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.

Is FIRE Worth the Effort?

By The Saving Scientist Leave a Comment

Is FIRE worth the effort? Sometimes I wonder if chasing after FIRE (Financial Independence, Retire Early) is really what I want and whether it’s a movement I should enthusiastically encourage. I ask myself if maybe I’ve just been sucked into the hype, running after something I don’t really understand or appreciate?

Don’t get me wrong – it would be great to have the freedom to decide how I live my life and how I choose to spend my time and money. But is it worth the effort to chase after FIRE if I don’t have plans to retire early? More importantly, is it worth pursuing if I’ve joined the FIRE movement too late to retire early?

As a 30-something year old, I understand that time may still be on my side. I’m no spring chicken, but I’m also not staring retirement in the face. I’m in that awkward in-between phase. And this possibly makes me one of the lucky ones.

But what about my family, friends and colleagues who don’t have the same luxury? Should they be discouraged from chasing after FIRE, simply because the movement was birthed too late for them?

How The Shockingly Simple Math Behind Financial Independence Turned My Life Around

By Ty Roberts 1 Comment

It was during the darkest year of my life when I discovered the FIRE movement and learned about financial independence. I learned about it from a blog post titled The Shockingly Simple Math Behind Early Retirement written by a guy that was calling himself Mr. Money Mustache. That article resonated with me like few things ever have. Something inside of me clicked and it’s not an exaggeration to say that my life hasn’t been the same ever since.

I’d just found something that would help me go from broke and unemployed to financially independent in about 13 years. I’ll retire early when I’m 49 years old, all because I learned about one simple concept called Financial Independence. And just like we tell our friends and family whenever we find a great new restaurant, or find a binge-worthy show on Netflix, I want EVERYONE to know about financial independence.

$Shockingly Simple Math$

Need Help Achieving FIRE? Take a Mini FIRE Break

By Josh Patoka 2 Comments

A Mini FIRE break could be just the thing you need on your journey to financial independence and early retirement.

When we talk about FIRE, it can be easy to focus almost exclusively on the portfolio size needed to reach your FIRE number. But when you have years left before you reach the barebones “Lean FIRE,” you may need some periodic motivation to keep saving for early retirement.

“Mini FIRE” is one way to find that breath of fresh air you need. This is a time to pause on your journey to enjoy life, like a sabbatical. Early retirement is still your end goal. But if you’re on the edge of burnout or dealing with major life events, FIRE may be the last thing on your mind.

Taking the time to enjoy the fruits of your labor (so far) can mean you stay the course.

5 Outdated Financial Rules that Need to be Broken

By Ty Roberts 1 Comment

These outdated financial rules were created by previous generations, but no longer hold true in today’s world.If you’re interested in achieving financial independence and early retirement then you need to consider breaking these 5 outdated financial rules.

How 14 Months of Extended Unemployment Lead to Financial Independence

By Ty Roberts 12 Comments

Mike Tyson once said “everyone has a plan till they get punched in the face.” The opposite was true for me. It took a solid punch to the face for me to wake up and realize that I needed a plan. This is the story of how my 14 months of extended unemployment led me down a path to financial independence and early retirement.