RetirementFinancial Glossary
FIRE (Financial Independence, Retire Early)
Definition
A financial movement focused on aggressive saving and investing (typically 50-70% of income) to build a corpus that generates enough passive income to cover living expenses permanently, allowing early retirement. The standard formula requires 25x annual expenses as your FIRE number.
Why It Matters
The FIRE concept forces disciplined financial planning and highlights the power of savings rate over income level. In India, you must adjust the 4% rule for higher inflation (6-7%), lack of social security, and healthcare cost escalation. Most Indian FIRE planners target 30-35x expenses as a safer multiple.