The FIRE (Financial Independence, Retire Early) movement is a lifestyle movement with the goal of gaining financial independence and retiring early.FIREmovementFromWikipedia,thefreeencyclopediaJumptonavigationJumptosearchMovementwhosegoalisfinancialindependenceandretiringearlyTheFIRE(FinancialIndependence,RetireEarly)movementisalifestylemovementwiththegoalofgainingfinancialindependenceandretiringearly.Themodelbecameparticularlypopularamongmillennialsinthe2010s,gainingtractionthroughonlinecommunitiesviainformationsharedinblogs,podcasts,andonlinediscussionforums.[1][2][3][4][5]ThoseseekingtoattainFIREintentionallymaximizetheirsavingsratebyfindingwaystoincreaseincomeand/ordecreaseexpenses,alongwithaggressiveinvestmentsthatagainincreasestheirwealthand/orincome.Theobjectiveistoaccumulateassetsuntiltheresultingpassiveincomeprovidesenoughmoneyforlivingexpensesthroughoutone'sretirementyears.ManyproponentsoftheFIREmovementsuggestthe4%ruleasaroughwithdrawalguideline,thussettingagoalofatleast25timesone'sestimatedannuallivingexpenses.Uponreachingfinancialindependence,paidworkbecomesoptional,allowingforretirementfromtraditionalworkdecadesearlierthanthestandardretirementage.Contents1Background2History3Criticism4Seealso5ReferencesBackground[edit]FIREisachievedthroughaggressivesaving,farmorethanthestandard10–15%typicallyrecommendedbyfinancialplanners.[6]Assumingexpensesareequaltoincomeminussavings,andneglectinginvestmentreturns,observethat:Atasavingsrateof10%,ittakes(1-0.1)/0.1=9yearsofworktosavefor1yearoflivingexpenses.Atasavingsrateof25%,ittakes(1-0.25)/0.25=3yearsofworktosavefor1yearoflivingexpenses.Atasavingsrateof50%,ittakes(1-0.5)/0.5=1yearofworktosavefor1yearoflivingexpenses.Atasavingsrateof75%,ittakes(1-0.75)/0.75=1/3year=4monthsofworktosavefor1yearoflivingexpenses.Fromthisexample,itcanbeconcludedthatthetimetoretirementdecreasessignificantlyassavingsrateisincreased.Forthisreason,thosepursuingFIREattempttosave50%ormoreoftheirincome.[7]Ata75%savingsrate,itwouldtakelessthan10y