What is FIRE?

Background

FIRE stands for Financial Independence, Retire Early. It is a movement focused on saving and investing aggressively so that investment income can cover expenses much earlier than the traditional retirement age.

Explanation

FIRE planning starts from your target annual expenses in retirement and works backwards to a corpus (often 33X–40X expenses in India). By keeping expenses low and savings rate high, you accelerate reaching that corpus. Many FIRE followers do not stop working entirely; they leave stressful full-time jobs for more flexible or passion-driven work.

Example

If you want to spend ₹6 lakh per year in FIRE, a common Indian target is ₹2–2.4 crore. With a savings rate of 40–50% and a sensible equity-heavy portfolio, you may reach this corpus in 15–20 years instead of 35–40.

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