The "FIRE" movement—which stands for Financially Independent, Retire Early—is a lifestyle trend where people save as much money as possible to leave the workforce at a young age. While some people might think these saving methods are extreme, followers of the movement view them as a game to win their freedom.
Alan and Katie Donegan, a couple from southern England, are famous examples of the FIRE lifestyle. They retired in 2019 when Katie was 35 and Alan was 40. Over ten years, they saved and invested their money until they reached their target of £1 million. Before retiring, Katie worked as an actuary and Alan worked as a landscape gardener before starting a life-coaching business.
To reach their goal, the Donegans lived very frugally. They packed their own lunches for work every day for a decade, which Alan estimated saved them around £40,000. During the winter, they did not turn on the central heating in their house. Instead, they wore extra layers of clothing and used hot water bottles. They also avoided takeout food and actively hunted for supermarket vouchers and discount codes.
The Donegans emphasize that they did not feel like they were suffering. For them, every pound saved was a step closer to leaving their jobs. They invested their savings into low-cost index funds, allowing their money to grow over time. Once they achieved financial independence, they stopped working traditional jobs.
Today, the couple runs the Rebel Finance School, a free online school that teaches other people how to manage their money, pay off debt, and invest. The FIRE movement has grown from a small online community into a global trend, with people using social media to share tips. Many who achieve early retirement do not stop working entirely; instead, they use their freedom to do work they truly care about.