This post is intended as an introduction to the FIRE (Financial Independence Retire Early) movement for teachers. May it give you hope, like it did for me.
Have you ever experienced the phenomenon whereby you learn about something at exactly the right moment in time?
Maybe it was right there all along and you just needed to be ready for it? Or maybe it was pure serendipity?
Whatever the case, the FIRE (Financial Independence Retire Early) movement came along at a perfect time for me. I had seen information on it before, so this is definitely a case where I had to be ready for it. Nevertheless, I latched on hard and haven’t looked back.
Before I discuss its profound impact on me (and potentially you) I think it’s worthwhile to give you a little background on the FIRE movement.
A Brief History of FIRE
It all started with a bolt of lightning… No, different fire… And before I go further I just want to say that this is only intended for background understanding. This movement has steamrolled to massive heights and there is no way I could capture it all.
Some think it started with a book. Others think it all started with a single blogpost. In January 2012, a guy by the pseudonym of “Mr. Money Mustache” (who also wrote the foreword to the updated version of the aforementioned book, Your Money or Your Life) wrote a blogpost entitled “The Shockingly Simple Math Behind Early Retirement”. It’s still a good read and you can find it here.
From there, like-minded people running parallel financial experiments in their own lives were drawn in. Others, who hadn’t even thought such thoughts, were drawn in as well.
Eventually, many of them started working out their own paths and found new ways to get a financial edge.
They all began reaching out to one another and sharing.
Ideas were swirling and colliding. The pull grew ever stronger. They were all being sucked into a singular gravitational field.
Finally, a star was born.
Nowadays, you simply need to type “FIRE movement” into google and you will get endless amounts of resources and information on the topic. It is that prolific.
I have gone through much of this information, and like I told you in my introductory post, I have curated it for you through my teacher filter. Now, you don’t have to sift through it all, looking for the little nuggets of gold. I will give it all to you here on this site!
My Relationship with FIRE
You know that kid in the class that only reads one book series? They just can’t get enough of it and it’s all they talk about. It can even interfere with their relationships.
That was me with FIRE (temporarily).
Whatever I did, I had an earbud in my ear listening to this podcast or that. I was just mining for the little nuggets of information that would bring me one step closer, no matter how small.
My colleagues at work for those final months, couldn’t talk to me about anything else. I was obsessed.
Now I have charted my course and I have my plan. My relationship with FI is much healthier and I plan to share it all with you. I just need to time to get it all out there!
Also, to be clear, I’ve always had an unofficial background in saving and investing. This didn’t just come out of nowhere. My parents openly discussed investments with me and hammered home the importance of a retirement plan.
Before I switched to teaching I was doing all the right things. Then, for some reason, I just figured the pension would take care of me and I stopped.
If you think about it, when you first get hired, it’s all a blur. You have to meet these coworkers and take these courses. You have to set up your email, prepare your class and on and on it goes.
It makes sense that something like opting into a 403b would fall by the wayside. Or why you wouldn’t have the bandwidth to figure out to look into it and figure out what to invest in.
This is probably why I went astray.
Either way, I feel like I’ve been able to use my background and combine it with my new outlook to come up with a good plan.
I fully encourage you to go down a rabbit hole as well! I’ll share some of my resources at the end of this post. Just don’t forget about me as you are way down in the weeds!
FIRE for Teachers
Admittedly, I struggle with this concept.
Teachers are a truly amazing bunch. In my opinion, they are one of the last lines of defense between a healthy society and an ignorant one. You all are such a positive force on society. I truly mean that.
How then, can I sit here and tell teachers they should retire early?
Well first off, I’m not telling you should do anything. I’m just showing you your options.
Secondly, I know that teacher burnout rates are on the rise. Some sources indicate that 50% of teachers think they will quit within the next 2 years. While that number probably won’t hold true, it is still pretty drastic don’t you think?
I burnt out completely and took a leave of absence. As I write this, I’m dreading going back. I felt completely overextended and that I could never get my feet under me.
I knew I was doing good work but at too great a cost. It was one of the most difficult decisions I’ve ever made.
But it’s also one of the best decisions I’ve ever made.
And by the way, I’m not proud to be writing that. I’m just trying to be honest and share what has worked for me. Perhaps what gave me hope will do the same for you? The prospect of 5 more years instead of 18 more, gives me hope. The concept of Financial Independence (FI) is the vehicle leading me to that hope.
Finally, on a much more delusional note, I want to play a small part in changing the teaching profession for the better. Maybe if enough of us either quit or demand better working conditions, the education powers that be will start to take notice?
Like I said, probably delusional. I could launch into a rant right now that would go for 50 pages, but I’ll save it all and sprinkle it in throughout…
Whether this resonates with you or not, can we all agree that it’s never idea to have a backup plan?
Having a Backup Plan
Part of me hopes that I will want to continue teaching by the time I reach FI. If not, I will retire and use my energies to give back in other ways. That is how I justify this whole endeavor to myself.
Ultimately what I think is this: It never hurts to have a good backup plan. I think FIRE is a good plan to fall back on in case you find yourself burnt out like I did.
Being Financially Independent gives you power over your personal situation. It gives you the freedom to decide when you would like to call it a career, rather than relying on an algorithm.
That sounds like a good backup plan to me.
But maybe you have other plans as your backup? If you do, I want to hear about them!
To me, the statistics working against teachers are daunting. This is especially true for teachers just starting out today. Teaching for 30+ years and getting a full pension feels more and more fantastic(as in fantasy) with each passing year. It’s more like hitting a half court shot to win the game then the veritable layup it may have once been.
By the way, that is no knock on veteran or retired teachers! I am your biggest fan and I have relied on you heavily throughout my career. You are an asset in every sense of the word. But when I talk to you, so many of you tell me that the profession has changed for the worse. For so many of us, it has become unsustainably taxing. This is probably why we are dropping like flies. It’s a big reason why I did.
So, If you don’t already, make sure you have a backup plan. If things don’t go your way in this career, you can be ready for your next move instead of feeling stuck.
I think mine is a pretty good backup plan to have. Here’s the general outline if you haven’t read it already.
You’ll at least have to agree that it’s at least better than my ultimate backup of moving back into my parents basement and playing video games (original Nintendo of course) until my mother calls me for dinner for the third time (I always waited for the third call).
My FIRE Resources
When I went deep into the FIRE rabbit hole, I relied heavily on 3 resources. As I said before, there are thousands of different resources out there. If you have one that you love, then I want to hear about it in the comments.
Here are the 3 FIRE resources I used.
Mad Fientist Podcast – This guy is one of the original FI figures and was my introduction to FI. In the beginning, he is on a quest to reach his FI number. Then (spoiler alert), he retires and tries to figure out what to do with his life once he doesn’t have to earn money.
For me, the first part when he was saving and trying to reach FI, were most valuable to me. It helps to hear how other people go about it. He gives lots of practical advice. He’s also incredibly humble and forthright. He is not afraid to share his missteps along the way. There’s something endearing about that.
Here’s his website where you can also find his podcast.
Frugalwoods – My wife turned me onto the Frugalwoods blog. It’s the story of a family realizing their dream of reaching FI and buying a dream home in Vermont. Mrs. Frugalwoods (the host) is an excellent writer. She also does a number of case studies and works out a strategy, in great detail, for people to get their lives on financial track. There is a lot to be gleaned from reading each one.
Mrs. Frugalwoods is very down to earth and espouses many of the lifestyle changes that I think are positive byproduct of financial independence (buying used, living simple, etc.) She’s also a great interview on many podcasts, including the one I’m about to mention.
Here’s her website. I recommend you click around and see what strikes your fancy!
ChooseFI – I have consumed so much of their content it’s almost embarrassing. They have over 500 podcasts and I’ve listened to 75% of them. These guys caught lightning in a bottle and it shows.
The show consists of two hosts, Brad and Jonathan. One, Brad, is down to earth and has a knack for asking the perfect questions at the perfect time. Jonathan, on the other hand, is a ball of energy with an infectious enthusiasm for FI. Their chemistry is undeniable.
In addition, they have so many hosts with so much insight, that I couldn’t not (double negative) listen to almost all of the episodes.
Here’s their website where you can also access their podcast.
I recommend just starting at episode 1 and not worrying about listening to all of them. That’s what I’m here for!
Summary
The FIRE movement started with a single spark and has spread like wildfire (pun intended but I’m not proud of it).
I believe in what the movement stands for and I believe in the strategies they promote.
I also believe that it can be a guiding light for how we choose to spend our hard-earned money. Sometimes you just need a strategy to latch onto to direct your funds in purposeful ways.
If nothing else, I think it serves as a wonderful backup plan to have. Life throws us many twists and turns. It’s never a bad idea to have a backup plan in case you go off the beaten path for a little bit.
Personally, throughout all the twists and turns of the past year, I went off the beaten path and found a new one. This new path has lead me from one four-letter word (FIRE) to another (HOPE).
I hope, if you are looking for a new path, it can do the same for you.
Thank you for reading about FIRE for teachers. As always, please feel free to share your comments below or reach out to contact me. Whether you have a backup plan you want to share, or a FIRE resource you enjoy, I want to hear about it. All questions are very welcome as well!
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