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I wasn’t always excited about financial independence. I had debt, very little saved outside my 401(k), and a strong desire to enjoy the money I was finally earning. This is how my husband and I started working toward FIRE, plus some resources to explore if you’re starting out.
What is FIRE?
FIRE stands for Financial Independence, Retire Early. The idea is to build enough savings and investments to support your life without depending on a paycheck. Financial independence gives you more choice about whether, when and how you work. Retiring early is one way to use that freedom.
For a broader introduction, Schwab’s guide to the FIRE movement explains the basic idea, different approaches and planning challenges.
The conversation that started it
In 2011, we got engaged and were renting a townhouse in the Pacific Northwest. One night, Mr. Scribbles and I had the following conversation:
Mr. S: “What’s the least amount of money you can live on?”
Lauren: “Excuse me, what?!” [Heart races. Panic ensues. Where is this going?]
Admittedly, I was defensive. I grew up with a sense of lack: promises made and broken. So when I started making my own money, I enjoyed it! I gave very little thought to retirement. I contributed the default 4% to my company’s 401(k) plan, had no other savings, had a car loan and student loans, and carried a credit card balance most months.
Mr. Scribbles knew early in his working life that he didn’t want to work forever. He discovered the power of investing, took advantage of his company’s 401(k) match, paid off car loans, and didn’t use his credit card much.
It took me time to get on board with saving and investing for the future while enjoying my money in the present. It took lots of conversations with Mr. Scribbles, listening to podcasts like ChooseFI, and building spreadsheets to track and project our net worth. As our projections became reality, I became convinced that we could reach our FIRE number.
The conversations mattered as much as the spreadsheets. If you and your partner approach money differently, I’ve written more about working through our money stories and fears, and how we organized accounts and shared expenses.
Doing this work fundamentally changed our lives. When we got raises or a windfall, we saved and invested. We set goals for our money: paying off my student loans and our cars, clearing credit card balances, buying a rental property, increasing our earnings through raises or new jobs, and spending on what mattered most to us. We also invested in crypto along the way; that’s part of our history, not a recommendation.
Our approach: spend less, earn more, find a balance
When you get into FIRE, you’ll notice that people approach the same goal differently. I tend to think of those approaches in three broad groups:
- Cost-cutters. These folks focus on reducing their living costs so they can put more of their income toward saving and investing. How quickly that leads to financial independence depends on their starting point, income, expenses and investment results.
- Income-increasers. These folks focus on earning more through career growth, new skills, businesses, side work or other income sources. The extra income only helps the savings goal if it doesn’t all disappear into higher spending.
- People somewhere in the middle. They cut spending they don’t value and look for ways to increase their earnings. This was us.
We were squarely in that middle group. We stopped spending on things we didn’t value, but we didn’t drastically change our spending habits. Instead, we focused on increasing our earnings and building an investment strategy we could stick with in good markets and bad.
Earning more didn’t mean every business idea worked out. My side-hustle starts and stops are a useful counterpoint to the “just start a business” advice you see online.
What does a FIRE number mean?
Your FIRE number is an estimate of the investments you would need to help cover your spending without earned income. A common starting point is 25 times expected annual expenses, which corresponds to a 4% initial withdrawal. For illustration, $40,000 a year × 25 = $1 million.
Annual spending × 25. Arithmetic only—not a forecast, a recommended withdrawal rate or a guarantee that savings will last. A real plan needs taxes, healthcare, inflation, investment risk and the length of retirement.
That’s a rough benchmark, not a promise that you can quit work or that the money will last. Taxes, healthcare, inflation, market returns and a retirement that could last many decades all affect the calculation. Schwab explains the assumptions and limitations in more detail.
Reaching a net-worth milestone and having a workable retirement plan are different things. The amount you need to spend, the investments you can access, and how long they need to support you deserve their own attention.
What our FIRE journey actually felt like
- We got excited about calculating our FIRE number and setting goals.
- We talked to everyone about FIRE. Newsflash: not everyone cared.
- We became spreadsheet junkies, constantly tweaking our projections and building a useful professional skill at the same time.
- We got excited about changes to 401(k) contribution limits. Yes, really. For current US limits, check the IRS contribution-limit page rather than an old blog post.
- We tried not to panic-sell when the market dipped.
- We felt hopeless, as though we’d never reach our first $100,000 in net worth. Then we were surprised by how quickly we reached the two-comma club: $1 million.
- We felt content, because what we value most doesn’t cost a dime.
What financial independence means to us
The goal was to have enough to sustain the life we wanted, with more control over our time and energy. Getting there meant working on our money habits and our relationship with money, as well as the numbers.
And yes, you’re allowed to feel like a badass mother trucker when you make progress. Your friends and family may still not care about your latest spreadsheet, but we love them anyway.
FIRE books, tools and communities to explore
If this story has you curious, these resources give you several ways to dig deeper. Some focus on the numbers; others focus on how you want to live.
Free guides and tools
- ChooseFI’s financial-independence guide — An overview of the concepts, with links to explore earning, spending, investing and planning. The ChooseFI podcast offers longer conversations and personal stories.
- JL Collins’s Stock Series — A substantial collection of articles on long-term investing, index funds and how to think about market swings.
- Investor.gov’s asset-allocation and diversification guide — A plain-language explanation of investment mix, risk and spreading investments. Diversification does not eliminate the risk of losses.
Books for a deeper read
These Amazon affiliate links were originally set to audiobook editions. Check the format and current availability before buying, or try your library.
- The Simple Path to Wealth by JL Collins — A straightforward introduction to his approach to long-term investing and financial independence.
- Choose FI: Your Blueprint to Financial Independence by Chris Mamula, Brad Barrett and Jonathan Mendonsa — A broader look at building a financial-independence plan.
- Your Money or Your Life by Vicki Robin and Joe Dominguez, with a foreword by Mr. Money Mustache — Explores the relationship between money, time and the life you want.
Conversations with other people pursuing FIRE
- r/personalfinance — Discussions about budgeting, debt, saving and other everyday money questions.
- r/financialindependence — Personal experiences, questions and longer discussions about pursuing financial independence.
- r/Fire — Another community for discussing financial independence and early retirement.
Community posts can give you questions to research and experiences to compare. They aren’t a substitute for checking the facts or getting advice about your own circumstances.
This is our personal experience and general educational information, not individualized investment, tax or financial advice. Resources reviewed in November 2026.
For us, more freedom included Portugal
Financial independence helped make the move possible. Read why we sold our US properties and what I wish I’d known before moving. If Portugal is part of your plan, get my free moving checklist or book a €95, 60-minute call about the practical side of life here.
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