Is FIRE (Financial Independence Retire Early) Biblical?
One thing that’s been gaining momentum within the last decade, but has been around well over 30 years, is the FIRE movement. FIRE stands for Financial Independence Retire Early and I’ve had more and more Christians ask me my thoughts on it and how it pertains to stewardship.
General Concept of FIRE
The basic concept of FIRE is to drastically minimize spending (and can be to the extent of extreme frugality), look for ways to increase income (often passive income), and generally save an above-average amount into a mix of different investment accounts during your early to mid career in order to hit a predetermined savings goal so you can retire early. And when I say “early” I’m referring to an age prior to the traditional age within the 60s.
The retire early concept comes from the notion of regaining freedom and independence over your time, and life, instead of trading it for money until the conventional retirement age. If you haven’t done so, check out this piece that advisor Ben Wacek wrote on what the Bible says about retirement.
There are various types of FIRE that exist such as but not limited to:
Lean FIRE: For those that believe in, and can maintain, a minimalist lifestyle. It’s not uncommon for these folks to save over half their income due to their ability to keep their expenses low.
Fat FIRE: For those that want to live a more lavish retirement. As expected, these individuals required a higher annual save due to their larger needs in retirement. For example, someone that may need $200,000 in annual expenses from their investment portfolio would need to save approximately $5,000,000 according to the 4% rule (only withdrawing roughly 4% of your investment portfolio each year).
Coast Fire: For those that aren’t necessarily trying to “retire early” but rather save and invest in a manner in which they can “coast” into retirement.
Barista Fire: For those that aren’t necessarily looking to stop working altogether but rather save enough for retirement WHILE continuing to work part-time, working less, or semi-retiring.
Spiritual Implications of FIRE
While saving is biblical, we need to explore the other spiritual impacts of pursuing FIRE.
Spiritual Implications of Extreme Saving
One of the main components of pursuing most, but not all, types of FIRE is saving that ranges from above average to an extremely high amount towards your early retirement needs. While extreme saving may be necessary for some in order to catch up for lost time, it isn’t necessary for others that have been adequately saving.
In Proverbs 6:6-8, we can see the wisdom of saving through the vivid example of the ant preparing and gathering throughout the seasons. With that being said, saving can become a harmful idol the more extreme and excessive it becomes. Extreme frugality tends to accompany extreme saving which can amplify the danger in this strategy and lifestyle.
Solomon, one of the richest and wisest men in history, had this to say on extremes:
“It is good that you should take hold of this, and from that withhold not your hand, for the one who fears God shall come out from both of them. Wisdom gives strength to the wise man more than ten rulers who are in a city.”
Ecclesiastes 7:18-19 (ESV)
Also, let us not forget the parable of the “Rich Fool” who had a bountiful harvest and built larger barns to store his grains and goods only to have his soul required from him shortly after. This parable is an important reminder that material wealth is fleeting, that our focus should be on richness towards God and our treasure in heaven, and that giving breaks the power of money over us.
When we focus on extreme saving:
We allow ourselves to serve money instead of fully serving God
We presume, in an extreme way, on “tomorrow” (James 4:13-16)
We steward with a focus on our desires
We leave very little room for giving and generosity
Spiritual Implications of Pursuing Independence
As an advisor, there’s a fine line on this point. Professionally, it’s my job to help my clients save for a time when they may not be able to earn an income for themselves, or their family, through work. This is a degree of financial independence (being independent of paid work or other prior income sources).
However, the point I want to make is that when we generally try to become more “independent” in our lives it often comes at the cost of being less dependent on God which is detrimental to our faith.
Financial independence in the context of FIRE tends to focus and revolve around “I”. I will save significantly more now so I can retire early and live the independent life that I want to live.
I believe it’s important to remember that it all belongs to God (Psalm 24:1) and that we’re simply stewards of what He’s allowed us to manage. Because we’re stewards, every financial decision is a spiritual decision. We should consistently depend on God’s wisdom and guidance from the Holy Spirit on how to proceed with what we’re stewarding.
“Trust in the Lord with all your heart, and do not lean on your own understanding. In all your ways acknowledge Him, and he will make straight your paths. Be not wise in your own eyes; fear the Lord, and turn away from evil”
Proverbs 3:5-7
Spiritual Implications of Ceasing Work
Work is good. Full stop.
God created man and later assigned him to “work and keep” the garden of Eden (Genesis 2:15) and this all happened before the fall of man. So we can see that work was designed to be good and filled with purpose.
With the fall of man we see that work became harder (Genesis 3:17-19) but that’s not to say that it’s without benefit or purpose.
Whatever the desire may be to quit work early (hard, dislike subordination, financially able, etc.) the reality is that you were designed to bring value to this world through the work that you do. This brings glory to God. Just because we may have the means to stop working doesn’t mean that we should.
Similar to pursuing independence, the desire to quit working while you’re still able is purely an inward focused desire that often leaves individuals unhappy due to a lack of purpose. Note that some individuals may find themselves unable to physically or mentally work but this isn’t what I’m addressing.
“Whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward.”
Colossians 3:23-24
I do want to make the distinction between retiring early from paid work to live a life of leisure and retiring early to transition into other types of “work” (pro bono, volunteer, caretaker, ministry, semi-retirement, etc.). The latter is still work and applying our gifts to the world around us to bring glory to God.
Strive for This Instead
So based on this information, how should we proceed?
Reasonably save for the future. Working with a financial advisor to create a “financial finish line” is a great way to start with the end in mind and determine what you need to be saving today.
Enjoy today what God has allowed us to have and steward. God created everything to be enjoyed and that He may be glorified through it.
Acknowledge that everything belongs to God (Psalm 24:1) and steward accordingly. When we acknowledge, and believe, that everything belongs to God, and that we’re stewards, we can really begin to faithfully manage what He’s entrusted to us.
Generosity is key. Giving breaks the power of money and the fleshly desire to focus solely on what we want. It also allows us to participate in the glory of God!
Accountability is helpful. We aren’t meant to grow in our faith alone. Having trusted people (advisor, small group, mentor, etc.) in your corner to hold you accountable can be extremely helpful for when you feel the world tugging at your heart.
Our advisors here at the Christian Financial Advisor Network are experts in working with their clients to properly plan for the future but also steward well today. Please don’t hesitate to reach out to one of our advisors should you need any guidance with your personal finances.
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