Why Track at All?
Financial independence isn't a single moment. It's a gradual shift in your relationship with money. One day you realize you could quit tomorrow and be fine. But that realization doesn't happen overnight.
Tracking your progress does three things:
- Makes abstract goals concrete. "I want to be financially independent" becomes "I'm 34% of the way to $1.2M."
- Reinforces good habits. Each check-in reminds you that saving works. Compound growth becomes visible.
- Prevents drift. Without tracking, it's easy to let lifestyle inflation eat your progress.
You don't need to obsess over daily market movements. But ignoring your finances entirely means you won't notice problems until they're expensive to fix.
What to Track
Track everything that contributes to your FIRE number. Most people organize by account type:
- Retirement accounts (401k, IRA, Roth) - Tax-advantaged, typically the core of a FIRE portfolio
- Taxable brokerage - Accessible before 59.5, important for early retirement bridge
- High-yield savings - Emergency fund and short-term needs
- Real estate equity - If you plan to access it (see FAQ)
- Other (HSA, 529, crypto, etc.) - Whatever else you're counting
Why separate buckets? Different accounts have different growth rates and access rules. A dollar in your 401k isn't the same as a dollar in savings. Tracking separately helps you plan.
What NOT to track: Cars, furniture, and other depreciating assets. They won't fund your retirement. Track investable assets only.
The Milestone Framework
Raw percentages don't tell the whole story. Each milestone represents a psychological shift in your relationship with money:
25% - Foundation
You've built real momentum. The hardest part—starting—is behind you. Compound growth is starting to become visible in your balance.
50% - Halfway
Your investments now earn roughly as much as you contribute. The portfolio is pulling its weight alongside your income. This is when FIRE starts feeling inevitable rather than aspirational.
75% - Coast Territory
Even without new contributions, compound growth could carry you to FI eventually. You have options. Many people consider Coast FIRE at this point—working just enough to cover expenses while investments grow.
90% - Final Stretch
One good market year could push you over. The destination is visible. This is when you should start planning what comes next: What will you actually do when work becomes optional?
How Often to Check In
Monthly works for most people. Frequent enough to stay aware, infrequent enough to avoid obsession.
Quarterly is fine if you prefer less maintenance or tend to check too often.
The key is consistency. Pick a schedule and stick to it. Irregular tracking makes it hard to spot trends.
What to do during a check-in:
- Log current balances for each account
- Note total progress toward your FIRE number
- Compare to last month/quarter (expect volatility)
- Adjust contributions if income changed
Don't skip check-ins when markets are down. Tracking through volatility shows your true progress over time. A down month followed by continued contributions often marks the best buying opportunities in hindsight.
Growth Rate Expectations
When projecting future progress, use realistic assumptions:
| Asset Type | Expected Return | Notes |
|---|---|---|
| Stock index funds | 7% | Real return (after inflation) |
| Bond funds | 3-4% | Lower but more stable |
| High-yield savings | 2-4% | Varies with interest rates |
| Real estate | 3-5% | Appreciation only, excluding rental income |
These are long-term averages. Individual years vary wildly—anywhere from -30% to +30% for stocks. That's why you track progress over time, not obsess over monthly changes.
Conservative beats optimistic. If you assume 10% returns and get 7%, you'll be disappointed and behind schedule. Assume 7%, get 10%, and you retire early. Under-promise, over-deliver—to yourself.
Common Questions
Should I include my home equity?
Only if you plan to tap it. Downsizing? Include it. Reverse mortgage? Include it. Living there forever? Track it separately—it won't generate retirement income.
Many people track "investable assets" and "total net worth" as separate numbers. Both are useful.
What if my balance drops?
Log the real number. Market downturns are normal and expected. Hiding from bad months doesn't make them go away.
Tracking through volatility shows your true progress over time. It also reminds you that you kept investing through tough periods—which is exactly what you should do.
Is my data private?
If you use our Progress Tracker, yes—all data stays in your browser's local storage. Nothing goes to any server. You can export to CSV for backup or delete everything through browser settings.
How do I calculate my FIRE number?
Annual expenses × 25. That's the amount that can sustainably generate your living costs at a 4% withdrawal rate. Use our calculator to find yours.
Tracking isn't about achieving perfect optimization. It's about staying aware, celebrating real progress, and catching problems early. Start simple: know your number, check in monthly, and watch compound growth do its work.
→ Start tracking with our Progress Tracker
→ Calculate your FIRE number
→ New to FIRE? Start with the basics
→ Learn about the 4% rule