Sam Dogen is one of the pioneers of the FIRE movement — short for financial independence, retire early.
"It's having enough in investments and passive income to cover your basic living expenses," Dogen says.
By the time he left his investment banking job in 2012 at age 34, Dogen had exactly that — $80,000 a year in passive income, plus a $3 million net worth.
If you think you can live on $40,000 a year, multiply by 25, and you need to save $1 million.
Under Dogen's model, you haven't achieved FIRE until you've saved the $1 million, built $40,000 in annual passive income, or some combination of the two.
Persons:
Sam Dogen, Dogen, you've, haven't
Organizations:
FIRE