The Financial Independence Retire Early (FIRE) movement is geared towards anyone, no matter where they fall along the income spectrum. The tips, tricks and hacks central to the movement can have remarkable impacts for six figure bread winners and minimum wage earners alike.
However, high earners who demonstrate FIRE principles can have wide-spread influence. It’s important for these individuals to be shining examples… to be Beacons of the FIRE movement.
So let’s explore the potential impacts that can be made by high earners seeking FIRE.
High Income FIRE: A Beacon For Others
Like it or not, high earners are visible. Whether they are running a business, speaking to groups, or competing in front of fans. Like a signal beacon, their actions are seen by a wide audience. Their actions can influence others. The benefits of visible high income FIRE seekers can be profound.
Re-Envisioning the “The Joneses”
Imagine seeing your work supervisors, or other folks you would consider successful, driving older used cars to and from modest housing and eating lunch at work. If the upper earners can be seen as examples of frugal living, then, over time, the image of what success looks like can be molded. The new “Joneses” would look more like Mr. Money Mustache and value flexibility, financial freedom, adventure and personal growth over material goods.
Additionally, transitioning status symbols from the materialistic (big house, nice car, etc.) to those that are based on experiences (slow travel, quality family time, pursuit of passion projects) can help curb the financial strain of others. These “Anti-Joneses” put less (or entirely different) downward pressure for others to keep up with them.
Lowering Barriers to Building Relationships and Opportunities
Humans are social animals. For the vast majority of us, we just want to get along and have friends. But it’s hard to build a relationship when you have little in common. As such, it can be hard for low income earners to embrace high income earners, and vice versa.
By living below our means, high earners would share more in common with others throughout the income spectrum. Eating the same food, driving the same cars, etc. These shared experiences would allow us to relate with each other in ways we couldn’t before.
To form relationships solely based on the person, and not the material circumstances surrounding that person, can lead to longer lasting friendships. Let’s face it, there was always that kid in school with fancier toys, a lake house, or sweet ride. A little part of you wanted to be that kid’s friend so you could also enjoy those same things…. amirite? If he/she didn’t have the cool toys would you still want to be buds?
Additionally, the increased dialogue may lead to opportunities that would not have been available before their paths crossed.
Eye-Catching Success Stories
High earners who have recently “caught FIRE” often have several areas where they can cut back on spending quickly due to years or decades of unchecked lifestyle inflation. This low hanging fruit, coupled with a substantial income can produce stunning results. Headlines like: “How I paid off over $56,000 of debt in ONE year!” or “How I went from -$XX ,XXX to $XXX,XXX net worth in five years!”
These stories have shock value that can be the bait that draws in other would-be FIRE chasers. When we see these stories pop up, our curiosity takes over and we naturally want to know, “How’d they do that?” and “Can I do that too?”
The environmental benefits of reduced consumption
Photo by Gustavo Quepón on Unsplash
High earners are typically the largest consumers of goods. Whether it’s the personal fleet of cars, the multiple vacation homes, or the tailored suits, the carbon footprint of high earners is huge. OK, I admit that was an extreme example, but think about how the material possessions of the big earners you know compares with other less fortunate folks… the gap can be pretty staggering.
All that stuff has to come from somewhere and from something. And when it’s used up or discarded it has to go somewhere. It is challenging to source the raw materials to meet our large appetite for consumption and just as hard to find room to throw it all away. In fact, it is not sustainable at all. According to Earthovershootday.org:
earthovershootday.org
Earth Overshoot Day marks the date when we (all of humanity) have used more from nature than our planet can renew in the entire year. In 2018, it fell on August 1.
If the whole world lived like we do in the U.S., then Earth Overshoot Day would fall on March 15th!! Yikes! I am not a die-hard environmentalist by any means, but I do want my daughters and later their kids to enjoy this world.
If high earners dialed back their consumption of material goods by embracing the concepts of the FIRE movement, we could really move the needle to push this day backwards.
How to Set an Example Tactfully
While it is important to be seen as Bacon for the FIRE movement, it is just as important to not be an ass about it. An aside: I need to be better about this myself as I tend to blab about our goal of Financial Independence (FI) a bit too often.
Beating people over the head with your ideas will drive them away. It can be viewed as pretentious or come off as bragging. It’s best to lead by example…
Speak with your actions first
Let others see you packing a lunch instead of eating out or bringing your own coffee, rather than grabbing a high dollar latte. Let others see you continue to drive your car with over 100,000 miles.
Share your FI wins indirectly
The key is to capture interest with something that appeals to everyone on a smaller, relatable scale.
Tell others about how awesome your family vacation was and how you used travel hacking to pull the vacation off for pennies on the dollar.
Discuss how you found a great (fill in the blank) on Craigslist for half the retail price.
Everyone’s talking about their favorite show? Mention how you watch it for a fraction of the typical cable bill by cutting the cord and using streaming services.
I mean, who doesn’t want to travel at a staggering discount, fill a need for 50% off, or cut your TV bill by 2/3rds? I think we can all agree on that!
So go ahead and let your beacon shine!
*Title Photo by matthaeus on Unsplash
There is a saying that when the student is ready, the teacher will come. So I agree that people who have already reached FIRE can be a beacon, but I also think people really interested and ready for FIRE will find the beacons even if they are not so out there. I know that when I got serious about FIRE I started to see more and more beacons and other helpful aids — the right articles with good advice, inspiring examples and stories, etc.
Thanks Caroline! Well said!