Personal Finance
The Surprising Link Between Budgeting and Sobriety
A Reddit user in r/FIRE shared the unexpected side effects of personal finance self-reflection.
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Reddit is the epicenter of Financial Independence, Retire Early (FIRE) culture. FIRE is a personal finance methodology in which participants save aggressively to reach various money milestones and reshape their lifestyle. FIRE enthusiasts have collectively paid down millions of dollars in personal debt, bought back their time and changed the direction of their destiny.
But FIRE — or just “FI,” if you cut out the retiring part — can also be really elitist. A recent survey of the r/financialindependence subreddit found that, out of 1,850 respondents, the median annual income was $205,000 — over quadruple the median American income in 2023. It’s easy to save tens of thousands of dollars a year when you have that kind of money flowing in. Without excess income, it can be difficult to even get started with FIRE.
“Out of 1,850 respondents, the median annual income was $205,000 — over quadruple the median American income in 2023.”
It’s still worth it to resist financial nihilism and look at your money, though. And that’s what I love about the communities within the FI movement: For every unrelatable tech bro boast or tax leveraging rabbit hole, there’s an equally fascinating thread that shines a light on the connection between money and behavior.
Here’s one I found the other day in which the original poster (OP) recalibrated his relationship with alcohol as a result of FI-related spending tweaks.
“This sub can sometimes get filled with stories of people with FIRE tunnel vision depriving themselves of things that make them happy in the present, so I thought it would be nice to share an example of how FIRE can actually help people improve their current lives -
As a previous non-alcoholic but way-over-recommended-amount drinker who had steadily increased my intake over time, I had never realized how much it was impacting my energy level/ mental clarity/ mood. Beginning FIRE led me to look over my spending and realize how much I’d been shelling out for alcohol — I wound myself down from 5–6 nights a week to 1–2 nights a week and now, as an unforeseen benefit, I have much more energy and just generally feel much better. It’s a double win (with the money being the lesser importance).”
Pretty powerful stuff, right?
Why Budgeting Cultivates Gratitude
I interview a lot of people who have achieved or are pursuing financial independence. One theme in these conversations is the idea that learning how to be happy with less is important for sustainable budgeting.
We are bombarded with consumption messaging constantly. There are more e-commerce integrations on social media and news sites than ever before. And thanks to digital wallets, that next dopamine hit from impulse shopping is just a few taps away on your smartphone, which you probably keep within arm’s reach every waking hour of the day. Resisting this can be tough.
By exercising financial discipline and restraint, we start to detox our brains from this impulsiveness. And often, this mental clarity begins to spill over into other areas of our lives, as was the case with RVANo8010.
Get Curious About Your Money Behaviors
Personal finance isn’t just about numbers on a spreadsheet. It can serve as a mirror, too. When we look at our thoughts and behaviors related to money, we’re forced to come to terms with why we behave the way we do in various areas of our lives.
There’s a popular saying in time management: “Show me your calendar, and I’ll show you your priorities.” The same applies to your budget, too.
Take some time to create and pursue personal finance goals. Then see what else changes along the way. The best outcomes and positive life shifts might not have anything to do with money at all. ◆
Nick Wolny is a professional editor, writer and finance columnist for Out magazine.
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