What is FIRE?
FIRE stands for Financial Independence, Retire Early. The idea is simple: save and invest enough money that your investments generate more than you spend. At that point, work becomes optional — not because you're rich, but because your money works for you. You don't have to quit your job. You just stop having to work.
The 25x rule
Multiply your annual spending by 25. That's your FIRE number — the amount you need invested to retire. Spend $40,000/year? Your number is $1,000,000.
This comes from the 4% rule: research shows you can safely withdraw 4% of your portfolio per year without running out of money over a 30-year period. It's not a guarantee, but it's a solid starting point.
The savings rate is everything
The single biggest lever is your savings rate — the percentage of income you save. Going from 10% to 50% doesn't just double your savings; it also cuts your spending in half, which slashes your FIRE number too. The math is brutal in the best possible way. A 10% savings rate means ~46 years to FIRE. A 50% rate? ~17 years. Same income, wildly different timelines.
Where to actually invest
Most FIRE followers keep it simple: low-cost index funds that track the entire stock market. No stock picking, no timing the market. The goal is consistent, boring, automatic investing — every month, rain or shine. Time in the market beats timing the market.
Year 10 projection assumes all dividends are reinvested (DRIP) with no price appreciation — conservative estimate.
Got a question about FIRE, investing, savings strategies, or just "am I doing this right?" — ask away. Each prompt opens a real conversation with Claude, your AI money bro.
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