I Thought This Website Was About Forest Fires, Why Am I Here?

In case you’re new to the acronym, FIRE stands for Financially Independent, Early Retired.


Becoming financially independent means that you have enough money saved up to not have to work anymore and still live at your current lifestyle/spending level.  The standard measurement of this is when you have 25-times your annual spending saved up, so for instance if you spend $40,000 a year you would need a million dollars saved up.  Based on the Trinity Study, if you reach this level of savings and continue to spend $40k a year the gains generated from your investments will very likely support your lifestyle in perpetuity and you would not run out of money.  Yes, that’s inflation adjusted.


Retired Early.  Well, this is pretty self-explanatory.  Many people choose to check-out and ditch their day job when they reach FI.  Why keep going to a prison they hate for 40 hours a week when they have enough money?  Many of these folks then go on to start blogging about it, become famous on the intertubes, and rake the cash in.  Then another subculture of folks accuse them of not being retired since they’re earning money from their blog, which is ‘work’.  And then they fight and get all pissy with each other on internet forums.  It’s a hoot!