Calculating Your FIRE Number: The Rule of 25 Explained

Calculate your FI number using the Rule of 25 by multiplying your annual expenses by 25.

Consider two lifestyle targets: Lean FI (minimum survival costs) and Standard FI (current lifestyle).

Adjust your calculations for the UK context, aiming for a 3.3% withdrawal rate if planning to retire early.

Use tools like ISAs, SIPPs, and low-cost index funds to maximise your savings and reach your FI number faster.

Start by calculating your Lean FI number immediately to begin your journey to financial independence.