At Fire and Lifestyle, we believe that life is meant to be lived! While saving for an early retirement is our common goal and a key facet of the FIRE ethos, we at Fire and Lifestyle don’t believe in being so frugal that you miss out on life now — that’s not the point!
Of course, this doesn’t mean we suggest frivolous spending for uninhibited indulgence either.
The answer in our opinion comes down to a balance between the two — and that balance is achieved through mindful spending and lifestyle design.
Living on Autopilot
Sometimes we’re guilty of living on autopilot — not truly thinking through our decisions, but rather doing them out of habit, or because it’s what society has shaped us into doing. Perhaps it’s buying expensive but time-saving products at the supermarket because it’s easier and has become your routine. It could be still paying for a gym or Netflix subscription that you haven’t even used in months. These are examples of mindless spending on autopilot.
Bigger examples might be going on a holiday to Tahiti because you feel like a beach holiday, without considering more cost-effective alternatives that may still achieve the desired outcome — like a local beach holiday, or one to a cheaper overseas destination.
What Is Mindful Spending?
Mindful spending involves valuing every dollar you spend and considering the alternatives and opportunity cost of each purchasing decision. The opportunity cost is the next best thing you gave up when spending that money.
When you don’t cancel that unused gym membership, think of the things you could have done with that money instead — that’s a pretty obvious example of mindless spending. But what about the less obvious examples?
Take the beach holiday. What really is the goal? It might not be to go to Tahiti specifically — it’s to have a relaxing beach holiday. If you’ve already reached FIRE and you really want to go to Tahiti, good on you, go for it! But if you haven’t yet reached your FIRE number, perhaps there’s a better alternative.
If the goal is simply to relax on a nice beach, why not pick a cheaper Asian destination that’s likely to be two to four times cheaper than Tahiti? Or do you even need to go overseas at all? Would a trip somewhere beautiful in your own country — the Coromandel for the Kiwis or Sunshine Coast for Australians — potentially be enough? This is mindful spending.
A holiday to Tahiti for a family of four for ten days might cost $20,000. A holiday to Bali might cost $10,000. You still get a beach holiday and have an additional $10,000 to spend on whatever you like, or to add to your portfolio. That sounds like a big win. And these wins can be made across many spending decisions we make on a daily basis, large and small.
The Subscription Trap
Before we get to the big-ticket items, let’s consider the quiet killer of financial progress: subscriptions and recurring costs.
The issue with subscriptions is that they’re designed to be forgotten and invisible. You sign up once, the money leaves your account automatically each month, and you stop noticing it. A streaming service here, a fitness app there, a cloud storage plan you set up three years ago — individually they seem trivial. Collectively they can add up to hundreds of dollars a month spent on things you barely use.
The fix is simple: do a subscription audit. Go through your bank statements and check every recurring charge. For each one, ask yourself — did I use this last month? Does it add genuine value to my life? Cancel anything that doesn’t pass that test. It takes an hour and could free up $100–$200 a month or more, money that compounds significantly over time when invested.
Big Ticket Examples
Boats
Boats. Stands for “Bring On Another Thousand.” Boats are both lots of fun and notoriously expensive. There’s a saying that the second happiest day of a person’s life is the day they buy their boat — and the happiest day is the day they sell it.
Studies have shown Kiwis tend to use their boats only a handful of times over the summer on average. Buying one means the lost opportunity to have that money invested and growing. There’s storage, depreciation, maintenance, running costs, and insurance. It all adds up to a relatively expensive hourly rate for something sitting in the driveway most of the year.
So what’s the mindful alternative? Why not hire one when you need it? You don’t have money tied up in a depreciating asset. You don’t need to store or maintain it. You can even hire different boats specifically for different purposes like fishing or skiing. Unless you’re a very high user, you’re very likely to come out much better off financially.
Now, some people are avid boaties and find genuine joy in owning their own boat — and if that’s you, great. Just make sure it’s a mindful decision, having considered the opportunity cost. Perhaps hiring a boat a few times a year and using the money saved to go skiing or pursue another hobby might actually deliver more enjoyment overall.
Baches
The memories created in a family bach may be absolutely priceless. If you can easily afford one and it’s what gives you satisfaction in life, by all means live that life. But if a bach is an achievable stretch, it’s worth asking: what are you really hoping to achieve?
Family memories at a beautiful destination? Would hiring a bach — saving thousands of dollars per year — be a workable alternative that delivers the same outcome?
Let’s look at some numbers. Say the bach costs $500,000. That’s half a million dollars you could have invested instead. At a 10% annual return, that’s $50,000 per year in returns — without touching the capital.
With $50,000 in annual investment returns, you could rent a very flash bach for two weeks and still have $30,000–$35,000 left over to invest or spend elsewhere. Alternatively, that same $50,000 could fund a stunning family holiday each year to a different destination — more variety, less maintenance, no rates bill. Or perhaps you could use the $50,000 return to buy a caravan and still create those great family memories, while freeing up future returns for even more experiences.
Sure, it’s a little more complicated than this — there are options to Airbnb the bach and potential long-term capital gains to consider — but the core concept still applies. There may be cheaper ways to achieve the same goal, enabling you to invest more, live more, and enjoy more.
Housing
Do you really need a big, flash house in a premium area? Or would a comfortable house in a more modest area achieve the same goal — an enjoyable, safe place to live — while freeing up hundreds of thousands of dollars to invest or spend on experiences?
Cars
Do you really need that brand new car? Or would one with 10,000km on the clock at a significantly reduced price do just as well?
The Smaller Daily Decisions
These were the high-level examples. But there are smaller daily decisions too, and they add up more than people realise.
Do you really need to spend $300 taking the family to an expensive restaurant, when a great cheap and cheerful local place would still give you a fun family night out for half the price? Do you need to spend $60 at a café on coffee and cake, when a picnic in the gardens with homemade coffee and store-bought cake could be just as enjoyable for a fraction of the cost? Would you rather see a movie at the theatre once a month, or put that money toward a Netflix subscription that covers the whole family? Do you really need to buy expensive out-of-season vegetables, when in-season produce is fresher, cheaper, and better for you?
Every financial decision you make is worth considering. It might be a quick mental check for smaller purchases and a longer conversation for bigger ones — but the important thing is to think, and to spend mindfully on things that will genuinely bring you value.
The Bottom Line
Mindful spending isn’t about deprivation. It’s about intentionality. It’s about making sure every dollar you spend is working for you — either buying genuine enjoyment and value today, or building the portfolio that funds your freedom tomorrow.
The FIRE journey doesn’t require you to stop living. It just asks you to stop spending on autopilot. Make conscious choices, consider the alternatives, and you might be surprised how much better your life gets — both now and in the future.
Nothing in this post constitutes financial advice — this is general in nature. Please consult a qualified financial adviser licensed in your jurisdiction for advice specific to your situation.
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