FIRE — Financial Independence, Retire Early
FIRE followers save 50-70% of income to retire in their 30s or 40s instead of 60s. Here is how it works.
Types of FIRE
Lean FIRE: Minimal lifestyle. Need 25x lean expenses ($25-30K/year = $625-750K corpus).
Regular FIRE: Normal lifestyle. 25x average expenses ($40-50K/year = $1-1.25M).
Fat FIRE: Comfortable lifestyle. 25x higher expenses ($75-100K/year = $1.875-2.5M).
How to Calculate Your FIRE Number
Annual expenses × 25 = FIRE number. Earn $100K, save 50% ($50K). Expenses = $50K/year. FIRE number = $1.25M. At 10% returns, takes ~14 years.
FIRE Savings Rate vs Years to Retire
| Savings Rate | Years to FIRE |
|---|---|
| 20% | 37 years |
| 30% | 28 years |
| 50% | 17 years |
| 60% | 12 years |
| 70% | 8.5 years |