The FIRE Movement: Financial Independence, Retire Early

The FIRE movement has exploded in popularity. But what exactly is it, and is it realistic?

What Is FIRE?

FIRE stands for Financial Independence, Retire Early. It's a lifestyle movement focused on saving and investing aggressively (typically 50-70% of income) to achieve financial freedom in 10-15 years instead of 30-40.

Types of FIRE

• Lean FIRE: Extremely frugal living with minimal expenses ($25,000-40,000/year)
• Regular FIRE: Moderate expenses ($40,000-60,000/year), typical 4% rule
• Fat FIRE: Higher expenses ($80,000+/year), requires larger nest egg
• Barista FIRE: Part-time work to cover expenses while portfolio grows
• Coast FIRE: Save aggressively early, then let compounding do the work

How Much Do You Need?

Using the 4% rule: Multiply your target annual spending by 25. For $40,000/year → $1,000,000.

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