'Firejok' Practicing Extreme Saving for Early Retirement
Some Say Only High Earners Can Do It
Experts: "Related to Corporate Vertical Culture"
Recently, the number of so-called 'FIRE families' who practice extreme saving with the goal of early retirement is increasing. [Image source=Yonhap News]
[Asia Economy Reporter Heo Midam] "Where do I have money to buy luxury goods? I have to save and save to retire quickly."
Kim Mo (27), a first-year office worker, said, "I try not to indulge in unnecessary extravagance. My acquaintances post on Instagram about 'flexing' by buying luxury bags or wallets, and while I am a bit envious, shouldn't we save for the future?"
He continued, "I often hear that 'you should have fun in your 20s,' but my goal is to save even a single penny and quit the company. The mental stress I receive at work is too great," adding, "My dream after retirement is to travel around various countries in the world."
Recently, a so-called 'FIRE tribe' aiming for early retirement through extreme saving has emerged. They aim to reduce consumption and increase savings to live doing what they want after retirement. Experts analyze that this phenomenon is related to the vertical culture of companies.
The 'FIRE tribe' refers to those who aim for early retirement not at the typical retirement age of 50s to 60s but by their late 30s or at the latest early 40s, drastically reducing consumption from their 20s and saving more than 70-80% of their income.
Originally, the 'FIRE tribe' spread mainly among young, highly educated, and high-income groups in the U.S. after the 2008 global financial crisis. They started saving after witnessing the baby boomer generation (people born between 1946 and 1965), their parents' generation, suffer economic difficulties due to the financial crisis, which caused anxiety about the future.
They refer to those who practice extreme frugality, such as reducing consumption from their 20s and saving more than 70-80% of their income. [Image source=Yonhap News]
The 'FIRE tribe' is also appearing in South Korea. A survey found that 7 out of 10 office workers would retire immediately if they had financial freedom.
According to a survey conducted in November last year by 'Byeolgok Market Job Search' targeting 1,242 office workers, 73.3% of respondents answered 'yes' when asked if they could retire immediately if they had enough financial resources to live until old age.
By age group, the willingness to retire was higher among younger groups: △ 20s (78.6%) △ 30s (76.3%) △ 40s (72.2%) △ 50s and above (70.6%).
However, some view the 'FIRE tribe' skeptically, questioning whether sacrificing present happiness for future happiness is the right choice.
Kim Mo (27), an office worker at a small and medium-sized enterprise, said, "Life is unpredictable. You have to do everything you want so you won't regret it later," adding, "Also, the 'FIRE tribe' is only possible for those with high salaries. After fixed costs like monthly rent and living expenses, there is no money left to save."
He continued, "Even if you save hard now, things change when you get married. When you add up wedding expenses and money spent on children, there really is no money left," adding, "It seems like working all your life is still not enough."
Experts point to the 'vertical culture of companies' as one reason why people in their 20s and 30s desire to be part of the 'FIRE tribe.' Professor Kwak Geumju of the Department of Psychology at Seoul National University said, "Young people want freedom from being tied down and value their personal life and daily routine," adding, "However, being in an organization increases stress due to relationships with superiors and sudden work demands from the company."
She added, "'FIRE tribe' reflects the will of young people to escape rigid company organizations and live freely without worrying about others' eyes."
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