FIRE (Financial Independence, Retire Early)

FIRE stands for Financial Independence, Retire Early. The core idea is to deliberately build up enough wealth that the ongoing returns on that capital cover living costs on a lasting basis.

Once that point is reached, paid work is no longer strictly necessary to cover everyday expenses. Employment becomes a choice rather than an obligation. The path there usually rests on a high savings rate and a consistently invested portfolio.

FIRE is less a rigid formula than a movement with several variants, ranging from very frugal to more generous lifestyles. How much wealth an individual needs depends on the desired level of spending and the assumed rate of withdrawal from the capital.