FIRE stands for Financial Independence, Retire Early. The goal is to accumulate enough wealth that your investment returns cover all your living expenses — freeing you from depending on a salary. You do not have to retire; you just get to choose.
The FIRE number
Your FIRE number = annual expenses × 25. If you spend ₹6 lakhs per year (₹50,000/month), you need ₹1.5 crore invested in assets generating 4% real returns. At ₹4% withdrawal rate, ₹1.5 crore funds ₹6 lakhs/year indefinitely.
Types of FIRE
- LeanFIRE: extremely frugal lifestyle, very low corpus needed
- FatFIRE: comfortable lifestyle, larger corpus
- BaristaFIRE: partial retirement — you do some part-time work to cover a portion of expenses
- CoastFIRE: invest heavily early, then stop adding and let compounding do the work
Is FIRE realistic for Indian salaried employees?
Yes, with discipline. A person earning ₹80,000/month, saving 40%, and investing in index funds from age 25 can realistically reach their FIRE number by 45–50. The key lever is the savings rate — not income. See the specifics: can you retire before 50 in India and how much to retire in India.