What Is a FIRE Number? A Beginner Guide to Financial Independence
Your FIRE number is the amount of money you need invested to never work again.
It sounds almost too easy to be true. But yeah - that is really it.
The Simple Formula
Your FIRE number = Annual expenses x 25
If you spend $40,000 per year, your FIRE number is $1,000,000.
A Real Example
Marcus is 33. Annual expenses: $44,000/year. FIRE number: $1,100,000. Current savings: $32,800.
The Real Value of Knowing Your Number
For years, I spent without thinking about tomorrow. Until I saw people around me still grinding in their 60s and 70s with no way out. That is when it hit me.
Written by the FirePath Team. Not financial advisors - just regular people who got tired of working without a plan.
The 4% Rule originates from the Trinity Study (1998). It is a guideline, not a guarantee.