Full disclosure: I am a proud affiliate, meaning if you click a link and make a purchase, I may earn a commission at no extra cost to you. My recommendations are based on deep experience with and knowledge of the products I mention and I recommend products only when they are genuinely helpful and useful, not because of the small commissions I may receive. Please don’t spend any money on products I recommend unless you genuinely believe they will help you achieve your goals.

Have you ever wondered, “What is the FIRE movement?” Whether you’re new to the concept, or simply trying to get a better understanding of what FIRE is, you’re in the right place.

FIRE stands for Financial Independence, Retire Early. The FIRE Movement is a lifestyle that prioritizes saving and investing aggressively. The idea is to save and invest in such a way so that you can retire early and live off your savings and investments (if you so choose).

Even if you don’t choose to retire early, working towards FIRE can have immense life benefits. 

It can give you the ability to choose work – or not, improved health (physical and mental), more time to pursue hobbies and spend time with family, and greater financial security, among other benefits.

Working toward FIRE can be meaningful, regardless of your financial goals, even if you plan on building a long, successful career.

If this sounds intriguing and you want to learn more about the FIRE movement, then keep reading on. You’ll learn more about the benefits of following the FIRE movement, plus some simple ways you can get started today. 

By the time you’re done reading this article, you’ll be able to answer the question, “What is the FIRE movement?” once and for all.

So What IS the FIRE Movement? A Brief Breakdown

The FIRE movement is most popular among millennials, but it can be a valuable approach for anyone who dreams of achieving financial freedom.

There are many different ways to utilize the FIRE movement, but the basic premise is the same: save as much money as you can and invest it wisely so that you can reach your financial goals early.

After all, the sooner you achieve your financial goals, the sooner you can start living life on your terms.

That kind of freedom can bring immense value to your life, regardless of what you choose to do with your time.

How Can the FIRE Movement Help Me Achieve My Financial Goals?

Want a better answer to “What is the FIRE Movement?” Consider how it can help you achieve your goals.

FIRE can help you achieve a variety of financial goals, including the following:

Achieving financial freedom

With financial freedom, you can decide whether or not to work, and how often. Ultimately, financial freedom gives you greater freedom to decide what you do with work, if anything.

At its greatest heights, financial freedom can grant you enough money to live the life you want WITHOUT having to work at all. 

The FIRE movement can help you achieve financial freedom by giving you the financial flexibility to pursue your passions and live life on your terms.

So you might choose to stay in your career… Or you might pursue a passion project instead. Perhaps you decide to stop working entirely. Financial freedom gives you the ability to choose what work is right for you… if any.

Retiring early

This is the most common goal among FIRE followers. By saving and investing aggressively, you can reach your financial independence goals sooner and retire early, if you so choose.

Paying off debt

The FIRE movement can also help you pay off debt faster. By saving and investing more money, you can make larger payments on your debt and get out of debt sooner.

Building wealth

With FIRE, you naturally build wealth when you save and invest wisely. Over time, your savings and investments will grow and you will become wealthier.

Reducing stress

Finances contribute to a significant amount of stress for people everywhere.

FIRE can help relieve stress by giving you a clear financial plan and a goal to work towards. When you know that you are on track to achieve your financial goals, you can relax and enjoy more of your life.

Saving for a down payment on a house

If you dream of purchasing a house, FIRE can help you save the money you need to purchase a house.

Funding your children’s education

Higher education is expensive, and millions have gone deep into debt to pay for student loans. If you dream of paying for your children’s education, then FIRE can help you get on the right track.

Traveling the world

Financial freedom comes with numerous benefits, including giving you the freedom to choose how you spend your time. If traveling the world matters to you, then FIRE might be a valuable pursuit (it’s certainly a dream of mine!).

Starting your own business

It’s expensive to fund a new business, and new businesses come with inherent risks. Those risks may come at a lower personal cost if you manage to first achieve financial freedom.

These are only a few of the benefits of achieving financial freedom, but the opportunities are limitless.

So Now You Can Answer the Question “What Is the FIRE Movement?” What’s Next?

Have you considered the value that FIRE can add to your life?

What would you do if every day was your Saturday? How would you spend your time? Reflect on how your life might change if you had this level of freedom over your life and you’ll undoubtedly uncover unique benefits to your own life.

Decided that FIRE might be right for you and wondering how to get started? Keep reading on!

Resources and Tools for Newbies to the FIRE Movement

First, here are some resources and tools to help you get started:

• Books: 16 Books I Recommend to FIRE Your Career
• Other websites and communities: Beyond FIRE Your Career, I also recommend checking out Mr. Money Mustache, Early Retirement Now, and Mad FIentist.
• Calculators: Online calculators that can help you track your progress toward your FIRE goals, such as the FIRECalc and the 4% Rule Calculator.
• Podcasts: The ChooseFI Podcast, BiggerPockets Money Podcast, and FIRE Drill Podcast are all great podcasts that can teach you about the FIRE movement and how to achieve your financial goals.

I routinely update the Recommendations page of this website, so check back frequently for more of the latest tips and tools.

How to Start Following the FIRE Movement: 7 Steps

Ready to get started? Here are a few steps you can take to kickstart your FIRE journey.

1. Calculate your expenses. 

A good place to start is by calculating your monthly expenses. This will help you get a better understanding of your current situation, and where you may need to make adjustments to achieve your FIRE goals.

2. Create a budget. 

Once you know how much money you need to save each month, you can create a budget to help you reach the goals you set for yourself.

Psst… if you need a tool to help you stay on target with your goals, I recommend using ClickUp.

3. Pay off debt. 

If you have any debt, focus on paying it off as quickly as possible. This will free up more money to save and invest.

4. Increase your income. 

You can increase your income by getting a raise at work, starting a side hustle, or changing jobs. When you increase your income, you can allocate more of your money to savings and investments and supercharge your FIRE goals.

5. Invest your money wisely. 

Once you have a solid savings cushion, start investing your money in smart investments. There are numerous options, so be sure to do your research and choose investments that are right for you.

6. Live below your means. 

Ultimately, to achieve FIRE, you’ll need to learn to live below your means. This means spending less money than you earn. 

7. Learn about personal finances.

From saving, investing, paying off debt, and other personal finance topics, the more you can learn about personal finances, the better off you’ll be.

We live in a complicated world with a lot of nuances, there’s no shame in admitting you don’t know it all, but you’ll be better served by learning what you can.

Conclusion

Now you know how to answer the “What is the FIRE movement?” question.

The FIRE movement is a great way to achieve your financial goals early. By following the tips above, you can start following the FIRE movement and achieve financial freedom sooner.

Do you still have questions and want to learn more? The Start Here page of this website has a list of other helpful resources.

Otherwise, feel free to comment your questions below in the comments section.

Best of luck to you on your journey to financial freedom!

Now that you’ve answered the question, “What is the FIRE movement,” you might be wondering what other methods you can use to FIRE Your Career. Check out the posts page for more ways you can FIRE Your Career and achieve financial freedom.

FIRE Your Career: Achieve Financial Freedom Through Your Career & Spend MORE Time Doing What You Love.

Tools I frequently recommend:

Strengths Finder (book to help you uncover your innate strengths, includes a free personality quiz)

ClickUp (my recommended goal-tracking and project-management tool)