4% Rule

A movement focused on saving aggressively to retire decades before the traditional age 65. The goal is to save 25-30 times your annual expenses so your investments can cover your living costs forever.

The total amount of money you need invested to retire and live off your investments. Common formula is annual expenses multiplied by 25. If you spend $40,000 per year, your FIRE number is $1,000,000.

When you have saved enough that if you stop contributing, your investments will grow to fully fund your retirement by age 65. You still work to cover living expenses, but you are coasting because no more retirement savings are needed.