By Early Retirement Earl | Originally Published May 3, 2019
Updated October 13, 2025
Look, I’ve been broke. Like, eating Pop Tarts for three days straight, scrounging spare change for gas to get to work, and lying awake at night wondering if I’d make rent. Those days sucked. They weren’t just stressful—they were soul-crushing. So when people say, “Money can’t buy happiness,” I call BS. Money can buy happiness, especially when you’re chasing Financial Independence, Retire Early (FIRE). It’s not about gold-plated yachts or fancy watches—it’s about freedom, peace, and living life on your terms. Let me tell you how I learned this, why science backs it up, and how FIRE can make you happier than you’ve been since you were a kid playing in the backyard with no worries.
The Science Says Money Matters (Up to a Point)
I’m not making this up—science has my back. Back in 2010, a Princeton University study found that people making less than $75,000 a year felt unhappier the lower their income dropped. Stress, worry, you name it—it piled on. But once you hit $75k, extra cash didn’t add much more joy. Fast forward to 2018, Purdue University updated this (check the USA Today report), pegging the magic number at $105,000 in the U.S. Same deal: below that, life’s rough; above it, happiness plateaus.
But here’s where it gets interesting for us FIRE folks. A 2021 study by Matthew Killingsworth (also via PNAS) said happiness can keep rising past $105k for some people, especially if you use money to buy time—like quitting a soul-sucking job. That’s the FIRE gospel right there: save enough to cover your needs, then use the surplus to live free. For me, that’s what happiness looks like. Let’s break down how money (and FIRE) makes it happen.
How FIRE Turns Money Into Happiness
When I was a kid, happiness was easy. I’d spend Saturdays building forts in the woods, dreaming I was an astronaut or a pirate, no limits. The world was wide open. Then I grew up, and the real world hit like a ton of bricks—bills, jobs, responsibilities. That carefree kid disappeared. But chasing FIRE brought him back.
Here’s how having enough money (and a plan to make it last) buys happiness, based on my own journey and what I’ve learned grinding toward financial independence.
1. No More Sleepless Nights Over Bills
I’ll never forget the nights I’d stare at the ceiling, heart pounding, wondering if I’d have enough to cover rent. Or the times I’d scrape together quarters from my couch to put gas in my car just to get to my shitty retail job. Those moments weren’t just stressful—they made me feel like a failure. Money fixes that. Not millions, just enough to know you won’t starve or lose your home.For FIRE folks, this means hitting a savings goal that covers your basics. Let’s say you need $40,000 a year to live comfortably.
Using the 4% rule (withdrawing 4% of your portfolio annually), that’s a FIRE number of $1 million. In 2025, with inflation around 3% (per Investopedia), you might need $1.2 million by 2030. Sounds big, but start saving $20k a year at 7% returns, and you’re there in 15–20 years. No more stress, no more Pop Tart diets.
2. Kicking Financial Anxiety to the Curb
Even when I wasn’t starving, I used to dread the end of the month. I’d juggle bills like a circus act—pay the electric, skip the credit card, pray nothing bounced. One time, I wrote a check for groceries knowing it might not clear, just so I could eat something besides ramen. That’s financial anxiety, and it’s a happiness killer.FIRE changed that. As I started earning more and saving smarter, I stopped playing bill roulette. I built an emergency fund (3–6 months’ expenses, per Bankrate), paid off my credit card debt, and got control. Suddenly, I could spend a Sunday hiking with friends instead of sweating over a calculator.Action Step: List your debts and pick one to crush this year using the snowball method (smallest balance first). Check my Debt Payoff Guide for a step-by-step plan.
3. Freedom from the 9-to-5 Grind
I’ve worked over 30 years for the same company. Decent gig, but I hated being told what to wear, when to eat, and how to act, … Only to be chewed by my boss anyway after my 5th 12-hour day in a row. I will never forget the time I was asked to cancel a vacation and was subsequently told I wasn’t doing enough to help out. That’s when I knew: I needed out. FIRE gives you that power to say, “Screw this, I’m done.”
With enough savings, you don’t need a boss’s approval to live. For me, that meant hitting $500k in investments (mostly Vanguard VTI) and a side hustle pulling in $10k a year. Now, if I don’t like a job, I walk. That freedom? It’s like being a kid again, choosing your own adventure.
Action Step: Start a side hustle to boost your savings. Try reselling thrift store finds on eBay or consulting with AI tools.. Every extra buck gets you closer to freedom.
4. Owning Your Time
Time’s the one thing you can’t get back. When I was a kid, weekends felt endless—building forts, riding bikes, no clock ticking. Now? Work eats 40–50 hours a week, and I’m lucky to get a Sunday afternoon to myself. FIRE flips that script. Money, invested right, replaces your paycheck so you decide how to spend your days.
Imagine waking up without an alarm, choosing to surf, read, or just sit on your porch with coffee. I tested this with a 3-month mini-retirement last year—lived cheap in, Organized the basement and garage, built some shelving from scratch, and felt alive again. It proved: control your time, and happiness follows.
Action Step: Plan a 1-month mini-retirement. Save $5k and test a low-cost spot like Asheville, NC (per Zillow’s 2025 Trends).
5. Chasing Epic Experiences
I’ve been lucky enough to see some incredible shit. I’ve walked inside the Colosseum, swam in Greece’s crystal waters, kissed the Blarney Stone, and stared at the Grand Canyon’s vastness. None of that was free. Travel, movies, concerts—whatever lights you up—costs money. FIRE makes it possible without breaking the bank.
Last year, I budgeted $10k for a trip to Santorini. Sounds fancy, but I used points from a Chase Sapphire card and stayed in a cheap Airbnb. Total cost? $4k. Without a job tethering me, I stayed a month. That’s the FIRE life—epic experiences on your terms.
Action Step: Pick one dream experience (e.g., a national park trip). Save $100/month in a high-yield savings account like Ally to make it happen.
6. Giving Back Feels Damn Good
Nothing beats helping someone out. But when you’re broke or working 50 hours a week, you’ve got no cash or time to give. FIRE changes that. Last year, I donated $500 to a charity I love—no stress, just joy.
With financial independence, you can be generous without worrying about your own bills. Imagine mentoring kids or building houses for Habitat for Humanity because you can. That’s happiness money can buy.
Action Step: Commit to one volunteer hour this month. Find local opportunities on VolunteerMatch.
Your 2025 Happiness Plan: Start FIRE Now
Money doesn’t buy happiness if you blow it on dumb stuff like a third car or designer shoes. But used right—through FIRE—it buys freedom, peace, and a life you love. I went from Pop Tarts and panic to traveling the world and sleeping soundly. You can too.
Here’s your 30-day challenge to kickstart your FIRE journey:
- Week 1: Track your expenses with Mint and calculate your FIRE number with my 2025 FIRE Calculator.
- Week 2: Open a Vanguard account and invest $100 in an ETF like VTI.
- Week 3: Cut one expense (e.g., cancel a subscription) and redirect the savings to debt or investments.
- Week 4: Bookmark Early Retirement Earl and share your goal in the comments below.
Why 2025 Is Your Year to Be Happy
I’m not saying money solves everything. But it buys food, shelter, time, and freedom—the building blocks of a happy life. FIRE isn’t just about retiring early; it’s about living like that carefree kid again, without the stress of bills or bosses. In 2025, with inflation biting, you need a plan more than ever. Start today, and you’ll be amazed how far you get.
Got a story about how money (or lack of it) affected your happiness? Drop it in the comments
He didn't just save his way to freedom; he built a compounding engine. By combining "Bogleheads" index investing with a conservative options strategy, Earl turned a late start into a total victory. He’s not just talking theory—he’s living the math. Last year alone, Earl generated $78k in options premiums via the "Wheel" strategy and ~$400/month in passive dividends, proving that liquidity is the true key to quitting early.
Launched in 2019, EarlyRetirementEarl.com is a no-BS zone for dads and late-starters who want actionable, battle-tested steps to freedom. Featured on ThinkSaveRetire and Camp Fire Finance, Earl’s mission is to share the financial literacy he was never taught in school. No fluff, no gurus—just the math.
Not financial advice. I’m not a CFP or licensed advisor. All numbers are historical; markets fluctuate. Past performance is not indicative of future results. Do your own research and consult a professional.
