What Is FIRE (Financial Independence, Retire Early)?
What if you didn’t have to wait until 65 to start living life on your terms? That question is at the heart of FIRE—Financial Independence, Retire Early. It’s a movement built not just on the idea of retiring early, but on gaining the freedom to make choices that reflect your values, time, and priorities.
FIRE isn’t about quitting work and doing nothing. It’s about working because you want to, not because you have to. For some, that means leaving a high-stress job. For others, it means pursuing passion projects, traveling, or spending more time with family. The common thread is financial independence—the ability to step away from traditional work because your investments and planning give you options.
Now that we’re halfway through the year, this is the perfect time to pause and evaluate where you stand. Are you making progress toward your financial goals? Have you checked your 401(k) contributions? For 2025, the IRS increased the annual contribution limits to $23,500 for individuals 50 and under, and $31,000 for those above 50. If your employer offers a match, make sure you’re not leaving that free money behind. Adjusting your contributions now can give you a strong finish to the year.
Even if full FIRE feels out of reach, the mindset behind it is universally useful. Living below your means, saving consistently, and investing wisely are habits that build freedom over time. That could mean trimming expenses, building a solid emergency fund, or maxing out retirement accounts. These strategies may not seem flashy in the short term, but over the years, they create real momentum—and real options.
Reaching FIRE doesn’t require perfection, but it does require a plan. That starts with knowing your “FIRE number”—how much money you’d need to live off your retirement plan without relying on a traditional job. From there, your strategy might include maxing out retirement accounts, reducing debt, minimizing unnecessary expenses, or even building additional income streams. No matter where you are in the process, one of the most impactful steps you can take is working with a financial advisor to build a road map to achieve your short-, medium-, and long-term goals .
It’s never too early—or too late—to start planning for retirement. Whether you’re just getting serious about your savings or already deep into your FIRE journey, use this mid-year point as a chance to revisit your strategy. Review your accounts, increase your savings rate if possible, and make sure your investments still align with your goals. Even small changes today can lead to significant freedom tomorrow.
If you’re ready to explore what financial independence could look like for you, we’re here to help. Email info@shermanwealth.com with any questions or book a free consultation to start building a plan that puts you in control—not just someday, but starting now.