Key Takeaway: FIRE Number = Annual Expenses × 25. At 50% savings rate, you can achieve FIRE in ~17 years.
What is the FIRE Movement?
FIRE stands for Financial Independence, Retire Early. The core idea: save and invest 50-70% of your income to build a portfolio large enough to sustain your lifestyle without employment income.
The 25x Rule
Multiply your annual expenses by 25 to get your FIRE number. • ₹30,000/month expenses → FIRE number: ₹90 lakhs • ₹50,000/month expenses → FIRE number: ₹1.5 crore • ₹1,00,000/month expenses → FIRE number: ₹3 crore
Types of FIRE
• Lean FIRE: Minimalist lifestyle, lower expenses • Regular FIRE: Comfortable middle-class lifestyle • Fat FIRE: Luxury lifestyle with higher corpus • Coast FIRE: Save enough early, then coast • Barista FIRE: Semi-retire with part-time income
How Long to Achieve FIRE?
• 30% savings rate: 28 years • 40% savings rate: 22 years • 50% savings rate: 17 years • 60% savings rate: 12.5 years • 70% savings rate: 8.5 years
India-Specific Considerations
• Healthcare costs rising 10-15% annually • Inflation in India (6-7%) is higher than Western countries • No social security — you're entirely on your own • Family obligations need separate planning • Real estate can provide rental income