What is FIRE?
Financial Independence, Retire Early
Enough saved, invested or coming in that work becomes a choice. Here's what that means, in plain English.
The four words
- Financial
- What you have, what you spend, and what comes in without a job.
- Independence
- Not needing a paycheck to cover your life. Work becomes a choice.
- Retire
- Stopping work, or stepping back. Many keep doing work they enjoy.
- Early
- Before the usual age. There's no single number: early is whenever you get there.
Who it's for
Everyone, at any age
You don't need a big salary or a fancy title.
Any paycheck
People get there on a regular salary, in the trades, running a business and in every profession.
Public servants
A pension can be a head start for firefighters, police, teachers and military. How pensions fit
In your 20s or 30s
Time is your biggest asset. Small, steady saving compounds for decades.
In your 40s, 50s or later
Want to stop before the usual age? You're planning your own FIRE, even if you've never used the word.
Words you'll hear
Four terms, explained
- Your FIRE numberWhat you'd need set aside for your money to cover your spending without a paycheck.Work out yours
- Coast FIRESaved enough that growth alone should cover a normal retirement later. Today's work only pays today's bills.Check if you can coast
- Lean FIRE and Fat FIRERetiring early on a smaller budget, or on a more comfortable one.Compare budgets
- The 4% ruleA well-known rule of thumb for how much people might draw from savings each year, and where it falls short.Where it came from
Meet a word you don't know? The FIRE glossary explains the terms you'll hear, from the Rule of 55 to a Roth conversion ladder. Got a question instead? Try the FAQ.
The bridge years
Stopping before 65 raises four questions
Medicare generally starts at 65 (Medicare.gov). Stop working before then, and a paycheck no longer answers these for you:
- How will I pay for health insurance until Medicare?
- Which accounts do I draw on, and in what order?
- When should I claim Social Security?
- What will Medicare cost once I get there?
What can derail it
Gambling, addiction, money secrets, scams, cutting corners and abuse can undo years of work fast.
What uFIRE isn't
We explain how FIRE works and share real stories. We don't tell you what to buy, and we don't sell insurance or investments.
Free calculator
When could you get there?
Two minutes, nothing saved or sent.