Calculating Your FIRE Number

Your FIRE number is the total investment portfolio value you need to sustain your desired lifestyle indefinitely without working. It is the single most important number in your financial independence journey — and getting it right for Pakistan requires adjusting for our unique economic realities.

This chapter will walk you through calculating your personal FIRE number step by step. You will learn how to accurately estimate your annual expenses (including family obligations that Western calculators ignore), choose an appropriate withdrawal rate for Pakistan's inflation environment, and account for currency risk. We will also cover how to track your progress toward your FIRE number over time.

By the end, you will have a clear, personalized target to work toward — and a framework for adjusting it as your circumstances change.