Lean FIRE is a financial independence, retire early (FIRE) movement that advocates for living a very frugal lifestyle in order to save as much money as possible and retire early. Lean FIRErs may live in small apartments, cook at home all the time, and forgo expensive hobbies.
The goal of Lean FIRE is to achieve financial independence with a relatively low amount of money. This means that Lean FIRErs can retire early without having to worry about running out of money.
There are many different ways to achieve Lean FIRE, but the general idea is to save and invest a large portion of your income. Some people aim to save 50% 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 and the rate of return you expect on your investments.
In addition to saving and investing, the Lean FIRE movement also emphasizes the importance of living a frugal lifestyle. This means cutting back on unnecessary expenses and finding ways to live more simply. By reducing your expenses, you can free up more money to save and invest, which will help you reach your Lean FIRE goals faster.
Here are some of the benefits of Lean FIRE:
- You can retire early and enjoy more free time.
- You can live a more simple and stress-free life.
- You can be more financially independent.
- You can have more control over your time and money.
Here are some of the challenges of Lean FIRE:
- It can be difficult to live a very frugal lifestyle.
- You may have to give up some of your favorite things.
- It may take longer to reach your financial independence goals.
Overall, Lean FIRE is a viable option for people who want to retire early and live a frugal lifestyle. However, it is important to weigh the pros and cons carefully before making a decision.