If you've been navigating personal finance post-COVID, you've probably heard "FIRE" being shouted from the rooftops. Yes – Financial Independence, Retire Early (FIRE) isn’t only for a niche community anymore. Given today’s economy, it’s a lifestyle choice that's catching on like…well, wildfire.

In this episode, we are stoking those flames with Dave Gow, the brains behind the popular blog Strong Money Australia . After 10 years of operating a warehouse forklift, Dave hung up the keys at 28 to embrace freedom and flexibility. He then started the blog to offer his insights and lessons so that the average Australian can do the same.

Now, he joins us to share personal thoughts and realisations about his FIRE journey. However, while Dave’s anecdotes and strategies are incredibly impressive, please note they are not personal financial advice. His timeline, goals, and tolerance for risk are different from yours. So, take only what you need for inspiration. And always, always do your due diligence (or get professional guidance from financial advisers).

Before we go further, you should know this summary is slightly more comprehensive than usual. To help you find what you need, here’s a list of the key points:

• What is FIRE?
• How Dave decided how much he needed to retire
• Shares/ETFs versus property for Dave’s FIRE journey
• There’s always risk in any investment
• Why Dave opted for a dollar-cost averaging strategy
• Re-thinking frugality
• Die with zero
• Does FIRE work with kids?
• Focus on your lane

What is FIRE?

At its core, FIRE is about saving and investing as much as we can until you become work-optional. For FIRE-seekers, traditional retirement ages at 65 or 70 are no longer a finish line. Or, in other words, you’re gaining freedom sooner rather than later.

Of course, there’s no rulebook for what this “freedom” should look like. We all have our motivations for doing the hard work now.

For Dave, retirement initially meant taking a few months off to do absolutely nothing. Then, he found his passion in blogging and podcasting. More importantly, he enjoys having a lot of free time for hobbies and volunteer work.

Obviously, your vision may not look like Dave’s. But, fundamentally, the principle remains the same: to wake up each day with the freedom to choose what you want to do, rather than what you have to do.

So, how do you get there? In Dave's words, achieving FIRE hinges on rethinking how you view money and work. It's not a get-rich-quick scheme but a deliberate, disciplined long-term approach to growing your wealth. This means making saving and spending decisions based on what you truly value in life.

How Dave decided how much he needed to retire

This is a question that pops up a lot around the community, and rightly so. Your FIRE number is probably the next incredibly important thing you need to nail down (after finding your purpose). Without it, you’re just saving and investing aimlessly, which can feel discouraging and overwhelming.

But when you have a FIRE number in sight, every step closer feels incredibly motivating. It gives you something to hope for and keeps you inspired along the way.

So, how much do you need to retire?

Well, Dave found his answer by reading up on FIRE. He learned that a good target is typically 20 to 25 times your annual expenses in shares. In his case, though, he was investing solely in Australian shares, which are often popular for their historically high dividend yields and franking credits. This meant he didn’t need as much money saved up because those dividends tended to cover a lot of his costs. So, he aimed for the lower end of the range – closer to 20 times his annual spending.

But, remember, what works for Dave – or anyone else – is likely going to look different for you. Each of us will land on our own FIRE number, shaped by our goals, lifestyle choices, and perhaps family situation. Dave’s risk appetite also allowed him to accept the reality that his Australian shares may not pay dividends. For others, this prospect may feel terrifying.

So, it’s important that, just like Dave, you do your own research and adapt general advice to fit your personal circumstances.

Your purpose for pursuing FIRE is unique, so make sure your plan is too.

Shares/ETFs versus property for Dave’s FIRE journey

Investing in property often starts from a place of comfort and familiarity. We grow up in homes and hear stories of family and friends buying houses. And, unlike shares, property is tangible and its value doesn’t historically seem to swing as wildly.

Naturally, all of these attributes make property seem like a safe first step for anyone pursuing FIRE.

However, while property can be an appealing entry point into investing, it's not without its nuances. At least in Dave’s experience, he realised that, even if the mortgage is paid off, the actual rent income wasn’t as impressive as he anticipated.

Now, of course, returns from property investing can vary significantly from person to person. It all depends on many factors like market situation, location, and property type.

Even so, properties require management, maintenance, and dealing with tenants or emergency costs. Dave’s story about the returns might not apply universally. But, these are factors that every property owner may face.

Point being, the risk and returns of your property investing journey can be quite different from what other property folks experience.

So, for Dave, the simplicity of exchange-traded funds (ETFs) became increasingly appealing. An ETF is a basket of shares or assets that tracks the performance of an entire index or a specific sector. Hence, if the businesses profit, so do you – either through dividends or capital growth. This depends on the ETF, so always read the most recent prospectus and do your research.

As Tash puts it, receiving dividends is straightforward and requires less effort. You invest in shares, and if they perform well, the dividends just show up in your account.

Moreover, the entry point for investing in ETFs is significantly lower than in property. You don’t need a substantial amount of capital to begin. You can start small and gradually build your portfolio over time.

Hence, for Dave. who’s seeking simplicity and affordability, investing in ETFs and receiving dividends align perfectly with his personal financial goals. And that’s when he decided to pivot to ETFs later in his journey.

There’s always risk in any investment

Sure, if Dave had to do it all over again, he'd go for shares over property. However, that doen't mean one is inherently better than the other. In fact, he’s quick to clarify that a lot of his financial progress didn’t come from either investment asset. Instead, he achieved FIRE largely through consistent savings and moderate investment returns.

This brings us to why it’s important to talk about risks. There’s no single asset that delivers high returns without an equal level of risk. All popular types of investments come with its own set of pros and cons – shares and properties included.

On one hand, shares give us the ease of “set and forget,” hopefully letting us watch our portfolios grow with minimal fuss. But this convenience comes with volatility. Markets have their seasons, and prices can swing wildly. You need to be ready for the bumpy ride if you’re investing during a downturn .

In contrast, property offers leverage but often demands a lot more effort. Tenants, repairs, and emergency costs can all chip away at your returns. Sure, leverage means the gains can be significant when the market's hot. But a slow period could leave you with a property that’s eating into your savings.

Like in Dave’s case, he did okay with property, but the gains weren't mind-blowing. Sometimes the costs were so high he was losing money each month. In Perth, property prices were stuck for a decade. And, without a guarantee of rising values, leverage didn’t pay off like he’d hoped.

Ultimately, the decision between investing in shares or property should hinge on what kind of investor you are. Think about your goals, your preference for risk, and how much time you’re willing to invest. Just as Dave learned, the best investment strategy is one that reflects your unique situation and goals.

Why Dave opted for dollar-cost averaging (DCA) strategy

Now, you may be thinking: “How exactly did Dave shift from property to ETFs?”

Dave used to own seven properties. But, as we mentioned, he found that managing them all was keeping him from his dream of retiring early. So, he made a change. He started selling off his properties slowly. Every time he sold one, he didn’t just throw all that money into ETFs right away.

Instead, Dave took a more gradual approach called dollar-cost averaging (DCA). He liked this investing strategy for three reasons.

First, DCA felt psychologically safer and more comfortable for him. Rather than dumping all his money into the market at once, DCA involved him investing it bit by bit. This way, he didn’t have to worry about bad timing or market downturns. Over time, DCA lowered his average spend on ETFs and made investing less stressful for him.

Second, this strategy gave Dave and his family the breathing room they needed. They used some of the money from the property sales to cover everyday expenses while they built up their investments in stocks. This meant they didn’t have to worry about money in the short term while they grew their wealth for the future.

Third, Dave prefers to drip his money into ETFs over time rather than waiting for the next lump sum to invest again. Now, to be sure, this is not to say that DCA beats lump sum investing every time (Read: DCA vs lump sum investing ). But, if you can’t afford a lump sum, DCA ensures that investing becomes a habit and that you’ve already bought in every time the market goes up.

Re-thinking frugality

When we talk about FIRE, it's easy to conjure up images of extreme frugality, like living off beans and foregoing all life's pleasures. But let's clear the air: achieving FIRE doesn't require a miserable existence. Far from it.

First off, living on beans and giving up all life's pleasures isn't just unrealistic. It's unnecessary. The idea that you have to choose between having fun now or saving for the future is a false dichotomy that too many of us were led to believe.

The truth is if the pursuit of Financial Independence makes you miserable, you're probably doing it wrong. There's actually a whole spectrum of choices, even if you’re living frugally.

To give you an idea, according to Dave, you don’t need to save 80% of your pay to retire earlier than the norm. Even saving 20% can get you there. This still allows you to travel, see an AFL match, and treat yourself to a Michelin-star meal (just not every night). The key is moderation, not deprivation.

The other side of the same coin is that frugality is re-prioritising rather than renouncing.

When we choose to live frugally, we’re not saying goodbye to our desires forever. We’re simply choosing to focus on building wealth first. But, once you've built a robust financial base, the world is your oyster. You can pivot, splurge, and adjust your spending without jeopardising your long-term goals.

Die with zero

For some folks, though, reaching Financial Independence is just the first step. The real challenge often comes next: learning to spend what they’ve worked so hard to save. They have been in saving mode for so long that spending their savings feels almost wrong.

We get it, though. Many of us started saving from a place of fear. We wanted to feel safe and prepared for the future. But, despite all the saving we do, that fear of not having enough can stick around. Our savings, meant to give us calm and enjoyment, turns into something we’re afraid to use.

Take Tash’s grandfather, for instance. He’s 86 and still runs his business full-time. He has enough money to retire comfortably, but lives frugally. He doesn’t waste anything, tracks every dollar, and avoids spending. His wife, on the other hand, wants to travel and enjoy their money. This causes tension because he values saving, while she wants to enjoy the rest of their years.

Sure, there are other folks that genuinely get a kick out of seeing their savings grow. Others are saving to leave wealth to their kids (or charities) – and that’s totally fine.

But, if you're retired with plenty of funds for yourself, is hoarding really the best use of money? After all, there’s really no point in being the richest person in the cemetery.

This is what 'Die with Zero' gets at. The idea is to spend your wealth thoughtfully at the best times in your life, rather than hoarding it until the end. It teaches you to spend on enriching experiences while you’re still healthy and able to appreciate them.

The book raises some eyebrows, but it brings up some valid points worth considering. So, if you’re on the FIRE path, prepare for this mental shift early. As you near your financial goals, think about how you’ll enjoy your retirement. Visualise your life beyond just saving, and consider what a meaningful life looks like beyond work.

Does FIRE work with kids?

If you noticed, the topic of managing money while raising kids rarely makes the rounds in typical finance advice. Yes, it’s strange, considering that having kids does change FIRE in big ways.

To be fair, it’s a topic that’s difficult to package as “general advice”. Each family is different, and there simply are too many things to consider. Even so, that doesn’t stop us from sharing our POV.

First, having kids shifts your entire financial strategy. Your priorities and decision-making process changes completely. You now have to think about bigger homes in better school districts, safer cars, and yes, the super expensive childcare in Australia.

At first glance, this might seem like a setback on the path to Financial Independence. You’re not entirely wrong to think: "Without kids and all these extra expenses, I’d be retired by now!"/ And, technically, you’d be right. But, that’s just one way to look at it.

The other perspective? FIRE can still remain a priority, but it won’t be the only priority.

Like all things money-related, this one starts with a big mindset shift. Of course, retiring early is very much on the table even after having kids. But, this time, it’s about knowing where you can make compromises…and where you absolutely shouldn’t.

It’s never going to be a ruthlessly logical decision because, ultimately, these decisions are emotional. You’re investing in your kids’ security and happiness (and what that means is going to be different for each family).

With that said, FIRE will usually have to wait a little longer. And that’s not a bad scenario at all!

The alternative is never discovering FIRE and working indefinitely without knowing there’s another way. Just the possibility of achieving Financial Independence before you turn 60 or 70 is already a win worth celebrating.

So, while you might wish things were moving faster, the process itself – saving and investing – is already empowering. It gives you choices and flexibility that go beyond mere numbers, like taking longer parental leave or working part-time to be with your kids.

Focus on your lane

Now, we all love a good story like Dave’s. We seek the details for inspiration and motivation. Equally so, it often leads to frustration. Or, worse, you start second-guessing this path when you see that others seem further along.

Needless to say, there will always be people saving/investing more and cruising towards their goals. It’s futile to think we should all be progressing at the same pace. What you don’t see is that everyone starts from different incomes, costs, responsibilities and luck.

So, what should you do? It’s simple: focus on your lane. It's fantastic to get inspired by others. But, it’s more important to come back to what you can actually do in your own life. What steps can you take today to better your finances? Identify those things and tackle them one step at a time.

And if you’re just starting, remember this: everyone wishes they began earlier. But, dwelling on the past doesn’t move the needle. Action does. Start where you are, use what you have, and do what you can. And, as we always like to say, the best time to start was yesterday. The next best time is now.

Final thoughts

Now, if you need a bit more structured guide, Dave’s book is there for you too. It’s called Strong Money Australia , and it distils over five years of blogging into a single A to Z resource. It’s designed to be the only guide you’ll need to achieve FIRE in Australia.

For those who want to hear more of his insights and anecdotes, Dave is also behind the mic on the Aussie FIRE podcast. He has collaborated with Hayden Smith (Pearler’s co-founder) to take you through the whole spectrum of achieving FIRE. The podcast goes out every fortnight, and it’s available on popular streaming platforms.

If this episode sparked something in you, give it a five-star rating, drop a review, or better yet, share it with a friend. And if you're just starting out, the first ten episodes will get the financial gears turning. Follow us at @getrichslowclub and catch our personal updates at @tashinvest or @anakresina .

Happy investing!

Tash and Ana