Personal finance dictionary: FIRE

What does FIRE mean?

Fire stands for Financial Independence/Retire early. It is generally split into the two terms as some people strive for one side and not the other. FIRE is a flexible term for people who have the goals of having enough money to be:

  • financially independent to live the lifestyle that they want without worrying about money.
  • mortgage & debt free.
  • financially stable enough to retire early IF they choose to do so. Not everyone who aims for FIRE wants to retire immediately. Rather they would like to have the ability to choose to work rather than have to work.