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FINANCIAL GLOSSARY

FIRE movement

An approach to financial independence, sometimes linked to early retirement, built through a high savings rate and invested assets.

Definition

An approach to financial independence, sometimes linked to early retirement, built through a high savings rate and invested assets.

Why this concept matters

It connects spending, saving, target capital and greater freedom over work.

What to watch

FIRE is neither a financial product nor a guarantee: tax, inflation, healthcare, pensions and returns must be considered.

Simple example

A household may use FIRE to estimate the capital needed to cover part of its spending.

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