE?
This ambitious goal requires participants to live lean and earn as much as possible.
For people like Ramseys caller, that means working multiple jobs.
Ramsey on FIRE
Dave Ramsey is one of the biggest financial household names in the world.
You might expect him to praise a lifestyle that involves earning and saving as much as possible.
But, according to Ramsey, FIRE doesnt work.
As he said to his overworked caller, The fire movement burned down, did you notice?
It burned around peoples ears because they were trying to do something that wasnt sustainable.
He explains that FIRE is about building a portfolio, not a life.
And although FIRE devotees think theyre working toward an achievable goal, the finish line keeps moving.
Ramsey explains that theres always a reason to keep hustling.
Sometimes, its a fear of scaling back.
Living on less feels like living in poverty.
The other driver is a desire for a more decadent lifestyle.
Once you get on that treadmill, Ramsey said, you cant catch that carrot.
Why FIRE Is Burning Out
Ramsey is one of many seeing these problems with FIRE.
Another is Sam Dogen, also known as the Financial Samurai.
Dogen believes that the drive for work flexibility ismaking FIRE obsolete.
He began exploring and promoting FIRE because of work burnout.
He achieved early retirement at 34 and became one of the pioneers of the modern-day FIRE movement.
Now, he believes FIREs time has passed.
Money expert Tim Denning agrees, calling FIRE the dumbest money trend in history.
He believes FIRE relies too much on a scarcity mindset, which makes life less enjoyable.
He urges potential FIRE devotees to leave that mindset behind and focus on earning.
In the internet age, he says, earning is easier than ever.
Financial Inaccessibility
For most people, FIRE is psychologically and financially unfeasible.
As finance writer Michelle Jackson explained toBusiness Insider, FIRE depends on a high salary and no debt.
Most Americans dont have that kind of freedom.
The median salary nationwide is $70,300, which means half of Americans earn less.
Then, theres inflation.
Inflation is currently at 3.4%, ranging from 1.2% to 6.6% over the past 10 years.
Can Anyone Catch FIRE?
Unless youre already close to financial independence, FIRE may not be a feasible goal.
It requires extreme frugality, often to a degree that limits your enjoyment of life.
Self-denial is a difficult way to spend your 20s and 30s.
FIRE also requires you to earn high.
Even then, youll only be replacing up to 50% of your pre-retirement income approximately $53,000.
If you want to live more comfortably, youll need to earn even more or cut back further.
For example:
As Ramsey often says, retirement planning looks different for everyone.
Its important to set goals that will work for you, considering your current income and desired retirement lifestyle.
From there, you’ve got the option to develop a customized savings plan.
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