Browse Definitions :
Definition

FIRE (Financial Independence, Retire Early)

Contributor(s): Matthew Haughn

FIRE (Financial Independence, Retire Early) is a lifestyle, also referred to as a movement, aimed at reducing expenditures and increasing investing in order to quickly gain financial independence and the possibility of retirement at an early age.

FIRE offers a method allowing some to retire as early as their forties, thirties or even twenties. However, advocates emphasize that the movement is less about retiring early and more focused on gaining enough financial freedom to have the option of working or not. Some supporters of the movement advise that anyone can do this, saying that it just requires more cutting back for some individuals than others. Realistically, it is recognized that FIRE is more possible for people with higher salaries and the ability to save money, and is less suited for those with low income salaries and those unable to save due to basic expenses.

FIRE‘s formula is very simple: spend less than you save and invest the surplus. Low-fee investment options such as index funds are popular and recommended. In general, it is recommended that people should save twelve times their yearly spending to fund retirement at the standard age of 65. The FIRE movement recommends people save up to 25 times what they would regularly spend in a year – generally more than 50% of their income.

FIRE followers believe that financial independence is attainable and dependent on three factors: income, spending and time. A few suggestions for reducing expenses include:

  • Purchasing used cars instead of new ones
  • Lowering housing costs
  • Using a pre-paid cell phone service
  • Reduce grocery and restaurant spending
  • Eliminating cable TV, also known cord cutting
  • Adding secondary income streams
This was last updated in September 2018

Continue Reading About FIRE (Financial Independence, Retire Early)

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • compliance audit

    A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

  • Whistleblower Protection Act

    The Whistleblower Protection Act of 1989 is a law that protects federal government employees in the United States from ...

SearchSecurity

  • Malwarebytes software

    Malwarebytes is a cross-platform anti-malware program that detects and removes malware and other rogue software.

  • Transport Layer Security (TLS)

    Transport Layer Security (TLS) is a protocol that provides authentication, privacy, and data integrity between two communicating ...

  • van Eck phreaking

    Van Eck phreaking is a form of electronic eavesdropping that reverse engineers the electromagnetic fields (EM fields) produced by...

SearchHealthIT

SearchDisasterRecovery

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

  • business continuity software

    Business continuity software is an application or suite designed to make business continuity planning/business continuity ...

  • business continuity policy

    Business continuity policy is the set of standards and guidelines an organization enforces to ensure resilience and proper risk ...

SearchStorage

  • solid-state storage

    Solid-state storage (SSS) is a type of computer storage media made from silicon microchips. SSS stores data electronically ...

  • persistent storage

    Persistent storage is any data storage device that retains data after power to that device is shut off. It is also sometimes ...

  • computational storage

    Computational storage is an information technology (IT) architecture in which data is processed at the storage device level to ...

Close