LeanFIRE vs FatFIRE vs BaristaFIRE vs CoastFIRE

FIRE stands for Financial Independence Retire Early. Financial independence is not one size fits all. The FIRE community has developed several variations that match different lifestyles, risk tolerances, and timelines. Here are some of the common types of FIRE plans, and a bit on how each approach works and who it fits best.

LeanFIRE: Minimalist Independence

Typical annual expenses: $20,000 to $40,000

Target portfolio: $500,000 to $1,000,000

LeanFIRE prioritizes freedom over comfort. Individuals practicing Lean FIRE achieve financial independence on a frugal budget, often through geographic arbitrage, minimalist living, or live in low cost of living areas.

Pros: Fastest path to independence. Achievable on median incomes. Forces intentional spending.

Cons: Little margin for error. Lifestyle may feel restrictive (not necessarily cup ramen every night :) ). Healthcare costs can consume large percentage of budget. May need to return to work if expenses increase.

Best for: Minimalists, those comfortable with frugality, people prioritizing time over consumption, those willing to relocate for lower costs.

Fat FIRE: Comfortable Independence

Typical annual expenses: $100,000 to $200,000+

Target portfolio: $2,500,000 to $5,000,000+

Fat FIRE means achieving independence without lifestyle compromise. Travel, dining, hobbies, and housing remain at pre-retirement levels or better.

Pros: Comfortable lifestyle indefinitely. Large margin for unexpected expenses. Room for lifestyle inflation. Can support family generously.

Cons: Requires high income or long accumulation period. May take decades to achieve. Higher spending means more things can cause issues with the plan or failure.

Best for: High earners, those unwilling to compromise lifestyle, people with expensive hobbies or family obligations, late starters with high savings capacity.

Barista FIRE: Partial Independence

Typical annual expenses: $40,000 to $60,000

Target portfolio: $500,000 to $1,200,000 (covers part of expenses)

Part time income needed: $10,000 to $30,000 per year

Barista FIRE means your investments cover most expenses while low stress part-time work fills the gap. The name comes from the idea of working at a coffee shop for spending money and health benefits, but can be from any part time job or income offset.

Pros: Achievable faster than full FIRE. Generally able to maintain quality of life and routine (mindful of inflation of expenses). Employer provides health insurance, saving potentially thousands. Psychological and real financial safety net.

Cons: Still requires some work. Part-time income not guaranteed. May not feel like real retirement.

Best for: People who enjoy some work but hate the grind, those needing employer health insurance, people seeking structure, those with expensive healthcare needs.

Coast FIRE: Time on Your Side

How it works: Save aggressively early and then let compounding do the rest. Stop saving for retirement but continue working to cover current expenses.

Example: A 30-year-old with $250,000 invested may let it grow to $2,000,000+ by age 60 without adding another dollar (assuming 7% real returns). They could then work a lower-paying job they enjoy, spending their entire paycheck since retirement is already funded.

Pros: Freedom to pursue passion careers. Lower stress since retirement is secured. Works especially well for young savers.

Cons: Requires early start. Market assumptions may not hold. Inflation uncertainty over long periods. Temptation to withdraw early.

Best for: Young people with early savings, those wanting career changes, people who want to pursue lower-paying meaningful work.

How to Choose Your Path

Ask yourself these questions:

• What annual spending level would make you genuinely happy AND feel financially secure?
• How important is a safety margin for healthcare, family needs, or lifestyle changes? (see last point above)
• Do you enjoy any form of work, or is full retirement and independence the goal?
• How old are you and how much time do you have for compounding?

Many people find their target evolves over time. Someone starting with Lean FIRE goals may shift toward Barista FIRE as they discover what matters to them. At the end of the day, it is great to have a goal and a target. Being flexible is a key with FIRE and in general. And while these are some common FIRE paths, one can carve out their own as well.