The FIRE Movement

What is FIRE and how does it work?

The FIRE Movement

The FIRE Movement is a lifestyle choice with the end goal of financial independence and an optional early retirement. FIRE, an acronym standing for Financially Independent Retired Early, is based on two financial rules of thumb: The Rule of 25 and The 4% Rule.

Financial Independence

Often called FI (rhymes with hi), Financial Independence is achieved with your living expenses can be met by income generated from your investments. Basically, one if financially free when working for a paycheck is optional.

Retired Early

Not everyone should pursue an early retirement, but everyone should pursue financial independence. Many in the FIRE movement have no intention of giving up work once they are FI.

People of The FIRE Movement

Check out what others are saying about the FIRE movement:

What is Financial Independence, from Mr. FI Guy
Starting a FIRE, from Caught on FIRE
What FIRE Means to me, from Enchumbao
Light Yourself on FIRE This Year, from Funding Happy
What is Financial Freedom and Why You Should Want It, from Smart Money Manners
FIRE Fundamentals, from Partners in FIRE
What is FIRE, from Your Money Blueprint
FIRE By Any Other Name, from She Picks Up Pennies
What Do You Mean, "On FIRE"?, from Physician on FIRE
The Financial Community is on FIRE, from Little Brother Life Coach
The Five Personas of FIRE, by Prairie FIRE Canada

Additional Reading

Keep scrolling to check out some of the following articles related to Financial Independence and Early Retirement.

Why Right Now May Be the Time to Join the FIRE Movement

March 26, 2020 By Jackie 1 Comment

The FIRE movement has its share of haters.

And honestly, I don’t get it. (Much.)

Sure, the biggest objections are understandable:

People don’t want to retire early and sit on their rear doing nothing.
It can seem out of reach for many people.
People don’t want to live waaaaay below their means and never do anything fun.

So let’s tackle those things one at a time. Doing so will help explain why right this very moment — with all the economic upheaval and ongoing problems — might be the exact right time to join the FIRE movement. [Read more…] about Why Right Now May Be the Time to Join the FIRE Movement

Clueless at 40 to Financially Independent by 50

February 2, 2020 By EFI Leave a Comment

Can you go from clueless at 40 to financially independent in less than 10 years? We are. And, we’ll do it as two public educators, not doctors or investment bankers.

We aren’t quite there yet, but here’s how we’ve turned things around and why I’m confident we’ll get there.

If you’ve just started paying attention to your finances in your 30s, 40s, or even 50s it’s not too late. No doubt your situation is different, but you’re aware now and that matters. Ours is just one story – you can write your own!

Our First Twenty Years

We Started Out Broke

We started out as two new teachers, more than $100,000 in debt thanks to student loans and consumer debt from our college years. We then bought a house on a zero down mortgage and jumped into our careers. Living the American dream! [Read more…] about Clueless at 40 to Financially Independent by 50

Andrew Carnegie’s Cogs and the Path to FIRE

December 19, 2019 By Jesse Cramer 2 Comments

The FIRE movement, at its heart, is about blazing your own trail. Today’s writing will get this point across, and I’ll lead by example–we’re going to explore a bit. This article will be a winding road, but I hope you’ll trust me enough to guide you out to the other side. Grab your walking stick, and let’s set out.

We all know where the traditional life paths lead. It’s 40 years of 9-to-5 and working for the weekends. It’s using our 20s and 30s to bury ourselves in debt, only to use our 40s and 50s to dig ourselves out. And don’t forget about engaging in Cold Wars of one-upmanship with the neighbors and church group and PTA. Who does he think he is, driving a Tesla in this neighborhood?! This is what the Jones’ have done for generations.

The FIRE movement shirks those “traditions.” Vicki Robin—if she’s not an O.G. FIRE founder, I’m not sure who is—reminds us, “Money is something we trade our life energy for…The only real asset you have is time.” There’s an idea worth holding onto. The only real asset you have is time. We’ll come back to this idea. But first, a detour! Let’s go check out the steel mill… [Read more…] about Andrew Carnegie’s Cogs and the Path to FIRE

5 Things I Learned from the FIRE Community

October 25, 2019 By Sam at How To FIRE 1 Comment

Many people dream of becoming financially independent and retiring early, but it’s something that only a small percentage ever achieve. For most, work continues well into their sixties (and sometimes beyond), leaving little time to enjoy the fruits of their labor.

The idea behind FIRE (which stands for financial independence, retire early) is to provide the intellectual tools, resources, and support that people need to make early retirement a genuine possibility. [Read more…] about 5 Things I Learned from the FIRE Community

5 Awesome Ideas for Building Long Term Wealth

June 17, 2019 By Amy Beardsley 1 Comment

Building long term wealth is the cornerstone of the FIRE movement, but it takes more than cutting back how much you spend on groceries to get there. While watching your budget and keeping your expenses down help, you need lasting wealth if you hope to achieve financial independence.

So, what’s the secret to lasting wealth? Unfortunately, if you’re searching for the mystic yellow brick road leading to success, you’ll be disappointed.