Definition
A movement built on high savings rates and index investing, aiming for a portfolio of roughly 25 times annual spending so work becomes optional decades early. Variants include Lean, Fat, Coast, and Barista FIRE.
Why it matters
Even if retiring at 40 is not the goal, FIRE's math clarifies every money decision: spending sets the target, savings rate sets the date. The framework turns vague ambition into a timeline.
Example
A couple spending $60,000 a year targets $1.5 million. Saving half of their income, the years-to-target math puts work-optional status roughly 17 years away, regardless of what salaries do in between.
Put it into practice
Related terms
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