What we’ve seen is that members of this movement weren’t hurt by this combination of high inflation and high interest rates; in fact, many of us emerged from this period even wealthier than before
One group of people who have been curiously spared from the pain of soaring inflation, is the FIRE movement.
However, this article isn’t about early retirement. It’s about whether FIRE can withstand the effects of soaring inflation. There are dangers to this approach, as many people have discovered. Buying the biggest house you can afford may seem like good advice, until your mortgage payment balloons and you find yourself struggling to afford groceries.Traditional financial advice states that buying is better than renting because buying provides you with stability, while renting doesn’t. For the FIRE movement, this lack of stability is a pro, not a con.
Renting also enables our family of three to only upgrade our space when our child is older or if they end up with a sibling. If we had bought, we’d likelyAnd while rent can still go up in times of high inflation, the more predictable amount you’re paying versus the potentially fluctuating mortgage costs homeowners face means you have more money to invest in assets that grow with inflation.
Interest Fire Debt Stability Space Movement Income Kristy Shen Bryce Leung
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