🔥 FIRE (Financial Independence; Retire Early)

According to Wikipedia.org [1]:

The FIRE (Financial Independence, Retire Early) movement is a lifestyle movement with the goal of gaining financial independence and retiring early.

The main ideas behind the FIRE movement originate from the 1992 best-selling book Your Money or Your Life written by Vicki Robin and Joe Dominguez


  1. Save $ (by always searching for ways to cut expenses).
  2. Avoid "lifestyle creep" even if your income goes up.
  3. Figure out the total annual amount of money you would need in retirement and divide that by .04. The result is your target number.
  4. Once you have that target number in diversified investments, you can retire!


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%)[2] 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.



  1. "FIRE Movement." Wikipedia, Wikimedia Foundation, 1 Feb. 2023, en.wikipedia.org/wiki/FIRE_movement. Accessed 10 Mar. 2023. ↩︎

  2. 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. ↩︎