Who coined the time period 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 (good day, Grant Sabatier!), however these of us who care actually care.

Two years in the past, I revealed an article exploring the historical past of monetary independence by which I famous that the earliest reference I can discover to the notion of monetary independence comes from an 1872 e-book referred to as Cash and Tips on how to Make It by H. L. Reade. And it wasn’t till the Fifties that the idea of early retirement (at the least within the sense we imply it in the present day) gained traction. However regardless of my analysis, I nonetheless have questions, comparable to: What is the supply of the fashionable FIRE motion?

Who Coined the Time period FIRE?

Not too long ago at The Retire Early House Web page — a website so outdated that it existed (and nonetheless exists) on the daybreak of the net — John P. Greaney answered the query: Who coined the time period FIRE?

In case you’ve by no means visited The Retire Early House Web page, you must. I am sure that it is the oldest FIRE website on the internet. It is fairly potential it is the oldest basic personal-finance website too. Greaney has been publishing quarterly updates since 01 April 1996!

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

In Could 1999 the “Retire Early House Web page” dialogue board appeared on The Motley Idiot web site, and a vibrant dialog on early retirement matters ensued. Earlier than The Motley Idiot shut the board down in Could 2022 (and transformed it to “read-only” standing) it had accrued virtually 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 on this board submit:

One non-monetary determination 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 grow to be a ‘Reasonably Aggressive Investor’ (70% stks/Mfunds) from a Conservative Investor (50% stks/Mfunds).

And, says Greaney, the primary particular person 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) submit entitled “Issues That Are Stronger than Demise and Worry”. (The submit is price studying even in the present day, 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 confer with because the six basic rules of FI/RE.”

These six fundamentals of FI/RE are:

• Have a motivating goal.
• Take a high-paying job.
• Reside beneath your means.
• Slash your taxes.
• Apply 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 follow in the present day.

“A Fireplace That Burns in Me”

Anyhow, as a kind of addendum to his wonderful submit, wanderer0692 makes an remark:

Has anybody else observed how “FI/RE” appears to be like just like the phrase “hearth”? I bear in mind attending church (a protracted, very long time in the past) and, throughout the benediction, the preacher saying, “Take our minds and suppose by means of them. Take our eyes and see by means of them. Take our hearts and set them on hearth.” I at all times preferred 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 fireplace that burns in me. Perhaps it consumes me, however I prefer to suppose I’m that phoenix, rising from the ashes, to satisfy his particular mission of realizing his true potential.

So, any more, I am gonna drop the slash. A “FIRE” it’s. Could it’s ever thus.

And so it has been ever thus.

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

There’s one other attention-grabbing 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. Really, the FIRE acronym initially stood for “Financially Impartial, Retired Early”. That makes much more sense!

That stated, I do know it is a shedding 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 cease saying “financial savings fee” once they imply “saving fee” and I appear to have made zero measurable distinction. I suppose I am going to must resign myself to failure on this one too.

Additional Studying

Need to learn extra in regards to the historical past of non-public finance and monetary independence? Properly then, you are a nerd. That is okay. I am a nerd too. Listed below are a number of pages which may curiosity you, weird-o:

And please, if of another attention-grabbing books or articles in regards to the historical past of monetary independence (and/or private finance), please let me know. I need to learn them.