What Is FIRE? Financial Independence, Retire Early Explained
A complete guide to the FIRE movement: FIRE number, savings rate, 4% rule, and Lean/Fat/Coast FIRE variations.
Free calculators — instant results, no signup required.
Key Takeaways
- 1FIRE number = annual expenses × 25 using the 4% safe withdrawal rate.
- 2Savings rate matters more than investment returns in your first decade.
- 3Lean FIRE targets minimal expenses; Fat FIRE allows a comfortable lifestyle.
- 4Coast FIRE means investments will grow to your target without new contributions.
FIRE — Financial Independence, Retire Early — is built on one idea: save aggressively, invest efficiently, and reach a portfolio that covers living expenses without traditional employment.
Run your numbers in our FIRE calculator to see years to financial independence at your current savings rate.
Your FIRE Number
FIRE number = annual expenses × 25. If you spend $40,000 per year, you need $1,000,000 invested. Lower expenses mean a lower target.
Conservative planners use 28–33× expenses (3–3.5% withdrawal). Compare with how much you need to retire for traditional retirement planning.
Savings Rate: The Real Lever
Your savings rate — percentage of income saved — matters more than returns early on. Going from 20% to 40% can cut your FIRE timeline in half.
Track spending for 90 days. Most people find $300–$800/month that can redirect to investments. Use our budget calculator to find your rate.
FIRE Variations
Lean FIRE targets $25k–$40k/year. Fat FIRE allows $80k+/year. Barista FIRE uses part-time work for basics while investments grow.
Design a plan that matches your values, then stress-test with lower returns and higher inflation impact.
Continue Reading
Ready to run your own numbers?
Explore All Calculators