FIRE stands for financial independence, retire early. The movement's core number is simple: multiply your yearly spending by 25. Want $40,000 a year? The target is $1,000,000. Want $60,000? It is $1,500,000.
The 25x rule is the flip side of the 4% rule: researchers tested how much a retiree could withdraw each year from a stock-and-bond portfolio without running dry across decades of historical US market data, and 4% a year held up well. Withdrawing 4% means your money needs to be 25 times your spending.
The years-to-FIRE answer depends far more on your savings rate than on picking the perfect investment. Someone investing $2,000 a month from a $60,000 start reaches $1,000,000 in about 17 years at 7%. Double the contribution to $4,000 and the wait drops to about 12. This is why FIRE people obsess over the gap between earning and spending rather than over stock tips.
Lean FIRE means the same math on a deliberately small budget. Barista FIRE means the portfolio covers most of life while a light job covers the rest. Coast FIRE is the point where your balance is big enough to finish growing on its own - our coast FIRE calculator finds your exact date.
The 4% rule comes from history, and history does not repeat on schedule. Plan with a margin: a slightly lower withdrawal rate, a slightly bigger number, or a plan to trim spending in bad market years. And remember the number is based on your real spending, so the fastest way to shrink it is usually a cheaper life you actually enjoy, not a raise.
Estimates and rules of thumb, not financial advice.
Figured Out