FIRE movement

The Financial Independence, Retire Early (FIRE) movement is a personal finance phenomenon characterized by high savings rates—often exceeding the 10–15% typically recommended by financial planners—and aggressive investment, with the goal of accumulating sufficient assets to cover living expenses without traditional employment. The movement gained traction among millennials in the 2010s, spreading through blogs, podcasts, and online communities. Participants in the FIRE movement typically seek to reduce expenses and maximize savings, building investment portfolios intended to generate passive income. A common framework advocated within the community involves spending less than one earns, investing the surplus, and minimizing debt. The most frequently cited savings target is based on the 4% rule, introduced by financial planner William Bengen in 1994, which suggests that a retirement portfolio equal to 25 times annual expenses can sustain long-term withdrawals. Some researchers, including economist Karsten Jeske, have argued that early retirees—facing potentially 50+ years of retirement—should use more conservative withdrawal rates of 3.25–3.5%. Implementation of FIRE strategies generally involves structured budgeting, consistent investing, and careful planning around long-term withdrawal rates.