FIRE basics guides
Learn the key concepts with worked examples, sources and links to calculators.
What this topic covers
FIRE stands for Financial Independence, Retire Early. The core idea is arithmetic: when your invested assets are large enough that a sustainable withdrawal covers your spending, work becomes optional. The most common shorthand is the 25x rule — multiply annual spending by 25 for a portfolio at a 4% initial withdrawal rate — but that number depends on returns, inflation, fees, taxes and how long the money must last.
Savings rate matters more than investment brilliance early on. Moving from saving 10% to 30% of income can cut years from a timeline, while the same portfolio with high fees quietly gives some of it back. Lean, Traditional, Fat, Barista and Coast FIRE are variations on the same trade-off: how much you spend, how long you work, and how much risk you accept.
Start with the FIRE calculator to see your number and your position, then use the Coast FIRE calculator if you want compounding to do more of the work.
Guides in this topic
FIRE retirement: a practical guide
A no-fluff guide to Financial Independence, Retire Early (FIRE) — from savings rate to safe withdrawal rates, with realistic numbers.
FIRE vs traditional retirement: key differences
FIRE aims for financial independence and optional work decades earlier. Traditional retirement focuses on stopping at a fixed age. Here's how they compare.
How to calculate your FIRE number
Your FIRE number is how much you need invested to retire. Here's how to calculate it, stress-test it, and avoid common mistakes.
What is Coast FIRE? (with a worked example)
Coast FIRE means you've saved enough that compound growth can cover the rest — so you can 'coast' to traditional retirement without saving more.