It’s always fun to unearth some esoteric piece of personal-finance history. I know there are only a few nerds out there who care (hello, Grant Sabatier!), but those of us who care really care.
Two years ago, I published an article exploring the history of financial independence in which I noted that the earliest reference I can find to the notion of financial independence comes from an 1872 book called Money and How to Make It by H. L. Reade. And it wasn’t until the 1950s that the concept of early retirement (at least in the sense we mean it today) gained traction. But despite my research, I still have questions, such as: What’s the source of the modern FIRE movement?
Who Coined the Term FIRE?
Recently at The Retire Early Home Page — a site so old that it existed (and still exists) at the dawn of the web — John P. Greaney answered the question: Who coined the term FIRE?
If you’ve never visited The Retire Early Home Page, you should. I’m certain that it’s the oldest FIRE site on the web. It’s quite possible it’s the oldest general personal-finance site too. Greaney has been publishing quarterly updates since 01 April 1996!
Greaney offers a bit of context and history, writing:
The “Retire Early Home Page” discussion board debuted on The Motley Fool website in May 1999, sparking a lively discussion about early retirement subjects. The board had around 900,000 posts until The Motley Fool shut it down in May 2022 (and turned it to “read-only” status). […]
The definition of “early retirement” was one of the first topics of discussion, and the general view was that some level of financial independence was required. Quitting your job with a small nest egg and risking a return to paid work was more of a “job change” than an early retirement.
Greaney claims that on August 23, 2000, a Motley Fool forum member with the handle “fzabaly” was the first to shorten “financially-independent, retired early” to FI/RE in the following board post:
One non-monetary decision that has helped me line up FI/RE is attaining a graduate degree (in ComputerScience) while working. Along with the better pay came a higher confidence re: employment that allowed me to become a ‘Moderately Aggressive Investor’ (70% stks/Mfunds) from a Conservative Investor (50% stks/Mfunds).
And, says Greaney, the first person to move this abbreviation from FI/RE to FIRE was a board member going by the handle “wanderer0692”. On 19 January 2001, wanderer0692 made a terrific (and long) post entitled “Things That Are Stronger than Death and Fear”. (The post is worth reading even today, 21 years later.)
“This is the essence of FI/RE,” writes wanderer0692. “Freedom from financial want. It is a tribute, in our case, to luck and a bull market, and to our adherence to what we refer to as the six fundamental principles of FI/RE.”
Those six fundamentals of FI/RE are:
- Have a motivating purpose.
- Take a high-paying job.
- Live below your means.
- Slash your taxes.
- Practice geo-arbitrage.
- Invest in low-cost index funds.
The fundamentals of the FIRE movement haven’t changed much since 2001, have they? These are still the basics that most of people preach and practice today.
“A Fire That Burns in Me”
Anyhow, as a sort of addendum to his excellent post, wanderer0692 makes an observation:
Has anyone else noticed how “FI/RE” looks like the word “fire”? I remember attending church (a long, long time ago) and, during the benediction, the preacher saying, “Take our minds and think through them. Take our eyes and see through them. Take our hearts and set them on fire.” I always liked that turn of phrase.
I’m not much for religion, but I do believe in the sanctity of the human spirit. FI/RE is a fire that burns in me. Maybe it consumes me, but I like to think I am that phoenix, rising from the ashes, to fulfill his special mission of realizing his true potential.
So, from now on, I’m gonna drop the slash. A “FIRE” it is. May it be ever thus.
And so it has been ever thus.
That’s all there is to it. I’m ready to accept Greaney’s interpretation of early FIRE history unless someone proves otherwise. After all, he’s been writing about this things online since 1996. He knows what he’s talking about.
Another intriguing takeaway from this FIRE genesis narrative. Most individuals (including me) now believe that the abbreviation FIRE stands for “Financial Independence/Retire Early.” That’s fairly clumsy, and we’re all aware of it. Actually, the FIRE abbreviation stood for “Financially Independent, Retired Early” at one time. That much more makes sense!
That being said, I know it’s a lost struggle to persuade people that we’re misrepresenting what FIRE stands for. Hell, I’ve spent two years trying to get people to stop saying “savings rate” when they mean “saving rate” and I seem to have made zero measurable difference. I suppose I’ll have to resign myself to failure on this one too.
What is the financial independence retire early concept?
So, What Is the Financial Independence, Retire Early (F.I.R.E.) Movement All About? In a nutshell, the F.I.R.E. movement encourages people to save and invest aggressively (50-75% of their income) in order to retire in their 30s or 40s.
Where did financial independence retire early come from?
Who began the FIRE movement? Vicki Robin and Joe Dominguez, who wrote the book Your Money or Your Life in 1992, laid the groundwork for the FIRE movement. Instead of working into your 60s to continue generating money, Robin and Dominguez encouraged spending your retirement years enjoying hobbies, family, and friends.
What is the movement for financial independence and retiring early?
FIRE stands for “Financially Independent to Retire Early.” A number of people have begun working toward a single goal as part of the FIRE movement. This ambition calls for individuals to save enough money to retire several decades (in their 30s, 40s, or perhaps 50s) before the typical retirement age.
What is the movement for financial independence and retiring early?
FIRE stands for “Financially Independent to Retire Early.” A number of people have begun working toward a single goal as part of the FIRE movement. This ambition calls for individuals to save enough money to retire several decades (in their 30s, 40s, or perhaps 50s) before the typical retirement age.
Further Reading
Want to read more about the history of personal finance and financial independence? Well then, you’re a nerd. That’s okay. I’m a nerd too. Here are a few pages that might interest you, weird-o:
And please, if you know of any other interesting books or articles about the history of financial independence (and/or personal finance), please let me know. I want to read them.