In this article, we will analyze how many years does it take to achieve FIRE financial freedom? I wrote this article in order to have an overview so that each person can make his estimate FIRE.
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Note! To understand this article, you must understand the art of life FIRE. I wrote an article, Financial Independence, Retire Early (FIRE).
⚠️ The results and returns presented in this article are from the past and do not guarantee future returns. Investing and saving involve the risk of losing money.
Introduction: How many years does it take to achieve FIRE financial freedom?
One of the most frequently asked questions when discovering the FIRE movement is:
" How long does it take to become financially free? »
The answer is simple:
It depends mainly on your savings rate and the level of your spending.
Contrary to what many believe, although your salary is important, it is primarily your spending level and your level of investment that determines the speed at which you will achieve financial independence.
Let's see why.
The savings rate is the most important factor
The FIRE movement is based on a simple idea:
The more you save today, the less you will need to work tomorrow.
Two people can earn exactly the same salary, but achieve financial independence at very different times.
For example :
- Paul earns 5,000 CHF per month and spends 4,750 CHF.
- Sophie also earns 5,000 CHF but only spends 2,500 CHF.
At the end of the month:
- Paul saves 5 % of his salary.
- Sophie saves 50 %.
Even with the same income, Sophie will achieve financial freedom several decades before Paul.
Not 2 or 3 years before, we're talking about a difference of more than 15 years.
How many years does it take to become FIRE based on one's savings rate?
Assuming a portfolio invested in an ETF with an average return of approximately 7% per year, Here is an estimate widely used in the FIRE community.
| Savings rate | Estimated time to reach FIRE |
|---|---|
| 10 % | approximately 50 years |
| 20 % | approximately 37 years old |
| 30 % | approximately 28 years old |
| 40 % | approximately 22 years old |
| 50 % | approximately 17 years old |
| 60 % | approximately 13 years |
| 70 % | approximately 9 years |
And this estimate table only applies if you start with 0 CHF of initial investment.
For example, if you:
- has already invested 100,000 CHF
- earn 5,000 CHF per month
- expenses 3,500 CHF per month
- invested 1,500 per month, in an investment with an annualized return of 7%
- I want to become a FIRE with 3,500 CHF per month
The number of years to become FIRE is decreasing considerably.
In this case, it is possible to become FIRE in approximately 19 years.
And if you wish to reduce your standard of living to Becoming FIRE with only 2,500 CHF per month (this is possible in a country with a low cost of living), it is possible to become FIRE in 15 years.
These figures are estimates and vary depending on several factors. For example, market performance, your spending level, your future salary, and the return on your investments.
However, in these examples, we see that with saving and investing 40% of your income each month, with an investment yielding 7%, you can reach FIRE in 15-23 years.
If you start your FIRE journey at 20 and follow the FIRE steps, there is a good chance that around 35-43 years old you can become financially free.
Why salary isn't the most important
Many people think you need to earn 200,000 CHF per year to become FIRE.
In reality, that's not necessarily true.
Let's imagine two people.
Person A
Annual salary: 70,000 CHF
Expenses : 35,000 CHF
Savings rate: 50 %
Expenses once FIRE is complete: CHF 35,000
Person B
Annual salary: 150,000 CHF
Expenses : CHF 135,000
Savings rate: 10 %
Expenses once FIRE is complete: CHF 35,000
| Time to become FIRE | |
|---|---|
| Person A (average salary) | 15 years |
| Person B (High salary) | 42 years old |
Although the second person earns more than double, it takes them much longer to reach their goal.
Why? Because if you have a high income and high expenses, you only increase your consumption, but never your savings. And the more you earn, the more you spend.
This is what is called lifestyle inflation (lifestyle inflation).
This proves that becoming FIRE is not reserved for high earners! But especially for those who save and invest.
Compound interest accelerates progress
When we start investing, the first few years are often frustrating.
After five years of investing, your portfolio may seem to be growing very slowly.
Then, after a while, something changes. The gains begin to generate further substantial gains.
This is the effect of compound interest.
After fifteen or twenty years, it becomes common for your portfolio to earn more in a year than you yourself invest in the same year.
It is at this point that many investors see a real acceleration in the growth of their wealth. It's almost magical.
How to reach FIRE faster?
There are three main levers.
1. Spend less
Reducing unnecessary expenses allows you to immediately increase your savings rate.
For example, cancel subscriptions that are rarely used, remove some insurance policies that are not necessary, stop impulsive purchases or promote more economical transport.
It's not about living in deprivation, but about spending primarily on what truly brings happiness.
2. Increase your income
If you can increase your income, don't hesitate!
For example, you could:
- request a raise
- change jobs to a better-paying job
- develop a lucrative side business
- start a business
- monetize a skill or a passion
If you have the opportunity to have multiple sources of income, why deprive yourself of them?
The ideal is to increase your income but keep your expenses low.
3. Invest regularly
Money sitting idle in a bank account gradually loses value due to inflation.
In the long term, investing in a diversified portfolio generally leads to better returns.
Followers of the FIRE movement often favor a few index ETFs, such as an S&P 500 ETF or a global ETF (e.g., VT), because they are inexpensive, historically profitable, and widely diversified.
How do I calculate my FIRE moment?
I really like Moneyland's FIRE calculator1.
In my opinion, it is simple and the result is very concrete.
However, the result from this calculator should be taken as an estimate, not a precise result.
Is it absolutely necessary to aim for FIRE?
Each person is free to do what they want with their life; no one is forced to become frugal or minimalist.
For example, some people love their job and never want to stop working. And that's perfectly fine.
The goal of the FIRE movement is not to encourage everyone to retire at 40.
In truth, early retirement at 40 is what helped to popularize the FIRE movement, because retirement at 40 is very commercial.
But in my opinion, the true goal of the FIRE movement is freedom! For example:
- Being able to reduce your working hours without worrying about your finances
- Changing employers without the fear of having to pay bills for a few months
- To be free to travel for a few months while having passive income
- Starting your own business while generating passive income
- To be free to speak to society”I don't depend on anyone to live”.
In my opinion, receiving passive income allows me to live life to the fullest and reduce many professional worries. If I can have this freedom at 40-45 by saving on a few unnecessary purchases and investing every month now, why give it up?
Conclusion
The time it takes to achieve financial freedom depends primarily on your savings rate and the profitability of your investments. Your salary matters, but savings and investments are more important.
The more you invest a significant portion of your income and the more you reduce your expenses, the shorter your path to financial independence.
Of course, there's no magic formula. Financial markets are unpredictable, and past performance is no guarantee of future results. Investing involves the risk of losing money.
However, just note that if you:
- reasonable expenses
- Your income is adequate or high
- You save and invest 40% to 50% of your income each month in an S&P 500 ETF with very low fees (e.g., VOO ETF).
- You think you'll spend a reasonable amount once you're FIRE.
If the future performance of the S&P 500 resembles that of the past (before 2025), you could achieve financial freedom in 15-25 years, depending on your spending level once you reach FIRE.
If you are young and around 20-25 years old, you can become FIRE between 35 and 50 years old.
In truth, every franc invested today is a step closer to a life where you have more choices. And ultimately, that might be the true wealth of becoming FIRE.
How many years to achieve financial freedom?
FAQ: Everything you need to know about the FIRE movement and financial freedom
🔥 The basics of FIRE
What is the FIRE movement?
→ FIRE (Financial Independence, Retire Early) is a philosophy that aims to achieve financial independence to no longer depend on salaried employment. The idea? Save and invest enough to live off his passive income (dividends, capital gains, etc.) and to take early retirement.
What is the 4% rule?
→ The 4% rule states that if you Invest 25 times your annual expenses (e.g., 30,000 CHF × 25 = 750,000 CHF) in a S&P 500 ETF, you can withdraw 4% per year (i.e., 30,000 CHF) without depleting your capital for at least 25 years.
→ Example With 750,000 CHF invested, you can live off 30,000 CHF/year in complete serenity.
How do you calculate the number of years it takes to reach FIRE?
→ It all depends on your savings rate (annual savings / annual income).
→ Formula :
- Savings rate = (Income – Expenses) / Income × 100
- The higher your savings rate, The fewer years it will take you to reach FIRE.
→ Example With a savings rate of 50%, You can become FIRE by ~16-17 years old (based on a yield of 5%).
💰 Revenue, expenses and strategy
Why are expenses as important as income for FIRE?
→ Because The less you spend, the less you need to save. to achieve your goal.
→ Example :
- Marc (CHF 60,000/year, expenses CHF 30,000) → FIRE in 16.6 years.
- Jacques (CHF 120,000/year, expenses CHF 90,000) → FIRE in 31.9 years old (same annual savings, but higher expenses = need for more capital).
How to become FIRE faster?
→ 3 levers :
- Increase your income (salary, passive income, side hustles).
- Reduce your spending (minimalism, money-saving tips).
→ Example By increasing your savings rate of 30% to 50%, you can win 7 years of financial freedom ! - Invest more
Can FIRE be achieved in Switzerland?
→ Yes, but it's more difficult because of the high cost of living.
→ Solutions :
- Investing in global ETFs (e.g., S&P 500, MSCI World).
- Optimizing your 3rd pillar (tax deductions + growth).
- Considering living abroad (lower cost of living = need for less FIRE capital).
🌍 FIRE outside of Switzerland
Can you become FIRE while living abroad?
→ Absolutely ! By living in a country with lower cost of living (e.g., Greece, Thailand), you can:
- Reduce your annual expenses (e.g., 20,000 CHF/year instead of 40,000 CHF).
- Reaching FIRE faster (capital required divided by 2).
→ Example : With CHF 19,200/year in expenses, a capital of 480,000 CHF (19,200 × 25) is sufficient to apply the 4% rule.
📊 Tools and calculators
What tools should be used to calculate FIRE?
→ 3 recommended calculators :
- Networthify (in English, very precise).
- FIRE Moneyland Calculator (adapted to Switzerland).
- Tables from the Clever Frugalist (based on a yield of 5%).
Is it possible to have a precise FIRE date?
→ No, because too many variables are unpredictable:
- Future stock market returns.
- Inflation and cost of living.
- Tax or personal changes.
→ Solution Use calculators like an estimate, not an exact prediction.
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How does this blog live?
Overall, this blog lives on sharing a frugal and minimalist lifestyle.
For a question of transparency towards the readers. All recommended products are in order to make life cheaper, simpler and to promote the essentials.
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About me
I decided to create this blog to develop and help readers who are looking for a simpler and more economical life.
Compared to before, I was a person who consumed a lot until the day I realized that my consumption made me sadder and poorer 😑
Now I prefer the minimum of my needs to be happy and achieve my financial freedom.
Without realizingI started to focus on saving and investing to depend on a boss for as little time as possible and to speed up my personal projects.
As a result, I am getting richer in a way that I never imagined since I have an average salary in Switzerland.
It is for this purpose that I decided to create this blog. In order to share and learn with other people who seek freedom and simplicity 😉
Are you rather minimalist or frugal Jonny?
I am as minimalist as I am frugalist. However, there are situations where I lean more towards an art of life.
To conclude, I think the most important thing is to feel comfortable in your lifestyle 😊
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