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Is the pursuit of FIRE Selfish?

It is lonely at the top – Photo by Conor Sheridan on Unsplash

Firstly, I would have to admit my mistake of telling close friends and family about my pursuit of FIRE. I would highly recommend you to think twice or more before sharing the idea that you are pursuing FIRE. Worse still is disclosing your net worth (thankfully, I did not).

Some of the stronger ‘feedback’ that I have got for propounding FIRE include being Selfish, Escapist, Elitist  etc. 

This made me take a hard look at the concept of FIRE to do some critical evaluation to see if these allegations were indeed true. 

After much thinking I concluded that the pursuit of FIRE is anything but Selfish. Here are three reasons why?.

Deferred Consumption Cycle

The pursuit of FIRE involves increased savings through deferred consumption. It is a fancy way of saying that you choose not to upgrade your car or your phone immediately but wait for just a ‘little’ bit longer.

The important point to note here is that this is not substitution. In substitution people save money by avoiding to buy something to buy something else. A good example is a drug addict, who may put off that important car repair to buy drugs.

The saved money in the pursuit of FIRE goes towards INVESTMENT!!!

By investing in the broader economy through a diversified portfolio of assets. The FIRE community makes a lot of personal sacrifice in giving up indulgent self-gratification. The efficiency of capital markets means that the invested funds are allocated to the most efficient of firms leading to better returns to the investors and also to the society as a whole. This is a far cry from being selfish.

Better Work Ethic

Many people have this mistaken view that once someone FIREs they just sit on their hind-side all day drinking margaritas all day in a tropical paradise. The reality is far from it.

Take a closer look at the FIRE community. Post-FIRE, a lot of them are actively engaged in the community and are volunteering their time and work. This is in spite of not having an economical reason to do so.

If anything, the work that they do has more vigour and enthusiasm. I would venture out to say as much as even if one is doing the same exact work as before FIRE but not having a boss vastly increases productivity, creativity and quality.

I believe the main cause is the Work Ethic. 

The pursuit of FIRE instills in people a great work ethic that involves a lot of self-discipline, living frugally and the ability to set and achieve goals.

Once an aspirant succeeds in achieving FIRE, it is not like that they change all of a sudden into a slouch. They carry on their learnings and are more willing to share and inspire others.

More Self Reliant

This reason may be a bit harsh. This is applicable from a FI point of view rather than RE.

What does the standard non-FI person’s life look like? In most cases, it involves putting away the bare minimum amount of money towards retirement and working until retirement age in a job that they don’t like buying stuff that they don’t need to impress others. 

At the end they are in for a shock as the retirement funds are not enough to sustain the lifestyle leading to severe changes and adjustments to the lifestyle leading to stress in personal life. In addition, they come to depend on the government for handouts and welfare.

Who is paying the bill for this welfare? It comes from the tax-payers mostly. Sometimes, there is a shortfall and the government issues bonds to cover the shortfall. This means that the government is borrowing from the future generation.

So essentially, the non-FI people are more likely to borrow from the future generation. This is beyond selfish, pardon my harsh words but one could even apply the term ‘parasite’ here.

In stark contrast, the FIRE aspirants take complete responsibility for their own retirement. They are less likely to reach out for a government handout. By staying invested in the market they contribute to innovation and economic growth of the society as a whole. 

The frugal and prudent nature of their lifestyle means that they not only use the resources efficiently but also allocate their wealth effectively.

Ignore and stay the course

Few people argue that post FIRE one should employ the skills in a professional setting that maximizes income and donate all proceeds to charity. Be very weary of these lines of arguments. It is nothing but a call to communism!!! We all know how and why communism fails. It looks great on paper, nice to win debates but nothing good has ever been achieved in this world through it. 

The bedrock of capitalism is  the fact that the world will be a better place if one strives to take care of oneself. There is nothing selfish about this. The pursuit of one’s happiness is enshrined in most democratic constitutions in one way or the other. 

I recommend not making the mistake of sharing your FIRE pursuit with others. Like me, if you have made the mistake then be ready to be called Selfish, Escapist, Elitist etc. Understand that it is only a reflection of their envy and a reluctance to admit their own lack of financial self-discipline to pursue and achieve FIRE.

Ignore the critics and stay the course! You are on the right path!