> For the complete documentation index, see [llms.txt](https://fiindia.gitbook.io/wiki/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fiindia.gitbook.io/wiki/investments/investing-for-fire.md).

# Why invest for FIRE?

Enter the real world, where inflation cannot be ignored. Inflation is the phenomenon where Rs. 100 ten years from now buys you much less of (almost) anything than Rs 100 now - less wheat, less rice, less house, less car, less chocolate, less education, less healthcare, less travel etc. In such a scenario, even if you have a savings rate of about 50% as a 25 year old, that 1x you saved when you were 25 is worth much less than 1x by the time you are, say 50.

How much less? 

{% hint style="danger" %}
**If inflation were 7% then in 25 years you need Rs 6000 to buy something that costs Rs 1000 today.**
{% endhint %}

That Rs 100 you have today is worth only Rs 16.3 (ie, after 25 years you can only buy stuff that costs Rs. 16.3 today with a 100 rupee note) after 25 years if the inflation were 7% (the rate of inflation is an example and not a prediction). A whopping 6x lesser. Clearly that isn't fun. It means that to save one years of expenses when you are 50, you’d need to save 6x of that sum when you are 25. That is going to be hard. Very, very hard. Inflation is not to be trifled with.

{% hint style="danger" %}

## Saving is not enough

**You need to *****invest***** to maintain your wealth against inflation**
{% endhint %}

This is where investments come in. While saving money each month is good, inflation is going to eat into its value and over longer periods make it necessary that we not just save money, but also invest it in products/avenues that provide returns that keep up with inflation or better.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://fiindia.gitbook.io/wiki/investments/investing-for-fire.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.