Is the Financial Independence, Retire Early (FIRE) Movement Still Relevant?

The Financial Independence, Retire Early (FIRE) movement in Singapore continues to have a dedicated following, but its popularity might vary among different groups.  For a quick recap, there were 5 popular FIRE strategies when I first came to know about the FIRE movement, namely traditional FIRE, Lean FIRE, Barista FIRE, Coast FIRE and Fat FIRE.  If you do not know about these, feel free to see my previous write-up on the different FIRE strategies.  Some people remain enthusiastic about the principles of saving aggressively and investing wisely to achieve financial independence early in life.  However, the movement has also faced increasing scrutiny and adjustment as people realize the challenges and trade-offs involved in pursuing extreme frugality and early retirement, especially in high-cost cities like Singapore.  This is also evident when books like "Dying with Zero" gain popularity, further undermining the need for FIRE.

As such, besides the revamping of FIRE from "Financial Independence, Retire Early" to "Financial Independence, Recreational Employment", nowadays there is another new upcoming terminology called Financial Independence, Retire Meaningfully (FIRM).  Personally, I think this is just another hype word, but deep down, FIRM is just Barista FIRE with a twist, incorporate meaning into what one can do upon financial independence, instead of just doing any random part-time work.  

Personally, my observation in the local context among the younger adults tends to prefer either Coast FIRE or Barista FIRE nowadays (just as I do) because it is apparently more achievable.  Barista FIRE involves achieving a level of savings and investments that allows one to quit a high-stress or full-time job and transition to a part-time job or less demanding work, hence its popularity.  The part-time income covers living expenses, while the savings and investments continue to grow for full retirement later.  Here may be a few reasons why Barista FIRE is appealing in Singapore:

1)     Reduced Stress

Many Singaporeans face high levels of work-related stress.  Barista FIRE allows individuals to step away from demanding careers and pursue lower-stress jobs that provide a better work-life balance.

2)     Flexible Employment 

Part-time jobs or freelance work in Singapore can offer flexibility, allowing people to enjoy more free time while still earning enough to cover their expenses.

3)     Maintaining Engagement

Working part-time keeps individuals engaged and active, which can be beneficial for mental health and social connections.

4)     Supplementing Income

Part-time work provides a source of income that can supplement savings and investments, reducing the need to draw down retirement funds prematurely.

5)     Gradual Transition

Barista FIRE allows for a gradual transition to full retirement, giving individuals time to adjust and plan for the future without the abrupt shift that comes with traditional early retirement.  This transition, to me, is important as it helps individuals to gradually find the balance between work and play when the workload decrease at initial stages.  At later stages, it allows us to find the balance between play and daily activities which will continue to keep as active and engaged even in times of full retirement, instead of just being a couch potato waiting for time to past.

Barista FIRE is particularly attractive to those who value a balance between financial security and a fulfilling, lower-stress lifestyle, making it a well-suited option for many in Singapore.

Several sources highlight the appeal of Barista FIRE in Singapore.  The movement has seen a resurgence due to the COVID-19 pandemic and the Great Resignation, where many people began to reevaluate their work-life balance and financial goals​.  The flexibility of part-time work combined with financial independence is attractive to those who wish to avoid the burnout associated with full-time employment while still maintaining a comfortable lifestyle​.  As such Barista FIRE seems to be the best strategy as it is a compromise between FIRE and employment, so that during the FIRE journey, challenges of pursuing extreme frugality is minimize, with time allocated for enjoyment and travel which helps to create precious memories with your loved ones which is equally important, if not more.

Overall, while FIRE may not be as hyped as before, it still resonates with those seeking financial freedom and a more flexible lifestyle.  For me, Barista FIRE is definitely still the way to go.  Barista FIRE, here I come...!