Escapism & freedom and well-being concerns drive FIRE, claims IIM-I study

With the FIRE (Financial Independence, Retire Early) gaining traction as more and more individuals aim to escape the rat race and achieve financial freedom at an earlier age, a study by IIM Indore revealed two primary factors that are driving individuals towards the pursuit of financial independence and early retirement.

- Atul Gautam

According to the study, which surveyed 24 FIRE-focused online communities across social media platforms like Reddit, Facebook, LinkedIn and Quora, "escapism & freedom from the current workplace and life space" and "growing concern for physical & mental well-being" are motivating the FIRE attitude.

These two factors are the outcome of four motivators viz "individual characteristics" [do-it-yourself (DIY) and proactive attitude, the capability of frugal living and ability to plan, track, and review], "well-paying job", "support from spouse", and "resistance from social groups".

The new research conducted by Prof Jatin Pandey and PhD scholar Abdul Wahid Khan also shed light on implications for the wealth management industry.

The researchers analyzed a total of 3788 posts from online communities dedicated to FIRE discussions, eventually narrowing the data to 551 relevant posts. They used a qualitative research method known as "netnographic analysis" which examines cultural experiences embedded in online social practices to analyze the content.