FIRE (Financial Independence, Retire Early)

The FIRE (Financial Independence, Retire Early) movement encompasses several strategies, each tailored to different financial goals, lifestyles, and timelines. 

Watch The Fifth Person: Which FIRE is Best For You?

Traditional FIRE (Missed the Boat)

• Goal: Save enough to fully retire early, living entirely off investment income or withdrawals.
• Approach: Aggressively save 50–70% of income, invest in assets (e.g., stocks, real estate), and aim for a nest egg 25–30x annual expenses (based on the 4% safe withdrawal rule).
• Lifestyle: Complete retirement from work, with no need for earned income.
• Example: Save $1.25 million to cover $50,000 annual expenses and retire at 40.
  
  

Lean FIRE (Possible but don't want to to sacrifice lifestyle)

• Goal: Achieve financial independence with a minimalist lifestyle, focusing on low expenses.
• Approach: Save enough to cover basic needs, often requiring a smaller nest egg than Traditional FIRE.
• Lifestyle: Frugal living, prioritizing essentials over luxuries, with little financial cushion.
• Example: Save $500,000 to support $20,000 annual expenses.
  
  

Fat FIRE (Impossible)

• Goal: Retire early with a comfortable or luxurious lifestyle, supported by a larger nest egg.
• Approach: Save significantly more than Traditional FIRE to fund higher expenses, travel, or hobbies.
• Lifestyle: Financial freedom with room for discretionary spending and flexibility.
• Example: Save $2.5 million for $100,000 annual expenses.
  
  

Barista FIRE (My Pursuit)

• Goal: Achieve partial financial independence, supplementing investment income with part-time work.
• Approach: Save enough to cover part of expenses, then work a low-stress job (e.g., barista) to bridge the gap.
• Lifestyle: Semi-retirement with a balance of leisure and light work, often with benefits like health insurance.
• Example: Save $500,000 to generate $20,000/year, then earn $20,000 from part-time work to cover $40,000 expenses.

Coast FIRE (Missed the Boat)

• Goal: Save enough early so investments grow to fund retirement later without further contributions.
• Approach: Reach a “Coast number” where compound growth over time meets retirement needs, then work only to cover current expenses.
• Lifestyle: Less savings pressure, with work continuing but not for retirement savings.
• Example: Invest $250,000 at 30, which grows to $1 million by 65, while working to cover living costs.
  
  

Geo-Arbitrage FIRE (Something to consider when older)

• Goal: Achieve FIRE by relocating to a lower-cost-of-living area or country to stretch savings further.
• Approach: Save for FIRE, then move to a place where expenses are significantly lower.
• Lifestyle: Maintains a comfortable lifestyle with less savings due to reduced costs.
• Example: Save $800,000 and move to a country where $32,000/year supports a high quality of life.
  
  

I am more inclined to Barista FIRE Lifestyle as it allows me to use the extra time from part-time work to pursue passions, hobbies, or side projects that bring fulfillment, whether it’s travel, volunteering, or learning new skills.

I can achieve partial financial independence by saving enough to cover a portion of expenses, then work a low-stress, part-time job to supplement income.

The goal is to enjoy a semi-retired lifestyle earlier balancing work and leisure while relying on investments for some financial support.