From Seattle, WA, Matt recently called into The Ramsey Show to share his journey and seek advice about his struggles with the FIRE (Financial Independence, Retire Early) movement.
"I currently have three jobs, and I spend more than 12 hours a day working," Matt explained. "I save and invest about half of my income, so I’m saving about $100,000 a year. So, financially, we’re sound. But it comes with a cost. I’m not spending enough time with my children, and my health is deteriorating. I’m not dying, but it’s impacting me negatively."
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Dave Ramsey asked Matt about his investments and savings, learning that Matt had accumulated a half-million dollars and invested in four homes, including three rental properties worth around $600,000 each. Matt explained that he has about 40% equity in the homes. Despite having $350,000 in savings and $1.3 million in equity, Matt is concerned about his future and the sustainability of his current lifestyle, stating that he doesn't want to go back to living paycheck to paycheck.
Ramsey responded with his trademark directness, highlighting the emotional toll of Matt's situation. "Honey, you're not living paycheck to paycheck. You're putting $100,000 away. Quitting two jobs is not going to make you live paycheck to paycheck. You're so exaggerating that."
As Ramsey and co-host John Delony dove deeper into Matt's concerns, Matt admitted that his involvement in the FIRE movement had led him to prioritize financial goals over his well-being and time with his family.
Ramsey critiqued the FIRE movement, saying, "Yeah, the FIRE movement burned down. Did you notice? It burned to the ground. It burned around people's ears because they were trying to do something that wasn't sustainable. What you're doing is not sustainable. You didn't build a life; you built a financial portfolio, and now your brain is waking up and saying ‘Go build a life,' and we're saying ‘Yes, go build a life.'"
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Delony added another perspective, suggesting that Matt's children prefer time with their father over material wealth. He emphasized the importance of balancing success with personal fulfillment and family time.
Ramsey advised Matt to reassess his priorities and quit two of his jobs. "Your net worth is $2 million, and you're 40 years old. Ding ding. You rang the bell. You're done. If you don't do anything else, you're gonna be worth $20 million at 65. If you just let the investments that you have grow, that's all. There's no need to panic here."
Ramsey and Delony also highlighted the psychological impact of debt and the relentless pursuit of financial goals, comparing it to a never-ending chase that ultimately leads to dissatisfaction. They encouraged Matt to trust his instincts, reduce his workload, and enjoy his life.
For others facing similar dilemmas, consulting a financial advisor can help you align financial strategies with your personal, long-term goals, ensuring a balanced and fulfilling life.
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