Written by Jonathan Miller
FIRE stands for "Financial Independence, Retire Early." The idea is to save aggressively so you can quit your job way before 65.
The FIRE community uses the "4% rule" - if you can live on 4% of your investments annually, you can theoretically retire. Want to spend $40,000/year? You need $1,000,000 invested ($1M × 4% = $40,000).
Annual Expenses × 25 = Your FIRE Number
If you need $50,000/year, your FIRE number is $1,250,000.
Save 50-70% of your income (yes, really). This means living frugally - roommates, used cars, home-cooked meals, free entertainment.
Side hustles, career changes, aggressive salary negotiation. You can't save 70% on minimum wage.
Everything saved goes into index funds, real estate, or businesses.
Move to lower cost-of-living areas, downsize, eliminate subscriptions.
FIRE isn't for everyone. It requires sacrifice, discipline, and often a decent income to start. But even if you don't want to retire at 35, FIRE principles (save more, invest consistently, minimize waste) help anyone achieve financial independence faster.
Calculate your path to early retirement with our Retirement Calculator!