FIRE FAQs from Reddit: Top Questions Answered

1. What exactly is FIRE—and how do I get started?

Reddit’s r/financialindependence offers a simple framework:

“What is financial independence (FI)? … Having enough income (from investments, passive businesses, real estate, etc.) to pay for your reasonable living expenses for the rest of your life.”

Answer:
FIRE hinges on three core “knobs”:

• Reduce expenses through simple living

• Increase income, often via side hustles or career growth

• Invest wisely—typically in passive index funds or real estate

2. How much should I save to retire early?

Most FIRE fans suggest aiming for savings rates more aggressive than 50%. From those in the Know:

“We’re currently sitting at a net wealth of $1.6 M … The four main drivers … were saving around 60–70% of income”

Answer:

• LeanFIRE: Live on a tight budget, save 50‑75%

• FatFIRE: Maintain higher lifestyle standards with larger savings
  The benchmark often used: 25–30× your annual expenses, based on safe withdrawal rates (~3.5–4%)

3. What’s realistic: retiring in your 30s or 40s?

That question often sparks debate and personal stories:

A common query: “Is it actually possible for someone with an average income to retire early?”

Answer:
Yes—with discipline. Redditors consistently report success by combining:

• High savings rate (>50%)

• Investing in index funds

• Frugal lifestyle
  Over years, even average earners can build net worth in the high six to low seven figures. People have reached FIRE in their 30s or 40s by staying consistent

4. How do I manage medical insurance or access to funds post‑retirement?

A newcomer question from r/Fire:

“How do FIRE club members handle medical insurance? … do you simply shop for … a $1k/month plan?”

Answer:
No single solution. Options include:

• COBRA or marketplace ACA plans

• High-deductible plans paired with HSA savings

• Still working part-time or leveraging spouse’s coverage
  Post‑FIRE expenses and cash flow planning is critical. Most plan with conservative withdrawal buffers and side hustles to fill gaps.

5. What if I reach my FIRE number—will I actually be able to stop working?

Redditor fears echoed in r/financialindependence:

“The question I always come back to is ‘Will I have the guts to actually retire when I hit my savings goal?’”

Answer:
It’s not uncommon to experience emotional or identity concerns. FIRE is as much psychological as financial. Many plan “soft FIRE” or part-time work strategies to ease the transition. A strong “why”—like travel, hobbies, family time—helps reinforce the decision.

🔍 Additional Quick FIRE FAQs

Define your FIRE number: Choose a withdrawal rate—typically 3.5–4%—and multiply by your annual expenses to estimate the nest egg needed.

Lean vs. Fat vs. Coast vs. Barista FIRE: Tailor your approach based on spending habits, lifestyle expectations, part-time plans, and geographic arbitrage. See subtypes in FIRE movement descriptions.

Can average people do FIRE? Yes—through high savings rates (~60%), low-cost investing, side income, and disciplined lifestyle management.

🌟 Final Thoughts

The FIRE movement may seem radical—but it’s grounded in both simple math and emotional readiness. Whether you pursue early retirement, CoastFIRE, or simply want financial independence flexibility, it always involves:

• Building a high savings rate

• Reducing expenses smartly

• Investing consistently

• Planning for longevity and lifestyle shifts

Want a complete roadmap to help you take control of your finances and walk the FIRE path with confidence? Make Millions: Achieve Financial Independence & Build Generational Wealth walks you through every step—from saving and investing to mindset and legacy planning.