FIRE (Financial Independence, Retire Early)
Definition
A movement focused on saving and investing aggressively to reach financial independence as early as possible — potentially in your 30s or 40s. The idea is to build enough wealth that you can live off investment returns without working. It requires discipline but is mathematically possible.
Why It Matters
FIRE reframes your relationship with money and work. Even if you don't aim to retire at 35, the framework helps you think about your financial independence number and what it takes to reach it. It's less about not working and more about having the choice.
Example
If you spend $40,000 yearly and invest enough to generate 4% annual returns, you need ~$1 million ($40,000 ÷ 0.04). Earn $80k, spend $40k, save $40k for 20 years at 7% returns and you'd reach it.