2025-03-02
The FIRE Strategy
Preparing to Fire
Building a strong financial foundation before pursuing FIRE ensures long-term stability and reduces the risk of financial setbacks. Before you can set a plan in motion, you need to know exactly where you stand financially. This means understanding how much you spend, how much you own, how much you owe, and how much you’re saving.
By calculating your annual expenses, net worth, and savings rate, you get a clear picture of your financial health and a realistic path to financial independence. This section will help you identify areas to improve, whether it’s cutting unnecessary expenses, increasing your savings rate, or prioritizing debt payoff. The goal is to set up a system that makes saving and investing for FIRE effortless, ensuring long-term financial success.