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Personal Finance Saving

Why FIRE is Rational

If your home was by the ocean and the beach was slowly eroding away each year, what would you do? Would you ignore it and fill your home with more stuff? Would you expect the government or your community to do something about it? Or would you start moving your valuables to a home further inland and figure out a way to fortify the house by the water?

I’d take the last option and do everything in my power to avoid disaster, wouldn’t you?

Of course, maybe the beach won’t erode all the way to the house, or maybe a big storm never comes, or maybe the government builds a sea wall and moves the house further inland. But wouldn’t you rather be in a position of security, where that house is now a second home and not all is lost if you lose it?

While most of us aren’t in this situation, how many of us are one paycheck, one car repair, or one hospitalization away from financial ruin? With each passing day, unemployment benefits are being cut, cars are becoming more expensive, and medical costs are rising.

And there’s no end in sight.

I’m not saying that building financial security is easy or that the odds aren’t stacked against us. It’s difficult and they are. But while we hope for the best and fight for change, isn’t it still worthwhile to take action on our own situations?

This is why I save. This is why I pursue FIRE.

I know that one day I will be out of a job. I know that one day my car will break down. I know that one day I will be hospitalized.

But I don’t want that to be game over.