Editorial
Start here: your path to financial independence in 5 steps
New to FIRE? Follow the five steps in order — understand the idea, know your number, raise your savings rate, invest simply, and stay the course.
New to FIRE and financial independence? You're in the right place. Here's the path in five steps — follow them in order, so you build the foundation before diving into the technical stuff.
The five steps
- Understand the idea. FIRE means saving and investing enough that your returns can cover your spending — so work becomes optional. Start with what FIRE is.
- Know your number. Your "FIRE number" is roughly 25 times your annual spending. Work out yours with the FIRE calculator.
- Raise your savings rate. It's the single biggest lever — bigger than your return. See how under Saving.
- Invest simply and cheaply. Most people get furthest with broad index funds. Begin with Investing.
- Stay the course. FIRE is a marathon. The lifestyle you build along the way is the whole point — not deprivation.
Once you've been through the steps, dive into the section that fits where you are right now. And use the tools — your own numbers say more than a thousand articles.