FIRE (Financially Independent, Retire Early) is a financial movement that aims to help people achieve financial independence and retire earlier than the traditional retirement age. The basic idea behind FIRE is to save and invest a large portion of one's income, live frugally, and minimize debt, so that the investment returns can provide enough passive income to cover living expenses. The ultimate goal is to reach financial independence, which means having enough savings and passive income to cover basic living expenses without relying on traditional sources of income, such as a full-time job.
FIRE followers aim to achieve financial independence as early as possible, often in their 30s or 40s, so they can retire early and enjoy the freedom to pursue other interests, travel, or spend more time with family.
While FIRE is a noble goal and can be achievable with careful planning and disciplined saving and investing, it's not a one-size-fits-all solution and requires a significant amount of sacrifice and discipline to achieve. Before pursuing FIRE, it's important to carefully consider one's own financial goals, risk tolerance, and personal circumstances, and to seek the advice of a financial professional.