10 Best Books on Financial Independence, Retire Early (FIRE)

This post lists the best books on Financial Independence, Retire Early (FIRE). If you want to become financially free, educating yourself about FIRE is crucial. You need to know what you’re doing, or you might run out of money.

When I started my journey to financial independence, the first thing I did was devour all the books I could find. There was a lot of trash, but I also found some real gems. Now, I’m sharing them with you!

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1. Your Money or Your Life

First published in 1992, Your Money or Your Life was updated in 2018. The 2018 version features a foreword from Mr. Money Mustache. The author, Vicki Robin, belongs to the voluntary simplicity movement. She is one of the earliest sources of inspiration for FIRE aspirants.

Your Money or Your Life helps readers improve their relationship with money. It goes beyond money management, emphasising other ethical aspects. For this, Vicky takes a nine-step approach:

• Making peace with the past
• Being in the present and tracking your life energy
• Where is all your money going?
• Three questions that will transform your life
• Making life energy visible
• Valuing your life energy: Minimising expenses
• Valuing your life energy: Maximising income
• The crossover point
• Managing your finances

On average, people who complete the steps outlined in Your Money or Your Life reduce their spending by 25%. They also feel happier and have better relationships with others.

2. Playing With FIRE

The author, Scott Rieckens, is a successful entrepreneur living in Southern California. While he was living what many think of as the dream life, he was also depressed and overworked.

The turning point of Scott’s life came when he listened to a FIRE podcast. This sparked his desire to change his life.

Playing With FIRE shows how he quit his job and halved his expenses. The book is humourful and provides excellent case studies.

3. The Simple Path to Wealth

Jim Collins wrote The Simple Path to Wealth after failed attempts to educate his daughter about money. Jim thought of a way to convey his lectures in an easily understandable, concise manner.

And indeed, the core concept of The Simple Path to Wealth is easy to understand. There are three core lessons:

• Avoid debt
• Save half of your income
• Invest it in low-cost index funds

The chatty style appeals to people uninterested in investing while building wealth. Jim is a strong advocate for index trackers. These are popular in the FIRE community to provide a sustainable long-term income.

The Simple Path to Wealth aims towards a younger audience. However, it is also an exciting read for those lacking financial education.

4. Quit Like a Millionaire

Kirsty Shen, the author, retired at 31 with a million-dollar portfolio. Kirsty did not achieve this by winning the lottery or other professional success. Instead, she slowly built sustainable wealth.

Her story is fascinating, starting with the intention of saving for a house. However, instead of becoming homeowners, Kirsty and her partner rented. This choice enabled them to retire early. Quit Like a Millionaire aims to make FIRE accessible to people who can’t identify with the typical early retiree.

It is a helpful tool for those starting their FIRE journey and may also interest those aware of FIRE because of its unique perspective.

5. The Millionaire Next Door 

Thomas Stanley and William Danko researched America’s upper society for this book. The authors discovered that many wealthy people live modestly.

The profile of the average millionaire is not as glamorous as we think. Instead, they are ordinary people living frugally and happily.

From their findings, Thomas and William break down the habits of these millionaires. Unsurprisingly, these align with those generally found in the FIRE community.

At first, I thought The Millionaire Next Door would be “too American”. However, the FIRE concept is the same for anyone around the world. The book is an intriguing read for anyone.

6. You Need a Budget

You Need a Budget (YNAB) is not a FIRE book. I still included it because budgeting is a major struggle in pursuing financial independence. Everyone wants to escape the rat race, but few want to mull over their expenses.

As the title implies, You Need a Budget is a simple book. It removes the complexities of personal finance and focuses on budgeting.

The book includes chapters on:

• Budgeting as a couple
• Slaying debt
• Teaching children to budget
• What to do when you feel like quitting

You can also use the accompanying budgeting software of You Need a Budget. This is especially helpful if you struggle with spreadsheets.

7. Financial Freedom: a Proven Path to All the Money You Will Ever Need

Grant Sabatier wrote Financial Freedom after finding out he was completely broke. Five years later, he was a millionaire. How did he achieve this? By throwing himself into personal finance and learning everything there is.

In Financial Freedom, he provides a step-by-step plan to reach FIRE. Unlike other books, Financial Freedom focuses on side hustling. Grant made $300,000 from side hustling alongside his regular job.

Despite this, Grant does not go crazy about money. Instead, time is the crucial factor for him. You should do what you love rather than work a soulless job.

8. Meet the Frugalwoods

Elizabeth Willard Thames is another early retiree who achieved financial independence at 32. Like many others, Elizabeth and her husband started as nine-to-five workers. By living frugally, they were able to save 70% of their income.

Meet the Frugalwoods is not a manual that provides a step-by-step roadmap. Instead, it follows Elizabeth’s life, like an autobiography. However, that does not mean Meet the Frugalwoods is boring. It is easy to read and provides much food for thought.

9. Work Optional: Retire Early the Non-penny-pinching Way

Work Optional by Tanja Hester wins the prize for the nicest cover (in my opinion). When I tell people about my plan, many reply that retirement is dull. And I agree, traditional retirement doesn’t sound exciting.

This is where I felt Work Optional understood me. Tanja emphasises that being financially independent does not mean boredom 24/7. Tanja emphasises this in three sections:

• Determining what kind of life will thrill you
• Creating a conservative financial plan to be able to live that life
• Adapting to live your best “post-work” life

10. Set for Life: Dominate Life, Money, and the American Dream

Set for Life is a new addition to my list of books on Financial Independence, Retire Early (FIRE). It outlines the path to FIRE for ordinary people. The author, Scott Trench, is the CEO and President of BiggerPockets. BiggerPockets teaches how to invest in real estate.

In addition to writing, Scott is an active real estate investor in the Denver market. He manages a private portfolio of about $1.5M and holds a real estate license as a Colorado broker.

In Set for Life, Scott breaks down financial independence into three phases:

• Part 1: The first $25,000
• Part 2: $25,000 to $100,000
• Part 3: Moving from $100,000 to financial freedom

While the concept is American, the principles apply to people in other countries. Scott clearly defines each phase with set objectives and strategies. For example, the first phase is being frugal to save the first $25,000.

In part 2, Scott advises making bolder financial decisions. He introduces house hacking as a way to mitigate housing costs. Interestingly, Scott does advocate for side hustles. Instead, he recommends focusing on your career.

Lastly, part 3 focuses on passive income streams. This includes investing in real estate for financial independence. Set for Life focuses on actions rather than theoretical thinking.

Best Books on Financial Independence, Retire Early (FIRE) Summary

The best books on Financial Independence, Retire Early (FIRE) include:

• Your Money Or Your Life
• Playing with FIRE
• The Simple Path to Wealth
• Quit like a Millionaire
• The Millionaire Next Door
• You Need a Budget
• Financial Freedom
• Meet the Frugalwoods
• Work Optional
• Set For Life

Before spending money buying these books, visit your local library. Borrowing them is a great way to save money.

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