Posted on August 29, 2023 in guide

Fat FIRE is a financial independence, retire early (FIRE) movement that advocates for living a comfortable and luxurious lifestyle in retirement. Fat FIRErs may own a big house, take expensive vacations, and indulge in their hobbies.

The goal of Fat FIRE is to achieve financial independence with a much larger amount of money than Lean FIRE. This means that Fat FIRErs can retire early and still have the means to live the lifestyle they want.

There are many different ways to achieve Fat FIRE, but the general idea is to save and invest a very large portion of your income. Some people aim to save 75% or more of their income, while others are more comfortable with a lower savings rate. The amount you need to save will depend on your desired retirement lifestyle, the rate of return you expect on your investments, and your expected lifespan.

In addition to saving and investing, the Fat FIRE movement also emphasizes the importance of earning a high income. This is because Fat FIRErs need to save a lot of money in order to achieve their goals.

Here are some of the benefits of Fat FIRE:

  • You can retire early and enjoy a comfortable and luxurious lifestyle.
  • You can live a life of leisure and travel the world.
  • You can spend time with your loved ones and pursue your hobbies.
  • You can be more financially independent and have more control over your time and money.

Here are some of the challenges of Fat FIRE:

  • It can be difficult to save a large amount of money.
  • You may have to give up some of your favorite things.
  • It may take longer to reach your financial independence goals.

Overall, Fat FIRE is a viable option for people who want to retire early and live a comfortable and luxurious lifestyle. However, it is important to weigh the pros and cons carefully before making a decision.

Here are some of the differences between Fat FIRE and Lean FIRE:

  • Savings rate: Fat FIRErs need to save a much higher percentage of their income than Lean FIRErs.
  • Expected lifestyle: Fat FIRErs expect to live a more comfortable and luxurious lifestyle than Lean FIRErs.
  • Income: Fat FIRErs need to earn a higher income than Lean FIRErs.
  • Time to reach financial independence: It may take Fat FIRErs longer to reach financial independence than Lean FIRErs.

Ultimately, the best FIRE movement for you will depend on your individual goals and circumstances. If you want to retire early and live a comfortable and luxurious lifestyle, then Fat FIRE may be a good option for you. However, if you are willing to live a more frugal lifestyle, then Lean FIRE may be a better fit.