Podcast Summary: What We Spend – Episode: On FIRE
Episode Information:
- Title: On FIRE
- Host/Author: Audacy
- Release Date: July 2, 2025
- Description: What We Spend delves into the financial lives of individuals across the nation, exploring their incomes, desires, and one week of expenditures. This episode focuses on Michelle, a self-employed copywriter from Australia, and her journey towards Financial Independence, Retire Early (FIRE).
1. Introduction to FIRE Movement
The episode begins with the host, Courtney Harrell, introducing the concept of the FIRE movement—Financial Independence, Retire Early. Courtney explains that FIRE is not a centralized movement but a philosophy emphasizing intentional spending, saving, and investing to achieve early retirement.
Key Points:
- Origins: Traces back to the 1992 book Your Money or Your Life and the 2011 blog Mr. Money Mustache.
- Community Growth: Highlights the expansion through bloggers, vloggers, podcasters, and a substantial Reddit community.
Quote:
"Movement is probably the best word to describe it, because it doesn't belong to one original mastermind... it's a base philosophy." – Courtney Harrell [03:03]
2. Types of FIRE
Michelle elaborates on the various subtypes of the FIRE movement, illustrating the diversity within the community.
Types Discussed:
- Fat FIRE: Achieving financial independence with a high standard of living and numerous luxuries.
- Lean FIRE: Minimalist approach focusing on the fastest route to retirement by minimizing expenses.
- Chubby FIRE: A balanced approach between Fat and Lean FIRE.
- Geo FIRE: Retiring by relocating to a region with a lower cost of living.
- Coast FIRE: Saving diligently towards retirement while continuing to work part-time or minimally.
Quote:
"Fat Fire is where you... reach your earlier preservation age and enjoy a very high standard of living with lots of luxuries." – Michelle [05:32]
3. Michelle’s Journey to FIRE
Michelle shares her personal journey into the FIRE movement, emphasizing the shift in her retirement goals influenced by her career and family life.
Background:
- Profession: Self-employed copywriter.
- Location: Central coast of Australia, north of Sydney.
- Family: Married with two children, ages one and five.
- Income: Combined annual income of approximately AUD 330,000 (~USD 214,000).
Initial FIRE Goal: Michelle initially aimed to retire by age 35 but acknowledges that having children has adjusted her timeline and aspirations.
Quote:
"Once I did all those calculations, that number sat pretty firmly at like 35... By 35, we would still be on track." – Michelle [02:13]
4. Financial Overview and Spending Patterns
The episode delves into Michelle and her husband's financials, detailing their income, expenses, investments, and strategies to maintain their path towards FIRE.
Key Financial Details:
- Income:
- Michelle: AUD 150,000/year
- Husband: AUD 180,000/year
- Rental Income: AUD 3,000/month from a Sydney apartment
- Expenses:
- Mortgages: AUD 8,000/month
- Utilities and WiFi: AUD 100/month
- Property Taxes: AUD 700/quarter
- Transportation: ~AUD 50-60/week on petrol
- Groceries: AUD 3,000/month
- Childcare: AUD 665/month for private school, AUD 700/month for daycare (with 50% subsidy)
- Other: Gym memberships, therapy, business subscriptions, and entertainment
Investment Strategy:
- Focus on long-term, slow-burn investments like property.
- Emphasis on investments that grow over time and provide regular income, such as rental income.
Quote:
"We just working hard, not spending a lot of money, investing. That's like the whole thing." – Host [06:55]
5. The 7-Day Spending Diary
Michelle and her husband document a week of their spending, providing an insightful look into their financial discipline and adaptability.
Day Highlights:
- Day 1: Mortgage payments (AUD 8,218.65), cleaning services (AUD 285), gym membership (AUD 63.50), daycare (AUD 365.15).
- Day 2: Therapy (AUD 180), groceries (AUD 52.34), coffee (AUD 7.62), family date night expenses.
- Day 3: Medical expenses including doctor's visits and pharmacy purchases (total AUD 643.41).
- Day 4: Continued medical costs and daily necessities (total AUD 5,000+ omitted for brevity).
- Day 5: Termite inspection (AUD 300) and dog wash (AUD 61.14).
- Day 6: Easter show expenses (AUD 422), balancing fun and budget.
- Day 7: Driving range (AUD 12), personal care (AUD 49.85), therapy (AUD 165).
Insights:
- Outsourcing Services: Michelle emphasizes the value of outsourcing tasks like cleaning and dog washing to save time and reduce personal stress.
- Emergency Preparedness: Maintaining an emergency fund allows them to handle unexpected expenses without derailing their FIRE plan.
- Family Priorities: Decisions are often made with the children's well-being in mind, balancing financial goals with family needs.
Quote:
"I felt my mood lift straight away when she’d finished because it just looked so nice and organised, like a show home." – Michelle [21:08]
6. Reflections on Retirement and Current Life
Towards the end of the episode, Michelle reflects on her evolving perspective on retirement and how her priorities have shifted since embarking on the FIRE journey.
Current Perspective:
- Extended Timeline: Originally aiming for retirement at 35, Michelle now envisions a gradual reduction in work intensity in her 40s, eventually focusing solely on passion projects like writing books by her 50s.
- Value of Work: Work provides her purpose beyond motherhood, enriching her life rather than being a mere financial necessity.
- Gratitude and Present Focus: Appreciates the balance between financial discipline and enjoying the present moments with her family.
Quote:
"I could not have asked for more in this life than I have now. I feel so grateful and happy." – Michelle [43:15]
7. Conclusion
The episode concludes with Michelle expressing her contentment with her current life balance, highlighting that the FIRE journey has enabled her to be present for her children while maintaining financial security. The host, Courtney, provides information on how listeners can connect with Michelle through her blog for more insights into her FIRE journey.
Final Thoughts:
- FIRE is a dynamic journey that adapts to life changes such as family growth.
- Financial independence provides the freedom to prioritize personal happiness and family well-being.
Quote:
"I'm just going to keep going with that." – Michelle [16:33]
Additional Resources:
- Michelle’s Blog: thatgirlonfire.com – For more detailed insights into Michelle’s FIRE journey.
Podcast Credits:
- Host: Courtney Harrell
- Producers: Margo Gray, Kristin Torres, Justine Dahm
- Editor: Jonathan Menhibar
- Executive Producers: Maddie Sprung Keyser, Asha Saluja, Leah Reese Dennis
- Music: Matt McGinley (Theme), 8pm Music (Additional)
Contact:
- Be a Guest on What We Spend: whatwespendpodcast@gmail.com
This summary provides an in-depth look into Michelle’s financial strategies, personal reflections, and the practical application of the FIRE movement principles, making it a valuable resource for listeners interested in financial independence and early retirement.