According to Wikipedia.org :
The FIRE (Financial Independence, Retire Early) movement is a lifestyle movement with the goal of gaining financial independence and retiring early.
If my household's annual expenses to support our current lifestyle are (just picking a round number for simplicity) is 100,000, we then divide that by 0.04 (4%) and the result is $2.5 million. That's the target number. Once my household's net worth is 2.5M then we can retire. Of course, if you are willing to live on less in retirement than what you have now, you can reduce your target number eg if in retirement you can live on 35,000/y then the target number is 875k.
⚠ There is a lot of nuance and assumptions in the above, and I am not a financial advisor - so definitely do your own research and talk to people you trust.
"FIRE Movement." Wikipedia, Wikimedia Foundation, 1 Feb. 2023, en.wikipedia.org/wiki/FIRE_movement. Accessed 10 Mar. 2023. ↩︎
Mustache, Mr M. "The 4% Rule: The Easy Answer to “How Much Do I Need for Retirement?”." MrMoneyMustache, 29 May 2012, www.mrmoneymustache.com/2012/05/29/how-much-do-i-need-for-retirement/. Accessed 10 Mar. 2023. ↩︎