Key Insights You Need to Know

You’ve set your sights on early retirement, with a plan to leave the workforce well before you’re in your 60s. But even if you’ve saved diligently over the years, sacrificing small joys and big ones, you may not feel financially secure.

Although it may seem like a dream to quit your job in your 30s, settling into retirement well before your peers, the Financial Independence, Retire Early (FIRE) movement may not be right for you, especially if you’re doing it to escape unresolved issues about money.

We connected with experts to understand why achieving FIRE may not make you feel financially secure and how to know if you’re pursuing it for the right reasons.

Financial Insecurity Could Still Creep Up

Many people chase FIRE because they’re stressed at work or burned out. Some want more time for family or passion projects. But hitting your FI (Financial Independence) number isn’t a guarantee of peace of mind, says Kelly Reddy-Heffner, a Certified Financial Planner (CFP) and certified financial therapist.

This could be due to your “money scripts”, which are the ideas about money that you acquired in childhood. These ideas can follow you into adulthood, making you feel like you don’t have enough money even when you do.

“It’s good to explore our feelings about money, because sometimes, even when we accomplish goals, that feeling will still persist,” said Reddy-Heffner.

For example, if you believe $250,000 in savings will reduce your stress, you may still feel anxious once you reach that goal. Financial therapy can help uncover whether your savings target is rooted in fear, perfectionism, or a deeper desire for control.

So, how do you know you’re embarking on your FIRE journey with the right intentions?

Understanding Your Motivations

When Brandon Clouse, a CFP at Prism Planning Partners, is working with clients who want to retire early, he asks them why they’re interested in early retirement and what they plan to do with their time.

“I’ve had a number of people who retire, and it sounds awesome, and they stop doing everything altogether, and then three weeks later, they’re bored,” said Clouse.

Having a plan can reduce the amount of spare time you have to obsess over your investments or bank accounts. It can also help ensure you’re not just doing FIRE because you have a scarcity mindset about money.

“It [FIRE] is one of those things that you hear [about] on a podcast or read on Reddit, and it sounds super,” said Clouse. “But a lot of times, people gather up these ideas that are sexy but don’t understand why they want to pursue them or don’t take the time to think through whether it makes sense for them.”

Reddy-Heffner and Clouse suggest that people have a clear idea of what they’re going to do on a daily basis during early retirement. Instead of just focusing on the end goal, people should consider what comes afterwards—whether that’s volunteering, traveling, or doing hobbies like hiking and writing.

“I find that the people that are, generally speaking, the happiest and most fulfilled are the ones that have taken the time to figure out what they want to spend the majority of their waking hours doing with their life, regardless of the income,” said Clouse.

The Bottom Line

Achieving FIRE might not guarantee the feeling of financial peace you desire, especially if deep-seated anxiety about money is driving your decision. That’s why it’s important to think carefully about your reasoning for pursuing early retirement. True fulfillment comes not just from reaching a number but from being able to spend your time meaningfully in retirement.