What Is FIRE?
FIRE stands for Financial Independence, Retire Early. Your FI number is typically 25x your annual expenses (based on a 4% safe withdrawal rate). Once your investments reach this amount, you can live off investment returns without working.
The Power of Savings Rate
Your savings rate is the single most important factor in reaching FI. A 50% savings rate means reaching FI in roughly 17 years, while a 75% savings rate can get you there in under 7 years, assuming 7% real returns.