FIRE movement

Extracted Attributes

• Name

  FIRE movement

• Full Name

  Financial Independence, Retire Early

• Primary Goal

  Achieve financial independence and retire early

• Core Strategy

  Aggressive saving and investing, expense reduction

• Key Guideline

  4% rule (portfolio 25x annual expenses)

• Associated Book

  Your Money or Your Life

• Associated Concepts

  Lean FIRE, Fat FIRE, Barista FIRE, Coast FIRE

• Popularized Through

  Online communities (blogs, podcasts, forums)

• Typical Savings Rate

  50% to 75% of income

• Target Retirement Age

  Decades earlier than traditional 65-70

Timeline

• The book "Your Money or Your Life" by Joe Dominguez and Vicki Robin, which popularized the movement, was first published. (Source: web_search_results)

  1992-XX-XX

• The movement gained significant popularity among millennials. (Source: summary)

  2010s-XX-XX

• Discussed on the All-In Podcast as a societal trend among younger generations seeking alternatives to traditional career paths. (Source: related_documents)

  2024-XX-XX

FIRE movement

The Financial Independence, Retire Early (FIRE) movement is a personal finance approach that emphasizes high savings rates (far more than the standard 10–15% typically recommended by financial planners) and investment with the aim of achieving financial independence and potentially retiring earlier than the conventional retirement age. The movement gained popularity among millennials during the 2010s, particularly through online communities such as blogs, podcasts, and discussion forums. Individuals pursuing FIRE typically seek to reduce expenses and increase savings, investing the difference with the goal of eventually covering living costs through passive income. Some writers associated with the movement promote a simplified framework: spend less than one earns, invest the surplus, and avoid excessive debt. A commonly cited target within the FIRE community is the 4% rule suggested by William Bengen, which suggests that a retirement portfolio should equal at least 25 times estimated annual expenses to support long-term withdrawals. Other commentators, like economist Karsten Jeske have argued for more conservative withdrawal rates, such as 3.25–3.5%, particularly for those retiring decades before the traditional retirement age.

Web Search Results

• FIRE Movement: What to Know About Retiring Early

  01.28.2025 | Category: Retirement Planning Summary: The FIRE movement is a lifestyle strategy for achieving financial independence and early retirement through frugality, saving, and investing. [...] The FIRE movement, “Financial Independence, Retire Early,” is a lifestyle strategy for achieving financial freedom and retiring earlier than the traditional retirement age. The main idea is to save and invest a large portion of your income, often between 50% and 75%, by living frugally and minimizing expenses. [...] The FIRE movement offers an exciting possible path to financial independence and early retirement, giving you the freedom to live life on your terms. By focusing on aggressive saving, smart investing, and frugal living, it’s possible to break free from the traditional work cycle and pursue what truly matters to you. Whether you opt for Lean FIRE, Fat FIRE, Barista FIRE, or Coast FIRE, each approach provides a way to reach your financial goals based on your lifestyle and needs.

• What is FIRE? (Financial Independence Retire Early) - Equifax

  The FIRE movement is a wide-ranging set of financial practices designed to support retirement before the standard retirement age of 65 to 70. FIRE strategies typically combine aggressive savings and moderate- to high-yield investments. The FIRE method suggests that once you save and invest a certain amount of money — approximately 25 times your annual expenses — you'll be ready to leave the workplace behind. [...] Financial Independence, Retire Early (FIRE) is a lifestyle movement that offers an alternative to traditional retirement: leave your work life behind in your 50s, your 40s or even your 30s. But what does it take to retire decades earlier than most of your peers? You'll need to spend less, save more and be more thoughtful when it comes to investing. ## What is the FIRE movement? [...] The FIRE movement may not be right for every would-be retiree. Those considering FIRE should be prepared to make significant financial cutbacks and understand that, as with any investing process, success is not guaranteed. However, for some committed individuals, the FIRE movement may be a way to make early retirement a reality. Equifax Credit Monitoring ### Sign up for a credit monitoring & ID theft protection product today!

• What Is The FIRE Movement? - CNBC

  FIRE is a movement of people dedicated to extreme saving and investing, allowing them to quit full-time work sooner than they would with traditional retirement planning. But it comes with a cost — to achieve FIRE, you have to dedicate a huge amount of your income toward your retirement, which usually means cutting your spending down to the essentials. ## How does FIRE work? [...] Since at least the early 90s, adherents of the Financial Independence, Retire Early (FIRE) movement have sought to free themselves financially from the burden of a job before reaching traditional retirement age. At its most basic, FIRE requires you to embrace a frugal lifestyle and maximize your savings, so you can afford to retire sooner rather than later. But FIRE doesn't just mean cutting down on food delivery or streaming services. [...] ### Cons of the FIRE movement ## FAQs ### What is the FIRE movement? The Financial Independence, Retire Early (FIRE) movement focuses on heavily saving and investing early in life allowing you to quit full-time work sooner than you would traditionally. ### What is the rule of 25 for FIRE? The rule of 25 is a general rule of thumb that says you should save 25x your annual living costs to retire. ### How long does the average person live in retirement?

• FIRE Movement: Financial Independence, Retire Early

  FIRE stands for "Financial Independence, Retire Early." It's a financial movement that prioritizes intense budgeting, saving and investing to reach retirement age before the typical retirement ages of 65 to 70, allowing people to leave the workforce early and live their lives as they choose to. [...] While the origins of the acronym are unknown, the FIRE movement was popularized in the book "Your Money or Your Life" by Joe Dominguez and Vicki Robin, first published in 1992. The book details one's relationship with money to achieve financial independence and live a life that aligns with one's goals and values. Your Money or Your Life. Welcome to Your Money or Your Life | Life > Money . Accessed Sep 27, 2024. View all sources [...] .004Z%22%20fill%3D%22%23FFF7EA%22%2F%3E%3C%2Fg%3E%3Cpath%20stroke%3D%22%23000%22%20stroke-width%3D%22.453%22%20d%3D%22M.226.226h23.547v17.66H.226z%22%2F%3E%3Cdefs%3E%3CclipPath%20id%3D%22a%22%3E%3Cpath%20fill%3D%22%23fff%22%20d%3D%22M0%200h24v18.113H0z%22%2F%3E%3C%2FclipPath%3E%3C%2Fdefs%3E%3C%2Fsvg%3E

• Financial Independence, Retire Early (FIRE): How It Works

  ## What Is Financial Independence, Retire Early (FIRE)? Financial Independence, Retire Early (FIRE) is a movement of people devoted to a program of extreme savings and investment with the goal of retiring far earlier than traditional budgets and retirement plans would permit. [...] The Financial Independence, Retire Early (FIRE) movement offers an alternative approach to traditional retirement planning. Instead of aiming to retire at 65, many FIRE participants target an earlier retirement age. Others plan to stay in the workforce but hope to achieve financial independence, which means depending less on a regular paycheck from a full-time job. [...] The FIRE movement prioritizes greater financial independence through a program of extreme frugality and aggressive investment. FIRE devotees may hope to retire earlier than the conventional retirement age range of 65 to 70, or they may hope to gain greater financial independence. Those who want to retire early may plan to live solely off small withdrawals from their portfolios or they may incorporate part-time work into their strategy.

• Instance Of

  Q3533467

The FIRE (Financial Independence, Retire Early) movement is a lifestyle movement with the goal of gaining financial independence and retiring early. The model became particularly popular among millennials in the 2010s, gaining traction through online communities via information shared in blogs, podcasts, and online discussion forums. Those seeking to attain FIRE intentionally maximize their savings rate by finding ways to increase income and/or decrease expenses, along with aggressive investments that again increases their wealth and/or income. The objective is to accumulate assets until the resulting passive income provides enough money for living expenses throughout one's retirement years. Many proponents of the FIRE movement suggest the 4% rule as a rough withdrawal guideline, thus setting a goal of at least 25 times one's estimated annual living expenses. Upon reaching financial independence, paid work becomes optional, allowing for retirement from traditional work decades earlier than the standard retirement age.