Financial Independence Retire Early (FIRE)
A financial strategy focused on aggressive saving and low expenses to reach a portfolio large enough to cover living expenses indefinitely without working.
Full definition
FIRE is the goal of accumulating enough invested assets (typically 25-33× annual expenses, based on a 3-4% safe withdrawal rate) that work becomes optional. Variants include Lean FIRE (minimalist annual spending), Fat FIRE (higher lifestyle), Coast FIRE (invested enough that compound growth alone gets you to full FIRE by retirement), and Barista FIRE (semi-retirement with part-time income covering some expenses). FIRE math relies heavily on compound-interest projections and disciplined expense tracking.
Used for
- retirement planning
- financial independence tracking
- long-horizon investment planning
Sources
Related SailsAndShore resources
Workbooks
- Retirement 401k Planning · $8.63
- Net Worth Investment Portfolio Tracker · $8.63
Free calculators
- Compound Interest Calculator — See what today's dollar becomes in 30 years.
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