Going Up in Flames: What Failing at FIRE Would Look Like

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I Have Not Failed. I’ve Just Found 10,000 Ways That Something Won’t Work.” Thomas Edison

Thanks Edison, I needed that balanced statement to what sounds like a negative title. However, I do believe studying worst-case scenarios is important to know what to avoid.

Failing at FIRE can take on many forms and can be different for each individual. In general, failing at FIRE means that you have not achieved the level of financial independence or retirement that you had planned for.

I would consider these as some possible scenarios that could constitute failing at FIRE:

  1. Running out of money: If we retired early and haven’t saved enough money or planned for unexpected expenses, we could run out of money and be forced to go back to work.
  2. Lifestyle Inflation: If we’re able to achieve financial independence but then start spending more money than we had planned for, we may have to go back to work or reduce our standard of living. Read: Taming the Lifestyle Inflation Lion / Lioness
  3. Unexpected expenses: Life is full of surprises, and unexpected expenses such as medical bills, home repairs, or family emergencies can quickly eat into savings and throw FIRE plans off track.
  4. Poor investment choices: If we make poor investment choices or put all our money into one asset class, we could lose a significant amount of money and delay our retirement plans.
  5. Inability to adjust to retirement: Retirement can be a major life change, and some people may find it difficult to adjust to a new routine or to find meaning and purpose in their lives after retiring.
  6. Sacrificing our present happiness for a future that never comes: If we are so focused on saving and investing that we neglect our relationships, hobbies, and personal growth, we may (almost definitely) end up with regrets later on. Life is short, and it’s important to enjoy the journey along the way.

I’ve read of two particularly interesting examples:

  • Suze Orman. Orman is a well-known personal finance expert who has advised many people on saving and investing. However, in 2018, she admitted in an interview with Yahoo Finance that she had retired and then returned to work due to a lack of financial security.
  • The author of Living a FI. I personally enjoy his blog and his candidness how the best laid plans just simply fell through, and a perfect example of how sometimes, these things are completely out of hand and unexpected.

But it’s really not all doom and gloom. I hope the list simply illustrates that there’s really just 2 possible outcomes:

  1. Go back to work
  2. Regret on not being present during the journey

All things considered, #1 ain’t all bad at all. #2 though, that gives me the heebie-jeebies. Achieving financial independence is a challenging goal, and it’s natural to make mistakes along the way. However, with all failures be it real or scenario-analysis, the best course of action is to reflect, adjust the strategy, and keep pushing forward.

As an ending note, I truly believe that even if one doesn’t achieve financial independence or retire early, it doesn’t mean they’ve failed at life. The key is to pursue goals with intention and passion, learn from mistakes, and find joy and fulfillment in the present moment.

Author: Ms.K

Ms.K is everything that Mr.C is, without the natural interest in investing and company financials! The activity planner for the family, the driver of random ideas and soon to be ‘retiring’ in to full time motherhood – Ms.K has no idea what she’s in for but remains super excited!
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2 Replies to “Going Up in Flames: What Failing at FIRE Would Look Like”

  1. I think the idea of going back to work as being no big deal might be disastrously naive for many people. I retired only slightly early at 60. But it seemed early to me because I truly enjoyed what I did and originally planned to keep working full time to closer to 70, even though I was already well past my FI number. When I retired I considered I might go back to work at a future date if retirement wasn’t satisfying and fulfilling. Fortunately retirement is the most amazing thing I’ve ever experienced, it is simply wonderful. All that is to say this, if I was economically forced to go back to work to support my family expenses it would be awful! I am addicted to the time and money freedom I have now. A recruiter offered me seven figure compensation, far more than I ever made working, to go back into a full time executive position. It was the most absurd thing ever, I’d never give up this life for a few more millions. Going back into full time work or even heavy part time work after this, it might be very hard to take is all I’m sayin. You just don’t know what your missing if you’ve never been retired and have enough financial means to live a rich life.

    1. Thank you for sharing your experience and insights with us. I completely agree that going back to work after experiencing early retirement can be a difficult transition for many people who have experienced FIRE. It’s amazing that you have found such fulfillment and satisfaction in retirement, and I’m glad that you have been able to enjoy the time and money freedom that FIRE provides.

      At the same time, I do believe that it’s important to keep a balanced perspective on the potential challenges of going back to work. While it may not be ideal and perhaps hard, it’s important to remember that it’s not the end of the world if you do need to go back to work for financial reasons. And in some cases, it may even be a positive experience if it allows you to pursue work that you find fulfilling and enjoyable.

      Personally, I am going on the mindset perspective that it’s not a failure at all if once has to go back. It can be enriching, and that FIRE would have afforded them a good few years in their prime still before having to go back, which is a WIN. I also understand that everyone’s situation and experience will be unique, and approaching the topic of going back to work with a glass half full approach can only be beneficial.

      Thank you again for your thoughtful comment, and I wish you continued happiness and fulfillment in your retirement. In fact I’d love to hear more, especially with my post this week on a pet bug worry!

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