Why savings rate matters more than income
Income helps, but savings rate is the engine of FIRE. A higher savings rate means you invest more each month while also needing less to fund your lifestyle, which lowers your FIRE number at the same time.
How to increase your savings rate
The biggest gains usually come from housing, transport, food, and recurring subscriptions. Automating ISA and pension contributions on payday makes the higher savings rate happen before spending decisions get in the way.
UK tax wrappers can boost your effective savings rate
Stocks and shares ISAs shelter investment growth from UK tax, while SIPPs and workplace pensions can add tax relief and employer contributions. Those wrappers can increase the amount invested without requiring the same amount of extra take-home pay.