Financial Independence · 4% Rule · Years to Freedom
Based on the Trinity Study: if you withdraw 4% of your portfolio in year one and adjust for inflation each year, your money has a 95%+ chance of lasting 30+ years.
| FIRE Number Formula |
|---|
| Annual Expenses × 25 = FIRE Number |
| Savings Rate | Years to FIRE |
|---|---|
| 10% | ~51 years |
| 20% | ~37 years |
| 30% | ~28 years |
| 40% | ~22 years |
| 50% | ~17 years |
| 60% | ~12 years |
| 70% | ~8.5 years |
| 80% | ~5.5 years |
Assumes 5% real returns and starting from $0. Higher savings rate = exponentially faster.
| Type | Description |
|---|---|
| Lean FIRE | Minimal expenses, frugal lifestyle (~$25-40K/yr) |
| Regular FIRE | Comfortable middle-class lifestyle (~$40-60K/yr) |
| Fat FIRE | Luxury lifestyle, no spending constraints (~$80K+/yr) |
| Barista FIRE | Part-time work covers some expenses, smaller portfolio needed |
| Coast FIRE | Enough invested that compounding alone will hit FIRE by 65 |