Who coined the term FI/RE (financially-independent, retired early)?

It is at all times enjoyable to unearth some esoteric piece of personal-finance historical past. I do know there are just a few nerds on the market who care (whats up, Grant Sabatier!), however these of us who care actually care.

Two years in the past, I printed an article exploring the history of financial independence by which I famous that the earliest reference I can discover to the notion of economic independence comes from an 1872 guide referred to as Money and How to Make It by H. L. Reade. And it wasn’t till the Fifties that the concept of early retirement (a minimum of within the sense we imply it at present) gained traction. However regardless of my analysis, I nonetheless have questions, reminiscent of: What is the supply of the trendy FIRE motion?

Who Coined the Time period FIRE?

Not too long ago at The Retire Early Home Page — a web site so previous that it existed (and nonetheless exists) on the daybreak of the online — John P. Greaney answered the query: Who coined the term FIRE?

In the event you’ve by no means visited The Retire Early Home Page, it is best to. I am sure that it is the oldest FIRE web site on the net. It is fairly doable it is the oldest common personal-finance web site too. Greaney has been publishing quarterly updates since 01 April 1996!

Greaney presents a little bit of context and historical past, writing:

In Might 1999 the “Retire Early House Web page” dialogue board appeared on The Motley Idiot web site, and a vibrant dialog on early retirement subjects ensued. Earlier than The Motley Idiot shut the board down in Might 2022 (and transformed it to “read-only” standing) it had accrued nearly 900,000 posts. […]

One early matter of debate was the definition of “early retirement” — and the consensus was that some type of monetary independence was a prerequisite. Quitting your job with an inadequate nestegg, and risking an early return to paid employment, was extra of a “job change” than early retirement.

Based on Greaney, on 23 August 2000 a Motley Idiot discussion board member with the deal with “fzabaly” was the primary to shorten “financially-independent, retired early” to FI/RE in this board post:

One non-monetary resolution that has helped me line up FI/RE is attaining a graduate diploma (in ComputerScience) whereas working. Together with the higher pay got here a better confidence re: employment that allowed me to develop into a ‘Reasonably Aggressive Investor’ (70% stks/Mfunds) from a Conservative Investor (50% stks/Mfunds).

And, says Greaney, the primary individual to maneuver this abbreviation from FI/RE to FIRE was a board member going by the deal with “wanderer0692”. On 19 January 2001, wanderer0692 made a terrific (and lengthy) publish entitled “Things That Are Stronger than Death and Fear”. (The publish is value studying even at present, 21 years later.)

“That is the essence of FI/RE,” writes wanderer0692. “Freedom from monetary need. It’s a tribute, in our case, to luck and a bull market, and to our adherence to what we consult with because the six elementary ideas of FI/RE.”

These six fundamentals of FI/RE are:

• Have a motivating goal.
• Take a high-paying job.
• Dwell beneath your means.
• Slash your taxes.
• Observe geo-arbitrage.
• Spend money on low-cost index funds.

The basics of the FIRE motion have not modified a lot since 2001, have they? These are nonetheless the fundamentals that the majority of individuals preach and apply at present.

“A Fireplace That Burns in Me”

Anyhow, as a kind of addendum to his wonderful publish, wanderer0692 makes an commentary:

Has anybody else seen how “FI/RE” appears to be like just like the phrase “hearth”? I keep in mind attending church (an extended, very long time in the past) and, throughout the benediction, the preacher saying, “Take our minds and assume by way of them. Take our eyes and see by way of them. Take our hearts and set them on hearth.” I at all times appreciated that flip of phrase.

I am not a lot for faith, however I do consider within the sanctity of the human spirit. FI/RE is a hearth that burns in me. Perhaps it consumes me, however I wish to assume I’m that phoenix, rising from the ashes, to satisfy his particular mission of realizing his true potential.

So, to any extent further, I am gonna drop the slash. A “FIRE” it’s. Might or not it’s ever thus.

And so it has been ever thus.

So, there you have got it. Till any person gives proof in any other case, I am keen to just accept Greaney’s model of early FIRE historical past. The dude has been writing about these items on-line since 1996, in any case. He is aware of his stuff.

There’s one other fascinating perception from this FIRE origin story. As we speak, most individuals (together with me) consider that the FIRE acronym stands for “Monetary Independence/Retire Early”. That is fairly rattling clumsy, and everyone knows it. In fact, the FIRE acronym initially stood for “Monetaryly Independent, Retired Early”. That makes much more sense!

That mentioned, I do know it is a dropping battle to attempt to persuade folks that we’re mis-labelling what FIRE stands for. Hell, I’ve spent two years making an attempt to get folks to stop saying “savings rate” when they mean “saving rate” and I appear to have made zero measurable distinction. I suppose I will must resign myself to failure on this one too.

Additional Studying

Wish to learn extra concerning the historical past of private finance and monetary independence? Effectively then, you are a nerd. That is okay. I am a nerd too. Listed below are a number of pages that may curiosity you, weird-o:

And please, if you realize of every other fascinating books or articles concerning the historical past of economic independence (and/or private finance), please let me know. I need to learn them.