This physician retired at the age of 45 but soon fell into a state of profound depression. Here’s what he identifies as the issues with the FIRE movement.

But some FIRE-breathers, like Dr. Jordan Grumet of Evanston, Ill., are having second thoughts.

Read: Forget retirement, focus on financial independence

When he was engulfed in flames

Frugality has been a timeless practice, but it gained significant traction in the mid-2010s with the rise of the FIRE movement. This diverse group of individuals focused on saving and investing aggressively, aiming to spend less than they earned. Their ultimate goal was to achieve financial independence many years ahead of the conventional retirement age.

Grumet became intrigued with FIRE at age 41 in 2014, when he was feeling burned out and unhappy running his concierge practice full tilt. That’s when he read the FIRE book, “The White Coat Investor,” by emergency room physician James Dahle, who retired at 38. 

"That book transformed my perspective," Grumet remarked. "It provided clarity on a pressing question that had been on my mind: How much is enough?" According to Dahle, if you limit your withdrawals to no more than 4% annually, taking inflation into account, you'll require about 25 times your yearly expenses to achieve financial freedom and enjoy a comfortable retirement.

In 2014, Grumet's practice, catering to 150 patients, generated an annual revenue in the upper six figures. Alongside his wife Katie, who was employed in human resources, they were committed to saving and investing wisely. At that time, they were raising two young children and maintaining a modest lifestyle without extravagant expenses. 

“Just like many others in the FIRE movement, I took the plunge and embraced a more frugal lifestyle,” Grumet explained. “For a year or two, I found myself thinking, ‘Let’s avoid spending on this. Let’s reduce our expenses here.’” 

In 2018, at the age of 45, Grumet made the decision to close his practice and embrace the FIRE lifestyle. And that's exactly what he did.

However, that transition resulted in what he describes as overwhelming anxiety. Grumet shared, “I felt quite profoundly depressed.” Reflecting on that period, he noted: “It was thrilling initially, but then it became frightening for the following six to twelve months.”

Read: The FIRE movement is a hot topic — but irrelevant to most Americans

Reevaluating the principles of FIRE

Over time, Grumet emerged as one of the FIRE enthusiasts who began to rethink the movement's principles. He felt that it focused excessively on accumulating wealth while neglecting the importance of meaning and purpose in life.

“I made the mistake that everyone in FIRE makes, which is: ‘My goal is not to run out of money.’ We forget that money is a tool that’s supposed to serve us,” Grumet said.

As time went on, he mentioned, “Many of us came to understand that financial wealth pales in comparison to the value of a fulfilling life. Once we get a handle on our finances, more profound inquiries emerge: Who am I really, what do I aspire to achieve, and how do I define my purpose?”

Grumet says he’s now the happiest he has ever been because he has found purpose in a variety of ways — a portfolio of side hustles including hospice work, his Earn and Invest podcast, public speaking, blogging and book writing. 

Supplemental income options during retirement

Together, these passion-driven side jobs have proven to be quite profitable. "I anticipate earning somewhere between $80,000 and $100,000 annually, if not more," Grumet mentioned. 

Grumet believes he puts in around 60 to 70 hours each week, yet he remarked, “It doesn’t seem like that to me. I feel as though I have plenty of free time.” He added, “I don’t differentiate between days off and workdays; it’s simply my life.”

He’s quick to call his side hustles examples of “small p” purpose, rather than “Big P” purpose. The difference is a strong theme of the second book he just released, “The Purpose Code” (the first was “Taking Stock”).

According to Grumet, the pursuit of a significant "Big P" purpose, along with lofty and ambitious goals, often leads to anxiety for individuals, particularly as they approach retirement. 

Grumet remarked that he pursued a career in medicine with the hope that it would provide him with a profound sense of purpose, often referred to as "Big P." This choice was influenced by the emotional scars left from his father's passing at 40, who was an oncologist. "Eventually, I adopted my father's interpretation of purpose," he reflected.

Read: Why does the early-retirement movement have so many haters?

The danger of experiencing 'purpose anxiety'

That created purpose anxiety — the doubt and worry that can plague people when they are trying to find a sense of meaning. Researcher Larissa Rainey found that up to 91% of people have purpose anxiety at some point in life, Grumet noted. 

"Feeling anxious about their purpose leaves them feeling frustrated and downcast," he remarked.

Grumet noted that when he inquired about the regrets of his hospice patients, their responses often revealed sentiments that were profoundly significant to them, with none of the regrets pertaining to financial matters.

Grumet expressed that he authored his books to convey the messages of hospice patients to those focused on financial concerns. He stated, “You’re preoccupied with money, but let’s move beyond that and consider what truly matters to you.”

You may discover your "small p" purpose in various ways, whether it's through your job, volunteering, engaging with music, traveling, or pursuing hobbies. Grumet suggested, "Experiment with different activities and see which ones bring you joy."

The potential pathways of 'little p' purpose.

According to Grumet, infusing your life with a sense of “little p” purpose can foster deeper and more meaningful connections. He believes that these interpersonal bonds are key to achieving a satisfying and enriching retirement experience.

"I've got far more friends now than I've ever had," Grumet remarked. "It feels like I'm living a much more involved life." He continued, "My aim is to pursue what truly excites me; I believe that when we engage in those kinds of activities, it naturally draws others to us."

When seeking to establish a sense of purpose in your life, Grumet suggests employing “the art of subtraction.” Create a list of activities you can eliminate that don’t bring you joy, and begin dedicating more time to pursuits that truly fulfill you — your purpose anchors. 

What he currently dislikes about the FIRE movement

When considering his perspective on the FIRE movement, Grumet remarked: “There are aspects I truly appreciate, while others don’t resonate with me as much. In fact, many of us have stopped using the term FIRE altogether. We prefer to refer to it simply as FI or financial independence, since the early retirement aspect isn’t really the main focus.”

Grumet pointed out that the FIRE movement has evolved into various FI categories, including Coast FI, which focuses on earning sufficient income early on to invest and enable a later retirement with less stress, and Slow FI, which emphasizes achieving gradual financial freedom throughout the journey toward independence, fostering a happier and healthier lifestyle enriched by meaningful relationships.

Grumet remarked, “We excel at fretting over depleting our finances. However, we are quite poor at being concerned about the fleeting nature of time.”

Recently, Grumet mentioned that he and his wife have begun to spend significantly more than they ever did before, particularly on renovating their home.

“Money is a great tool. If you happen to have that tool, you can pay someone else to do the things you don’t want to do so you can do things you do want to do,” said Grumet.