I recently sat at a bar overlooking the Kentucky River, enjoying lunch on what was likely to be one of the last warm days of the year. Sitting across from me was my friend, Joe, squinting to avoid the bright light of the direct sun. We were chatting about everything and nothing, as we do. 

Eventually, we wandered into familiar conversational territory and started chatting about the pleasures of life. We reflected on Joe's bachelor party, a certified shit-show on a houseboat out on the lake. We talked about our trip to Guatemala several years ago and nearly being kidnapped by fugitives seeking refuge in the hills of Lake Atitlan. It was so worth it. 

And we talked about what to do next. Unfortunately, our planned trip to Belize was a victim of Covid-fueled travel bans, but we're never lacking ideas.

The conversation zigged and zagged like good ones often do. Still, we kept returning to the FIRE (Financial Independence, Retire Early) movement that has captured the attention of our generation over the last decade or so. 

As a financial advisor, the movement is attractive. It's built on the foundation of delayed gratification, the most critical attribute to overall happiness, in my opinion. 

Extreme savings and investing define the movement. And while attaining financial independence is a worthy goal, one shouldn't pursue it so ferociously that they sacrifice the present.

What is Financial Independence?

What is wealth? What is freedom? These questions have as many answers as there are people. They're personal. That's what makes financial planning so personal; we all have different backgrounds, circumstances, and aspirations. If you don't know what financial independence means to you, it's worthwhile to think about it. It's a great way to reflect on your values, think about what's meaningful, and ensure your actions are aligned. 

Generally speaking, financial independence means freedom from working in your current capacity to meet your financial needs. For some, this looks like traditional retirement. No more alarms, no more work. For others, it might be starting that business that's been on hold, working part-time, doing some freelance work, or creating a passion project. 

The important question is: what does financial independence mean to you?

At What Cost?

Every decision is a tradeoff. Eating lunch with Joe that day meant I couldn't eat lunch with anybody else. Spending five bucks on the coffee I'm drinking means I can't spend that money on anything else. And when I spend time doing something I don't want to do, I can't trade that time for something fulfilling. Herein lies the potential pitfall of the FIRE movement. 

A few weeks after our lunch, Joe sent me the written confession of a FIRE participant, a cautionary tale of someone so focused on the future that the present is hardly worth living. This anonymous author said that his once enjoyable life has devolved into one full of anxiety, stress, and fear. He wrote, "I've turned into such a loser. I'm almost 40. My entire life revolves around my business; getting new clients; keeping clients happy; making more money." Sad.

I don't mean to indict FIRE. It's more about extremes and obsession. Living like there's no tomorrow comes with its own repercussions. But sacrificing life today for an uncertain future is hardly healthy either. 

Avoiding Burnout

There are plenty of FIRE subscribers who've transformed their financial futures while maintaining a healthy balance between today and tomorrow. It can be done. 

Celebrate the victories along the way 

While working towards a long-term goal, it's easy to forget to enjoy progress along the way, opting to defer happiness until the goal line is reached. Celebrate those small victories. If you're a long way from reaching your goal, look back to see where you started, you might be surprised at how much progress you've made. Small victories add up; they compound. 

Adjust course as needed 

Life is full of surprises. Things will change throughout your journey, and so will you. Revisit your goals, and don't be afraid to make a change. If you find your career is stressful and unfulfilling, don't let fear keep you from making a positive change.

 Too many intelligent, desirable people are stuck working on trivial, unchallenging tasks. Don't let fear of diverting from the plan keep you from making a decision that will lead to greater productivity and happiness. That change could be the best decision you make, both personally and financially. 

Focus on the FI (Financial Independence), not the RE (Retire Early)

We've all had those days. You know what I'm talking about. The boss is taking her stress out on you. Your co-workers are leaving you to tackle the bulk of the workload. Deadlines are looming, and worst of all, the coffee-maker is broken, and caffeine can't save you. That's enough for anyone to quit on the spot. Days like that lead to early retirement dreams —  far from petty bosses, lazy co-workers, and cheap coffee-makers.

Brian Feroldi focuses more on the Financial Independence portion, saying, "if you're willing to go through the effort of achieving financial independence, that means that you get JOY out of creating in your real life." I agree. If your goal is not to work, each day you go to work feels like a loss. But if you focus on the FI part, every dollar closer will feel like a win. It's much easier to continue towards a goal when you can enjoy the progress instead of feeling like you're getting your teeth kicked in every time the alarm rings. 

Practice Gratitude

By practicing gratitude, we can focus on long-term goals while savoring the present. Being grateful is a great way to stay to fend off stress and anxiety about the future. 

Enjoy Life!

This is it. This is the whole purpose of everything else I've written. As a financial advisor, I spend a lot of time talking and thinking about my and my clients' future. But we're alive now, and we don't know for how long. The people in our lives are here today, but they may not be tomorrow. You are healthy today, but there's no guarantee you will be tomorrow. Your child is young, but they won't be forever. If you aren't enjoying life today, you probably won't later, even if you far exceed your financial goals. That's the trap. Please don't fall for it. Save and plan for the future; it's important. But don't defer life.

Whether you're aiming for FIRE or something else, find a way to live today. Dying with the most money but least fulfilling life is no victory. 

Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from James Vermillion, and all rights are reserved.