FIRE stands for Financial Independence, Retire Early — accumulating enough invested wealth that withdrawals can cover your living costs indefinitely, freeing you from needing a paycheck. The target is often estimated as 25 times annual spending.
The single biggest driver of how fast you reach FIRE is your savings rate, because it both builds the portfolio and lowers the spending you need to cover. Related variants include Coast FIRE and Barista FIRE.
Related terms: Debt-to-Income Ratio · Net Worth