The Financial Independence, Retire Early (FIRE) movement encourages individuals to save and invest aggressively, often up to 75% of their income, with the goal of achieving financial independence well before the traditional retirement age. Popularized by the book “Your Money or Your Life”, FIRE isn’t just about quitting work early; it's about gaining the freedom to choose how you spend your time. The core idea is to build a large enough nest egg, typically 25 times your annual expenses, so you can withdraw a sustainable 3% to 4% annually and cover your living costs without relying on a full-time job.

FIRE comes in different forms to fit varying lifestyles and goals. Lean FIRE is for those comfortable living frugally on minimal expenses, while Fat FIRE supports a more comfortable retirement with higher spending. Barista FIRE blends part-time work with savings to bridge the gap. While the movement has gained attention over the years, early retirement remains a tough target for most, and the 4% rule isn’t foolproof.

For those pursuing FIRE, a flexible plan, disciplined saving, and smart investing are key. Working with a financial advisor can help tailor a FIRE journey to your personal situation and help you work toward your FIRE goals. Read more about the movement and see sources here.

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