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Financial Independence, Retire Early. A movement focused on aggressive saving and investing to retire decades ahead of schedule.
Why It Matters
The FIRE movement shows that retirement isn't about age - it's about having enough invested to live off your portfolio. The core idea: save 50-70% of your income, invest aggressively, and reach financial independence in 10-15 years instead of 40. Even if you don't pursue extreme early retirement, FIRE principles can help you build financial freedom faster.
Key Points
- The 25x rule: you need roughly 25 times your annual expenses invested to retire (e.g., $40K/year spending = $1M needed)
- Variants include LeanFIRE (frugal lifestyle), FatFIRE (maintaining a higher standard of living), and BaristaFIRE (part-time work covers some expenses)
- The 4% rule suggests you can withdraw 4% of your portfolio yearly with low risk of running out over 30 years
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Common Questions
Financial Independence, Retire Early. A movement focused on aggressive saving and investing to retire decades ahead of schedule. The FIRE movement shows that retirement isn't about age - it's about having enough invested to live off your portfolio. The core idea: save 50-70% of your income, invest aggressively, and reach financial independence in 10-15 years instead of 40.
The FIRE movement shows that retirement isn't about age - it's about having enough invested to live off your portfolio. The core idea: save 50-70% of your income, invest aggressively, and reach financial independence in 10-15 years instead of 40. Even if you don't pursue extreme early retirement, FIRE principles can help you build financial freedom faster.
The 25x rule: you need roughly 25 times your annual expenses invested to retire (e.g., $40K/year spending = $1M needed)
Variants include LeanFIRE (frugal lifestyle), FatFIRE (maintaining a higher standard of living), and BaristaFIRE (part-time work covers some expenses)
The 4% rule suggests you can withdraw 4% of your portfolio yearly with low risk of running out over 30 years