Section outline

  • Understanding the FIRE Number 🔢💭

    “How much money do I need to never work again?” That’s the heart of the FIRE journey. Your FIRE Number is the total amount of wealth you need so that your investments can cover your annual expenses — for life.

    • 🔹 The Simple Formula

      A common way to calculate your FIRE Number is:

      FIRE Number = Annual Expenses × 25

      This is based on the idea that if you can withdraw 4% of your investments every year (known as the 4% Rule), it should last your lifetime.

      Example:

      • 🧺 Monthly expenses = ₹30,000 → Yearly = ₹3,60,000
      • FIRE Number = ₹3,60,000 × 25 = ₹90,00,000

      That’s how much you’d aim to have invested to “retire early.”

    • 🔹 But This is Personal – Not Just Math!

      • 👶 Have kids or elderly parents to support? Your FIRE number may be higher.
      • 🏡 Living in a small town? Lower cost = smaller FIRE number!
      • 💰 Planning side income post-FIRE? You can reduce your target.

      🔎 This is not about chasing a big number blindly — it’s about knowing your freedom point.

    • 🔹 Tips to Make It Feel Achievable

      • ✅ Break it down into smaller yearly goals — not just “90 lakhs”
      • ✅ Include inflation — update your number every 1–2 years
      • ✅ Start a Google Sheet or use a notebook to track your target vs actual

      💬 “When I wrote my FIRE number on paper, it stopped feeling like a dream — and started feeling like a plan.”

      🌼 Final Thought

      Knowing your FIRE Number is like putting a pin on a map. The road may be long, but now you know where you’re going. And every rupee you save is one step closer.