The Wall Street Journal ran an interesting piece this week listing the FIRE (financially independent & retired early) movement as a key development in personal finance over the last decade. The overall focus of the story is on the 2010s as the “Decade of Frugality”.
We started our journey to FIRE long before we knew the FIRE acronym and many years before the 2010s began. That said, it’s great to see a positive personal finance trend is making the headlines after the financial debacles of the previous decade and the Great Recession. Society was better known for McMansion mortgages, soaring credit card debt, and widespread ‘affluenza’ at the end of the 2000s.
Below is an encouraging WSJ chart (from the article) on the growing US personal savings rate, based on Federal Reserve data. It’s great to see savings as high as they have been at any point in the last 25 years:
It’s interesting that the chart shows savings fell during the relatively prosperous 1980s and 1990s. You would think economic prosperity would be good for savings, but I guess that hasn’t always been the case.
Let’s hope that the principles of FIRE and living more frugally continue to guide behavior throughout the next decade.
How is your 2019 savings rate looking?
Image Credit: Pixabay