Whether you love your job or hate it, there's a good chance you probably hope to retire one day so you can spend more time with your family or pursuing your interests. But traditional retirement ages -- usually in your early to mid-60s -- can feel unbearably far away.
However, you may not have to wait that long if you're willing to make significant sacrifices in the present. Some Financial Independence, Retire Early (FIRE) adherents manage to leave the workforce in their 40s, or even their 30s. But plenty more burn out on the demanding savings strategy. Here's how to know if it's right for you.

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What is the FIRE movement?
The FIRE movement centers around saving aggressively and leaving the workforce far earlier than is typical. Adherents usually set a savings target -- a FIRE number -- and retire as soon as they reach it. Most save at least 50% of their annual income, and some save as much as 75% of their earnings.
The high savings rate is common across all types of FIRE, but FIRE numbers can vary wildly based on a person's location, how long they expect their retirement to last, and what kind of lifestyle they hope to have. Some common subsets of FIRE include:
- Lean FIRE: Lean FIRE usually involves planned annual expenditures of about $40,000 or less, adjusted for inflation, in retirement.
- Fat FIRE: Fat FIRE involves a more luxurious retirement lifestyle with annual expenditures typically exceeding $100,000.
- Barista FIRE: Barista FIRE assumes you'll work a flexible, part-time job during your retirement, such as being a barista.
- Coast FIRE: Coast FIRE involves saving aggressively until you've reached a certain target, at which point you continue to work but stop setting aside new money for retirement. This strategy typically involves a more traditional retirement age.
Figuring out which type of FIRE strategy most appeals to you is the first step in calculating your FIRE number. Once you have an approximation of how much you'll need to cover your annual expenses in retirement, you can choose a FIRE number.
Some people go with 25 times their estimated annual expenses. But if you plan to retire before 62, you may be better off using a higher number like 33 times your annual expenses. So, for example, if you planned to spend $60,000 per year, adjusted for inflation, in retirement, your FIRE number would be $1.98 million.
Then, you'd save as much as possible -- ideally half your annual income -- until you've reached your goal. After that, you can sit back and enjoy retirement.
FIRE isn't for the faint of heart
The FIRE movement sounds appealing, but only a select few pull it off. A big part of that has to do with the sacrifices the strategy requires in the present. It's not easy to save half your paychecks. Many people wind up saying no to fun activities in the present and then burn out because they can't sustain that kind of lifestyle year after year.
FIRE also involves taking some bigger risks. No one knows exactly how long their retirement will last or how much they'll need to cover their expenses after leaving the workforce. A longer retirement introduces even more uncertainty. A serious illness or a natural disaster could completely derail your budget. If this happens, you might have to return to work, which could be challenging if you've already been retired for decades.
This isn't to say it can't work out, but it's important to be prepared for the challenges that come with this aggressive retirement strategy. You may also want to have a backup plan for what you'll do if FIRE isn't sustainable for you.
If you don't think it's a good fit for you, that's OK. You don't need to save half your paychecks to retire early. Even if you only manage to save 20% of your paychecks, you're on the right track. You may not be able to retire in your 40s, but if you stick with it and invest your savings, you can still position yourself to leave the workforce earlier than usual.