The FIRE number — Financial Independence, Retire Early — is thy annual expenses multiplied by 25. At this stake, withdrawing 4% per year, thy money lasts approximately forever.
If thou spendest $40,000 a year, thy FIRE number is $1,000,000. If thou spendest $80,000, it is $2,000,000. The lower thy expenses, the smaller the mountain thou must climb.
Note the asymmetry: cutting expenses by $10,000/year reduces thy FIRE number by $250,000. There is no investment that gives a 25-to-1 return. Frugality IS the highest-yielding asset class.
Compute thy number. Write it on the wall. Visit it daily. The mind cannot hit a target it has not seen.
Sacred Tool · FIRE
Thy Number of Freedom
FIRE Number (4% Rule)
$1,250,000
Lean (3.5%)
$1,428,571
The Seal of the Chamber
Know thy number. Pursue it relentlessly.