# Financial Independence, Retire Early (FIRE) People don't want to retire at 65, 67 or even later. FIRE is a *movement* of people who try to save enough money to retire early. Some people try to save ~70% of their annual income. Kickstarted in 1992 by the book [[Your Money or Your Life (book)]] by [[Vicki Robin]] and [[Joe Dominguez]]. The core premise of the book: People should evaluate every expense in terms of the number of working hours it took to pay for it. FIRE proponents try to use as little as they can from their accumulated funds (3-4% of the balance yearly). When they reach ~30x their yearly expenses (roughtly $1M), they may quit their day jobs or retire from work altogether. Different variants, depending on how much people want to be able to spend yearly: - **Fat FIRE**: people with traditional lifestyles who aim to save substantially more than the average worker but don't want to reduce their current standard of living. Generally takes a high salary and aggressive savings and investment strategies for it to work - **Lean FIRE**: For minimalists. Requires a very restricted lifestyle. Lean FIRE requires to live on $25K or less per year - **Barista FIRE**: In-between, for people who quit their 9-to-5 jobs, but use a combination of part-time work and savings to live ## Related - [[Financial independence]] ## References - https://time.com/personal-finance/article/what-is-fire/ - https://www.investopedia.com/terms/f/financial-independence-retire-early-fire.asp