It’s a familiar story: a reader recently commented on one of my posts, sharing their frustration about the challenges of achieving financial independence (FI) in today’s world. They pointed out that much of the advice offered by FI bloggers—especially those who entered the tech field in the early 2000s and bought homes at ridiculously low prices—seems out of reach for those starting later in life or those who don’t have six-figure salaries.
They also raised valid concerns about housing affordability, pointing to rising home prices and high interest rates that have made owning a home feel like a distant dream. Many of the popular FI strategies—like “house hacking” or buying fixer-uppers—seem impractical or downright impossible in today’s market. For those living in areas with restrictive zoning laws, the dream of owning a home or creating rental income through a property just seems out of reach.
This critique gave me pause, and I took some time to think about it. Is FIRE (Financial Independence Retire Early) really becoming obsolete? Is the advice I’ve been offering losing relevance? Or is it just the inevitable result of people trying to avoid hard truths? Let’s break it down.
The High Salary Myth
The comment raised an interesting point about the role of high salaries in the FIRE equation, especially in tech. It’s true that many of the early FIRE adopters—myself included—came from industries where high-paying jobs were more accessible, especially during the tech boom. Tech salaries and the ability to buy homes at bargain prices before 2019 did create an ideal environment for early retirement.
But here’s the thing: earning a high salary is not the golden ticket to financial independence. While it certainly helps, there’s a huge gap between high income and financial freedom. Over the years, I’ve seen many high earners—doctors, lawyers, software engineers—who still struggle financially. Why? Because no matter how much you make, you can always spend more. The lifestyle inflation that comes with a bigger paycheck is a very real problem. You buy a bigger house, a nicer car, and more expensive vacations, and before you know it, you’re still living paycheck to paycheck.
That’s why, here on the blog, I focus on how to spend less rather than earn more. The key to financial freedom isn’t just making a high income—it’s learning to live below your means. Whether you’re earning six figures or just getting by, knowing how to streamline your spending is a game-changer. And if you’re earning less than the tech elite, these principles become even more crucial.
Housing: The Big Hurdle
Now, let’s talk about housing. The reader’s comment rightly points out that house prices have skyrocketed in the past few years, and the rising interest rates have made it harder to afford homes. Is this a deal-breaker for the FIRE community?
In one sense, yes. Housing is one of the biggest expenses in most people’s budgets, and when prices increase faster than wages, it becomes harder to save and invest for the future. But let’s take a closer look at the numbers. According to data from the St. Louis Fed, home prices, adjusted for inflation, are roughly 25% higher now than they were at the start of 2019. That’s a significant jump, but it’s not as catastrophic as it might seem.
In fact, home prices are only about 10% higher than they were during the last housing peak in 2006, which means that we’re not seeing the kind of runaway inflation that caused the housing crash in 2008. Sure, housing feels expensive right now, but when you put it in historical context, it’s not necessarily out of line with long-term trends.
That being said, some areas—like where I live in Longmont, Colorado—have experienced much steeper increases. When I first started writing in 2011, the median home price here was just over $200,000. Now, it’s a jaw-dropping $540,000. This has made homeownership much less accessible for the average person, and it’s a real challenge for anyone trying to build wealth through real estate.
The Reality of Today’s Housing Market
So, does this mean that FIRE is out of reach for most people now? Not necessarily. While housing has become more expensive in certain markets, there are still ways to make homeownership more affordable. The first step is to recognize that not every home needs to be a forever home. The strategy of buying a fixer-upper or a home in an up-and-coming area may still work for some people, even if it’s harder than it used to be.
If you’re looking to buy, consider alternative strategies like renting in a more affordable area while you save for a down payment. This can give you time to ride out the housing market’s fluctuations and buy when the prices are more reasonable. Or, if you’re open to living a bit further out from the city, you might find a more affordable home in a less popular location.
And, of course, house hacking is still a viable option in many places, even if it’s more complex. While some areas have restrictive zoning laws, others offer more flexibility. It’s worth doing some research on your local market to see if there are opportunities for creating rental income from your property.
What’s Next for FIRE?
The landscape of financial independence is shifting, but that doesn’t mean it’s going away. As the world changes, so too must our strategies. While high salaries in tech may no longer be the cornerstone of FIRE, the principles of financial independence are still very much alive.
We’ve seen it before: FIRE has been written off as a passing trend during the dot-com crash, the 2008 financial crisis, and even during the pandemic. But each time, it has emerged stronger. The future of FIRE will likely look different from the past, but the core ideas—living below your means, being strategic with your finances, and focusing on long-term goals—remain as relevant as ever.
In the end, the key to affording a house and achieving financial independence is less about timing the market or earning a high salary and more about adopting a mindset that prioritizes value over excess. Whether housing prices are high or low, the principles of Mustachianism can help you navigate this challenge and build a fulfilling, financially free life.
