Consumers on FIRE: how the Financial Independence, Retire Early (FIRE) movement affects consumption behaviour. An exploratory study

Purpose This study aims to examine the impact of the Financial Independence, Retire Early (FIRE) movement, an initiative that emerged in the wake of the 2008 financial crisis and gained further traction after the COVID-19 pandemic. It assesses how involvement in the FIRE movement affects individual financial behaviours such as saving, consumption, debt and investment approaches. Design/methodology/approach This study explores this novel phenomenon through an in-depth questionnaire launched on the online platform Reddit, renowned for its significance as a central hub for the FIRE community, as a target forum for participants specifically oriented towards financial independence. Findings The findings reveal a notable shift in financial behaviours following engagement with the FIRE movement, including an increase in saving rates, a reduction in consumption and a heightened emphasis on passive investment strategies. Moreover, the data indicates a preference among respondents for experiential over material spending. Perspectives on debt were diverse, suggesting a nuanced view of indebtedness within the FIRE community. Originality/value This research contributes to the academic discourse related to this phenomenon and offers valuable guidance for managers and marketers of financial products that align with evolving consumer needs.