Learn Everything About FIRE
Financial Independence, Retire Early (FIRE) is a movement built on a simple idea: save aggressively, invest wisely, and gain the freedom to work only if you want to. But there are many flavors of FIRE — find the one that fits your life.
What is FIRE?
FIRE stands for Financial Independence, Retire Early. The movement grew from the 1992 book Your Money or Your Life by Vicki Robin and was popularized in the 2010s by bloggers like Mr. Money Mustache.
The core idea: aggressively save 40-70% of your income, invest in low-cost index funds, and retire decades earlier than traditional retirement age by living off your portfolio's returns using the 4% safe withdrawal rate.
The FIRE Number is the portfolio size you need to retire. It's calculated as 25× your annual expenses (which equals the 4% rule):
FIRE Number Formula
Annual Expenses × 25 = FIRE Number
Or: Annual Expenses ÷ 0.04
FIRE Types Comparison
| Aspect | 🌱 Lean FIRE | ☕ Barista FIRE | 🔥 Regular FIRE | 💰 Fat FIRE | 🏄 Coast FIRE |
|---|---|---|---|---|---|
| Annual Expenses | < $40,000 | $40,000–$60,000 | $60,000–$100,000 | $100,000+ | Any |
| FIRE Number | < $1M | $1M–$1.5M | $1.5M–$2.5M | $2.5M+ | Variable |
| Work After FIRE | None | Part-time | None | None | Full/Part-time until retirement |
| Time to Achieve | 10–15 yrs | 12–18 yrs | 15–25 yrs | 20–35 yrs | Variable |
| Savings Rate Needed | 50%+ | 40–50% | 30–50% | 40–60% | High early, low after |
| Lifestyle Constraints | High | Moderate | Low | Very Low | Moderate |
| Market Risk | High | Medium | Medium | Low | Low (long horizon) |
Explore Each FIRE Type
Lean FIRE
Freedom through frugality
Up to $40K/yr
Lean FIRE means achieving financial independence on a minimal budget — typically under $40,000 per year. Lean FIREs prioritize freedom over luxury, often living in low cost-of-living areas, embracing minimalism, and optimizing every dollar. The lower FIRE number makes it achievable much faster.
Pros
- Smallest FIRE number — easiest to achieve
- Maximum freedom from the 9-5 grind
- Forces creative, intentional living
Cons
- Little buffer for unexpected expenses
- May need to return to work in market downturns
- Healthcare costs can strain a lean budget
Best for:
Single individuals, minimalists, digital nomads, those willing to geo-arbitrage or live in low cost-of-living areas
Barista FIRE
Part-time work, full-time freedom
$40K–$60K/yr
Barista FIRE (named after Starbucks barista health benefits) means building a portfolio large enough to cover most expenses, then supplementing with enjoyable part-time or flexible work. You're not fully retired — but you've escaped the full-time grind and work on your terms.
Pros
- Smaller portfolio needed than full FIRE
- Maintain social engagement and purpose
- Employer benefits (especially healthcare)
Cons
- Still technically working
- Part-time income may not always be available
- Healthcare may still be inadequate
Best for:
People who want to leave stressful careers but still enjoy some work, those who need healthcare coverage, early FIREs who want a buffer
Regular FIRE
The classic path to financial independence
$60K–$100K/yr
Traditional FIRE — full financial independence on $60,000-$100,000 per year. You accumulate enough to never need to work again, living comfortably on 4% annual withdrawals. This is what most people mean when they say FIRE.
Pros
- Comfortable lifestyle without work
- Full flexibility over time
- Healthcare funded from portfolio
Cons
- Requires a substantial portfolio ($1.5M-$2.5M)
- Takes longer to achieve than Lean FIRE
- Requires sustained high savings rate
Best for:
Couples, families, those in high cost-of-living areas, people who want a comfortable retirement without extreme frugality
Fat FIRE
Retire abundantly, never compromise
$100K+/yr
Fat FIRE means retiring on $100,000+ per year — living lavishly while never working again. Fat FIREs build portfolios of $2.5M-$10M+ and enjoy travel, dining, luxury experiences, and financial security. It requires high income and high savings rates, but offers the most comfortable retirement.
Pros
- Maximum lifestyle flexibility and comfort
- Large buffer for healthcare, dependents, luxury
- Resilient to market downturns
Cons
- Requires a very large portfolio ($2.5M+)
- Typically requires high income to achieve
- May take 20-30 years even with high savings rate
Best for:
High earners, those with dependents, people with expensive hobbies or health conditions, those who want maximum security and comfort
Coast FIRE
Save aggressively now, coast to retirement
Any amount
Coast FIRE means saving enough early in your career that — without any further contributions — your investments will grow to your FIRE number by traditional retirement age. Once you've hit your Coast number, you only need to earn enough to cover current expenses.
Pros
- Removes retirement saving pressure early
- Can downshift to lower-paying but fulfilling work
- Compound growth does the heavy lifting
Cons
- Still working until traditional retirement age
- Requires discipline to not touch investments
- Inflation risk over long coast period
Best for:
People who want to reduce financial stress without fully stopping work, career changers, parents, those who started saving early and want to pivot
The Foundation: The 4% Rule
The 4% rule is the cornerstone of FIRE planning — it tells you how much you can safely withdraw from your portfolio each year without running out of money over a 30-year retirement. Understanding it is essential before you FIRE.
Read the Full 4% Rule Guide