FIRE Isn’t A Single Number: 7 Milestones on the Path to Financial Independence, Early Retirement

Discovering FIRE (Financial Independence, Retire Early) completely changed how I think about money. The promise of freedom was the fuel to my personal finance fire, or rather… FIRE.

But my initial understanding was black or white. Either you’re FIRE, or you aren’t.

Once I hit a particular number, I’d quit working. Forever. Quite enticing! But until then, it was all about accumulating as much as possible. A bit less enticing…

What I didn’t realize was how many significant milestones happen along the way, and the power each one brings. That all-or-nothing money mindset made financial independence feel impossible some days. Luckily, I stayed the course just long enough to see the magic in small, meaningful changes.

FIRE may take decades, but 1% can happen today!

7 Personal Finances Milestones on the Path to FIRE

You might hit these money milestones in a different order like funding your emergency fund before reaching a positive net worth but each one is powerful, no matter when it happens.

1. Breaking the Paycheck-to-Paycheck Cycle

You earn more than you spend, you’re breaking even! You’re not accumulating new consumer debt, like credit cards or buy-now-pay-later. 

Financial Power: Things are going in the right direction, no matter how small.

2. Small Emergency Fund

You’ve saved enough to handle a surprise expense or two. An unexpected cost is an inconvenience, sure, but no longer a potential disaster.

Financial Power: Emergencies don’t derail you, or cost you 29% in credit card interest.

3. Positive Net Worth

You have more assets (savings & investments) than liabilities (all types of debt). You own more than you owe.

Financial Power: You could pay off all debts, in theory. It’s not usually the best choice, but knowing you could is powerful.

4. Full Emergency Fund (& FU Money)

You have a few months of expenses saved. Enough to navigate unexpected change, like a job layoff, but also make intentional changes like ending an unhealthy relationship.

Financial Power: Peace of mind, and a layer of stability despite what curveballs may come your way.

5. First $100k Invested

You’ve hit six figures in investments! It may be in brokerage accounts, retirement, or even accounts like HSAs. The first $100k is nearly all contributions and very little market growth (usually). That’s about the change!

Financial Power: Compounding interest is working in your favor.

6. About $300k Invested

You have $300,000 invested across your investment portfolio. Getting to this net worth is slow, but with compounding interest on your side, each $100k will feel easier and faster.

Financial Power: This is “halfway” to becoming a millionaire! Not mathematically, no, but it’s probably about halfway time-wise.

7. CoastFI

Your portfolio could continue to grow to your retirement number by age 65, without contributing another dollar. Based on your current age & invested portfolio, compounding interest could grow your portfolio to your FIRE number.

Financial Power: You can intentionally earn less. Or spend more! Because you don’t need to contribute to retirement anymore. Though you certainly can 😉.

Final Thoughts

FIRE is a great goal, and a huge achievement. But so is saving your first dollar, hitting a positive net worth, and investing your first $100k.

Smaller financial milestones feel more doable, which makes them great for motivation. But there’s more to it, too. Each step gives you options, stability, and freedom. Which is why FIRE is so attractive in the first place!

Interested in working with a Money Coach? Schedule your free Discovery Call now!