One of the primary pillars of FIRE is to save a significant portion of your income, typically between 50-70% of what you earn, although the amount can vary depending on your goals. Instead of spending a majority of your earnings on discretionary items, FIRE advocates focus on putting most of their income into savings and investments. This requires prioritizing saving over immediate gratification and finding ways to live well within your means.

Saving alone isn’t enough to achieve financial independence; investing is crucial to growing your wealth over time. The core of the FIRE strategy involves putting your money to work by investing in assets that can grow in value and generate passive income.

Living a frugal lifestyle is another cornerstone of FIRE. This doesn’t mean living in deprivation, but rather making mindful spending choices and cutting down on unnecessary expenses. Adopting a minimalist and intentional lifestyle allows you to maximize savings and reduce the amount of money you need for retirement.

FIRE requires strong financial discipline and long-term commitment. You must consistently save, invest, and control spending over several years. It’s about delaying gratification and making smart financial decisions that compound over time.