Personal Finance

FIRE (Financial Independence, Retire Early)

Saving aggressively to reach the point where investments can cover your living costs.

FIRE is the goal of building enough invested wealth that you no longer need a paycheck. The common target is 25 times your annual spending (the flip side of a 4% withdrawal rate). The biggest lever is your savings rate, not your investment return. Find your number with our free calculator.

For example

If you spend $40,000 a year, your FIRE number is about $1,000,000 ($40,000 x 25).

Related terms

Budget (50/30/20)Compound InterestNet Worth

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