What is FIRE?
FIRE stands for Financial Independence, Retire Early — a movement centered on high savings rates and long-term investing to retire decades earlier than the traditional age.
The movement
FIRE grew from books like Your Money or Your Life and Early Retirement Extreme. Its followers save 40–70% of their income, invest broadly in low-cost index funds, and aim to reach financial independence in 10–20 years instead of 40+.
The formula
Time to FIRE is driven almost entirely by savings rate. A 50% savings rate implies roughly 17 years to FI; 70% implies about 8.5 years. Income matters, but the gap between income and spending matters more.
Variants
FIRE is a spectrum: Lean FIRE (minimalist), Fat FIRE (higher spending), Coast FIRE (stop contributing early), and Barista FIRE (partial work income). Each fits a different lifestyle and risk tolerance.