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FIRE

FIRE is an acronym standing for Financial Independence Retire Early. In order to achieve financial independence, it's important to invest a substantial portion of one's take home pay. Typically 50% or more is recommended. In order to do so, some lifestyle sacrifices are required. It's important to resist 'lifestyle inflation', where an increased pay cheque leads to increased spending. Often people who achieve financial independence don't choose to retire, but they have the freedom to pursue other careers or passions.

To work out how much you need to be investing to achieve FIRE, you can use our interest calculator to plan your savings.