What if you could retire at 40 or 45
instead of 65?
That is what the FIRE movement is about!
WHAT IS FIRE?
Financial Independence Retire Early
The math is simple:
→ Save 25x your annual expenses
→ Withdraw 4% per year
→ Money lasts forever!
EXAMPLE:
Annual expenses: $40,000
Target retirement number: $1,000,000
At $1M invested → withdraw $40,000/year
→ 4% rule says money never runs out!
4 TYPES OF FIRE:
- LEAN FIRE:
→ Retire on less than $40,000/year
→ Very frugal lifestyle
→ Target: $500,000-800,000 - FAT FIRE:
→ Retire on $80,000-100,000+/year
→ Comfortable lifestyle
→ Target: $2,000,000-2,500,000 - BARISTA FIRE:
→ Semi retire
→ Work part time for health insurance
→ Investments cover most expenses - COAST FIRE:
→ Save enough young
→ Let it grow to retirement number
→ Work normal job for expenses only
HOW TO ACHIEVE FIRE BY 45:
Save 50-70% of income (key requirement)
→ On $60,000 salary → save $30,000-42,000/year
→ Invest all of it in index funds
→ Cut expenses dramatically
TIMELINE EXAMPLE:
Age 22: Start investing $2,000/month
Age 22-45 (23 years): Invest consistently
At 10% average return = $2,100,000+
→ Can retire at 45 on $84,000/year!
STEPS TO START:
- Calculate your annual expenses
- Multiply by 25 = your FIRE number
- Calculate how much to save monthly
- Maximize tax advantaged accounts
- Live below your means aggressively
- Track net worth monthly
The earlier you start → earlier you retire!
What is YOUR FIRE number? 💰
