GLOSSARY · FIRE & EARLY RETIREMENT
Lean FIRE
Financial independence sized to a pared-down budget, usually your essential spending rather than your current lifestyle. The target is smaller and reached sooner, with less room for surprises.
Also called: lean financial independence
FORMULA
Lean FIRE number = essential annual spending ÷ withdrawal rate
COMPUTE IT WITH YOUR NUMBERS
LEARN IT PROPERLY
CHAPTER · RETIREMENT PLANNING FUNDAMENTALS · FOUNDATIONSDeciding What Retirement Means for YouCHAPTER · FIRE: FINANCIAL INDEPENDENCE RETIRE EARLY · DEEP DIVEWhat FIRE Is, and Its FlavoursRELATED TERMS
SOURCES
- Determining Withdrawal Rates Using Historical Data. Bengen, Journal of Financial Planning, 1994.