Last updated: January 19, 2026
FIRE stands for Financial Independence, Retire Early. It's a lifestyle movement focused on extreme saving and investing to achieve early retirement.
The core principle is accumulating enough investments (typically 25x annual expenses) so that withdrawal income can cover living costs indefinitely.
FIRE strategies include "Lean FIRE" (frugal living), "Fat FIRE" (higher spending), and "Barista FIRE" (part-time work supplement).
Understanding fire helps you make better investment decisions and plan for taxes. Use our fire calculator to see how it applies to your situation.
FIRE stands for Financial Independence, Retire Early. It encourages aggressive saving (often 50% or more of income) so you can stop working at 30, 40, or 50.
The '25x Rule' is the standard: multiply your expected annual expenses by 25. If you spend $40,000/year, you need $1 million invested.
Lean FIRE is retiring on a minimal, frugal budget (e.g., <$40k/year). Fat FIRE is retiring with a luxurious lifestyle (e.g., >$100k/year expenses).
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