The FIRE movement focuses on achieving financial independence and early retirement through wise saving, investing, and lifestyle changes.

The Financial Independence, Retire Early (FIRE) movement is a lifestyle strategy that aims to allow individuals to achieve financial freedom and retire years earlier than the standard retirement age. At its core, FIRE is about maintaining a disciplined approach to saving and investing, often prioritising income generation and extreme frugality during one’s working years to build substantial financial reserves. Adherents to this movement typically aim to live on a fraction of their income, often saving 50%-70% or more, while strategically investing in vehicles that provide consistent growth and passive income.

The philosophy behind FIRE stems from the belief that financial independence offers individuals greater control over how they spend their time, unburdened by the necessity of conventional full-time employment. People who adopt this strategy often adjust their lifestyle to match long-term goals, valuing quality over quantity in their consumption habits. Rather than material wealth, FIRE focuses on optimising financial choices to create a sustainable lifestyle, aligned with personal values and priorities.

The process towards FIRE usually involves three essential steps: cutting back on non-essential expenses, significantly increasing savings rates, and choosing investment strategies with the aim of steady long-term growth. Many followers build a diverse portfolio, investing in stocks, real estate, or income-generating assets. The ultimate aim is to surpass the 'crossover point' where passive income meets or exceeds living expenses, signalling financial independence. Once this is achieved, individuals gain the ability to work on their terms or leave traditional employment behind altogether.

Within the FIRE community, there are different variations tailored to individual goals and income levels. These include 'Lean FIRE', which focuses on attaining financial independence with minimal living expenses, typically for those comfortable with a modest lifestyle. For those aiming for a more comfortable standard of living, 'Fat FIRE' centres on accumulating a larger financial reserve to support a higher cost of living. Meanwhile, 'Barista FIRE' appeals to those who might want to leave high-stress jobs but continue part-time or passion projects to cover supplementary expenses. Each approach is designed to reflect personal ambitions and ensures flexibility in the journey towards financial independence.

Critics of the movement argue it can be impractical or extremely challenging for those with lower incomes or higher financial obligations. Saving aggressively and adhering to a minimalist lifestyle may not resonate with everyone and could lead to sacrifices in quality of life. Moreover, the uncertainty of market performance and economic changes are risks that practitioners must account for while planning long-term investments. For many, balancing financial ambitions with life's unpredictable nature becomes a crucial challenge.

Nonetheless, proponents underscore that the FIRE philosophy is adaptable, helping people reframe their financial priorities and take steps to reduce debt, increase savings, and build rewarding life choices. Even if full financial independence or early retirement isn’t achieved, adopting aspects of the FIRE mindset can lead to greater financial security and a sense of empowerment over personal finances.