What Does FILE Mean?
When most people think about retirement, they picture themselves older, no longer working, and living off savings, investments, and Social Security. But what if traditional retirement doesn’t appeal to you? If the idea of stopping work altogether doesn’t excite you, there’s another option — and it’s called FILE. Let’s break it down and see how this approach could work for you.
How Does FILE Work?
FILE stands for “Financial Independence, Live Early,” and it’s a twist on the popular FIRE (Financial Independence, Retire Early) movement. While FIRE focuses on scrimping and saving to retire as early as possible, FILE is a bit different. Instead of quitting work altogether at a young age, FILErs achieve financial independence and use their newfound freedom to live life on their own terms, often continuing to work, but only in ways that bring them joy and fulfillment.
In short, FILE allows you to leave behind the traditional “retirement” mindset. Rather than the idea of working until age 65 and then stopping entirely, FILE is more like a dimmer switch on work. You reduce the hours you work or switch to work that suits your passions and lifestyle. You may have to cut back on some luxuries, but the goal is to create a life that’s tailored to your desires.
FILE in Action
A great example of FILE in action comes from Ryan A., a Childfree individual featured in Dr. Jay’s book Portraits of Childfree Wealth®. Ryan initially retired early but found he still craved the stimulation of work — just on his own terms. So, he started his own marketing company, now working no more than 25 hours a week, never before 10:00 am, and never on Fridays.
What makes it even better? Ryan has the freedom to travel and work from anywhere with his wife and their dog, booking remote rental stays and working on projects that excite him. That’s the FILE life — creating a career that works for you, not the other way around. Whether it’s starting your own business or finding a flexible part-time job, FILE gives you the freedom to work less, work differently, and work on your own terms.
How Can You Plan for FILE?
Just like FIRE or traditional retirement, FILE requires planning — and it’s a good idea to involve a CERTIFIED FINANCIAL PLANNER™. However, FILE doesn’t focus on amassing wealth for the sake of leaving a legacy. It’s more about enjoying life and investing in yourself. If your goal is to leave a large inheritance or fund a specific cause, FILE might not be the best fit for you. Instead, FILE is closer to the “die with zero” approach to money — spending on experiences, passions, and what brings you joy.
Since FILE is all about breaking away from the traditional “LifeScript” — the societal path that says you must go to school, get a job, marry, have kids, and retire traditionally — it may appeal to those who are already Childfree. If you’ve already stepped off the LifeScript, why not create a lifestyle that works for you, too?
When planning for FILE, key considerations include long-term care and Social Security. It’s essential to invest in long-term care insurance in case you reach a point where you’re unable to work or need assistance with daily activities. If you plan to work past the traditional retirement age, it’s a good idea to delay taking Social Security until age 70, which increases your future payments.
You may also want to set aside retirement funds if you’re risk-averse and want a safety net, just in case. Ultimately, FILE is about being intentional with your life choices, and that means planning ahead with the help of a CFP®, accountant, and other financial experts.