What is the FIRE movement?

FIRE gives you the freedom to do whatever you want, and it's closer than you think.

I thought the FIRE movement was just my bowels after too much Indian food… Turns out it’s a financial revolution. 🔥🍛🚽 Ok, enough naan-sense, lets get into it.

Centered around careful spending, smart investing, and mindful living, FIRE (Financial Independence, Retire Early) offers a path to financial freedom and retiring decades earlier than traditional retirement plans. Sounds wild? We thought so too. But we did the work, stayed focused, and hit early retirement with our kids before 40.

History and philosophy of FIRE

The FIRE movement throws a wrench into the tired old script of working until you're 65 and hoping you’ve got enough energy left to enjoy what’s left of life. For me, that would’ve meant another 30 years of commuting, meetings, and watching life pass by from a cubicle. No, thank you.

FIRE flips that script. The idea is simple: grow the gap between what you earn and what you spend, and invest the difference like your future depends on it—because it does. That usually means saving 50–70% of your income. Sounds intense? It can be. But FIRE isn't just about cutting corners or living off rice and beans. It's about finding that sweet spot where you’re living intentionally, spending on what actually matters, and still enjoying the ride.

The roots of this mindset go back to Your Money or Your Life by Vicki Robin and Joe Dominguez. That book asked a tough question: how much of your life are you trading for that next purchase? It made people rethink their relationship with money—and time. Then came Early Retirement Extreme by Jacob Lund Fisker, which cranked the strategy dial up to eleven, with a blueprint for radical savings and simple living. And finally, J.L. Collins sealed the deal with Simple Path to Wealth, which laid out investing for FIRE in plain English.

But FIRE isn't just a math game. It's a mindset shift. At its core, it’s about aligning how you spend your time and money with what you truly value. It’s about building a life where you're not just living for weekends or waiting for a far-off retirement—you're building freedom now.

Here’s the part people don’t talk about enough: if you grind so hard that you forget to live, you won’t magically become happy once you hit your FIRE number. You can’t hate your life for 10 years and expect bliss on the other side. This is a battle we constantly face on our journey. Your path has to be sustainable and meaningful—especially if you're doing it with kids.

Key principles of the FIRE movement

1. High savings rate: FIRE starts with one core habit: saving a big chunk of what you earn. We're talking 50% or more. That means making intentional choices—cutting out the noise and funneling your income toward freedom instead of fleeting stuff. Every dollar you don’t spend is one step closer to calling your own shots.

2. Frugality (not deprivation): Frugality in FIRE isn’t about living miserable and counting pennies. It’s about spending with purpose and cutting the crap that doesn’t serve your life or your family’s future. Real talk examples:

   • Move into a smaller house that fits your needs, not your ego.

   • Buy the reliable Honda, not the Benz with a lease payment.

   • Cook your meals—your budget and your health will thank you.

   • Skip the fashion treadmill and shiny tech you don’t need.

   • Choose simple, low-cost fun with your kids over whatever subscription you forgot to cancel (cancel that OnlyFans).

3. Invest for growth: this isn’t about stuffing cash under a mattress. You invest—smartly. Low-fee index funds, automated contributions, long-term mindset. Let compound interest do the heavy lifting while you focus on living your life.

4. The Rule of 25: here's the math. Figure out your annual spending, multiply it by 25, and that’s your FIRE number. Hit that, and your investments can theoretically cover your expenses indefinitely. That number is your target—a concrete goal you can work toward.

Different approaches to achieving FIRE

Not all FIRE journeys look the same. Depending on your goals, lifestyle, and tolerance for frugality, there are a few different flavors. Here's how they break down:

Approach	Description	Savings Rate	Our Take
Lean FIRE	The ultra-frugal route, extreme minimalism, a tight budget, and living on under $25,000 per year. It’s all about retiring early by slashing expenses to the bone	High	I couldn't do this.
Fat FIRE	Retiring early without giving up the good stuff. You still save aggressively, but you build a bigger nest egg so you can spend more in retirement.	High	This is us. We spend about $120k/year.
Barista FIRE	The middle ground. You leave your traditional 9-to-5, but still work part-time—maybe at a coffee shop, or something flexible you enjoy. Your investments cover most of your needs, and the part-time work fills in the gaps.	Moderate	Great for people who want more time now, and don’t mind working a little longer to get to full FIRE.
Coast FIRE	You've already invested enough that, if you left it alone, it would grow into your full retirement fund by your desired date. You don’t need to save anymore—you’re just coasting.	Moderate to High (up front)	A great milestone. It gives peace of mind and options.

Each of these paths leads to freedom, and they're not mutually exclusive. It’s just a matter of deciding how fast you want to get there, and what kind of life you want once you arrive. For us, FIRE wasn’t about escaping work—it was about building a life where work became optional, not required.

Most FIRE followers plan to withdraw 3–4% of their portfolio annually to cover living expenses once they hit their number. It’s a simple rule of thumb that keeps your money working while you enjoy the freedom you built. And if you’ve got a side hustle—or any extra income stream—you can hit FIRE even faster.

For us, Fat FIRE was the clear winner. It felt achievable, made the journey enjoyable, and it gives us the lifestyle we want. We like quality travel and not second-guessing every grocery bill. FIRE shouldn’t feel like punishment. It should feel like freedom—and Fat FIRE gave us that balance.

Benefits and drawbacks of FIRE

Benefits:

1. Freedom to choose: when work becomes optional, you get to call the shots. Travel, passion projects, more time with your kids—FIRE gives you the flexibility to design your life around what matters most to you. Not to mention, you gain financial resilience to weather tough times.

2. More life, less burnout: FIRE means stepping off the hamster wheel before you're too tired to enjoy life. Whether that’s retiring early or just slowing down, you're in control of your pace.

3. Purpose on your terms: you’re not just quitting your job—you’re reclaiming your time. Use it to explore, create, volunteer, or just be present with your family. FIRE lets you spend your best years doing what fulfills you.

More on the 'why' behind FIRE here.

Drawbacks:

1. It takes discipline: saving 50%+ of your income isn’t easy. It means trade-offs—less spending, more intention. If you’re not clear on your 'why,' it’s easy to burn out or give up.

2. Life happens: surprise expenses, healthcare, inflation—it’s all real. A too-tight FIRE plan leaves no room for error, so you’ve got to build in a buffer (and stay flexible).

3. Not everyone gets it: leaving the workforce early or saving aggressively can be isolating if your identity was tied to your old habits. You’ll need to create new connections and purpose —or risk feeling isolated.

Resources

Below you'll find some of best voices in the biz. Always get a second opinion!

Books:

• The Simple Path to Wealth by JL Collins

• Your Money or Your Life by Vicki Robin and Joe Dominguez

• Early Retirement Extreme by Jacob Lund Fisker

Blogs:

• Mr. Money Mustache

• Mad Fientist

• Go Curry Cracker

Podcasts:

• Choose FI

Final thoughts

FIRE isn’t just about quitting your job—it’s about owning your time and building a life that actually fits your family’s values. Whether you’re dreaming of full early retirement or just more freedom in your day-to-day, the principles of FIRE can get you there.

It’s not easy, but it’s doable. We did it—with kids, before 40—and we’re here to show you 'why' and 'how.' If you’re ready to start mapping out your own path, follow along and dig in.

Let’s build a life where work is a choice, not a necessity.