Fat FIRE by Expense Level
| Monthly | Annual | Fat FIRE Number | Level |
|---|---|---|---|
| $8,333 | $100,000 | $2,500,000 | Fat FIRE Threshold |
| $10,000 | $120,000 | $3,000,000 | Comfortable Fat |
| $12,500 | $150,000 | $3,750,000 | Very Fat |
| $16,667 | $200,000 | $5,000,000 | Ultra Fat |
| $25,000 | $300,000 | $7,500,000 | Obese FIRE |
What is Fat FIRE?
Fat FIRE is financial independence with a generous budget. It means retiring early without the lifestyle compromises that Lean FIRE requires—typically defined as $100,000/year or more in spending, which translates to a portfolio of $2,500,000 or higher.
The philosophy is straightforward: why sacrifice both your working years and your retirement lifestyle? If you're going to work hard to achieve financial independence, you might as well ensure you can enjoy it comfortably.
Fat FIRE is popular among high earners who don't want to choose between early retirement and lifestyle. Tech workers, doctors, lawyers, consultants, and entrepreneurs often target Fat FIRE because they have the income to make it achievable without an extreme timeline.
Critics call it "golden handcuffs"—the larger target means more years of work. Fat FIRE proponents counter that a few extra years of work is worth decades of comfortable retirement without watching every dollar.
Fat FIRE Numbers by Expense Level
Like all FIRE, the math is simple: annual expenses × 25. The numbers just get bigger:
| Monthly Spending | Annual Spending | Fat FIRE Number (4%) | Fat FIRE Number (3.5%) |
|---|---|---|---|
| $8,333 | $100,000 | $2,500,000 | $2,857,000 |
| $10,000 | $120,000 | $3,000,000 | $3,429,000 |
| $12,500 | $150,000 | $3,750,000 | $4,286,000 |
| $16,667 | $200,000 | $5,000,000 | $5,714,000 |
| $20,833 | $250,000 | $6,250,000 | $7,143,000 |
Every $1,000/month of spending requires $300,000 more in your portfolio. That extra $2,000/month for nice vacations costs $600,000 more to fund. Fat FIRE makes you honest about what your lifestyle actually costs.
The Fat FIRE Trade-off
Fat FIRE isn't free. The larger target typically means:
More Years Working
If Lean FIRE at $40,000/year takes you 15 years to achieve, Fat FIRE at $120,000/year might take 20-25 years—even with a higher income. You're saving more, but your target is also tripled.
Higher Required Income
Fat FIRE is most realistic for households earning $200,000+/year. At $100,000 income, saving enough for Fat FIRE while also living a Fat FIRE lifestyle is mathematically challenging. Something has to give.
The Comparison Equation
| Scenario | Target | Savings Rate | Approx. Years |
|---|---|---|---|
| Lean FIRE ($40,000/yr) | $1,000,000 | 50% | ~15 years |
| Regular FIRE ($80,000/yr) | $2,000,000 | 40% | ~20 years |
| Fat FIRE ($120,000/yr) | $3,000,000 | 35% | ~25 years |
The question is personal: would you rather have 5-10 more years of freedom at a lower lifestyle, or 5-10 more years of work for permanent comfort?
Fat FIRE Strategies
Maximize Income First
Fat FIRE is an income game more than a frugality game. Focus on:
- High-paying career paths (tech, medicine, law, finance, consulting)
- Entrepreneurship and business ownership
- Equity compensation (RSUs, stock options)
- Multiple income streams
- Geographic arbitrage during accumulation (high-income HCOL, then move)
Don't Lifestyle Inflate to Your Income
The trap for high earners: spending expands to match income. Someone earning $400,000 and spending $350,000 will never achieve Fat FIRE (or any FIRE). The math requires a gap between earning and spending. Target spending your Fat FIRE amount during accumulation, not your full income.
Tax Optimization Matters More
At Fat FIRE income levels, taxes can consume 30-40%+ of marginal income. Strategies include:
- Maxing tax-advantaged accounts (401k, backdoor Roth, HSA)
- Tax-loss harvesting
- Municipal bonds for taxable accounts
- Strategic Roth conversions in retirement
- Long-term capital gains management
Consider Semi-Retirement First
Many Fat FIRE aspirants hit their Coast FIRE number early, then downshift to consulting or part-time work. This bridges the gap—you escape the demanding career while your portfolio grows to the full Fat FIRE target.
When Fat FIRE Makes Sense
Fat FIRE is the right target if you:
- Live in a high cost-of-living area and plan to stay: $100,000/year is middle-class in San Francisco or Manhattan. Fat FIRE just maintains your current lifestyle.
- Have expensive hobbies: Golf club memberships, boats, frequent international travel, fine dining—these cost real money.
- Want a larger safety margin: Fat FIRE portfolios can weather bigger market downturns and unexpected expenses without lifestyle changes.
- Have healthcare needs: High-quality healthcare, especially in retirement, isn't cheap. Fat budgets accommodate premium plans and out-of-pocket costs.
- Want to support family: Helping adult children, aging parents, or grandchildren requires slack in the budget.
- Value experiences over early retirement: If you'd rather work 5 more years and travel first-class forever than retire earlier in coach, Fat FIRE aligns with your values.
Common Fat FIRE Mistakes
Underestimating True Expenses
High earners often lose track of spending. That $15,000/month lifestyle might actually be $20,000 when you account for everything. Track carefully before setting your target.
Ignoring Taxes in Retirement
Fat FIRE withdrawals can trigger significant taxes. A $120,000/year withdrawal isn't $120,000 of spending money after federal and state taxes. Plan for net spending, not gross withdrawals.
Lifestyle Inflation After FIRE
Some people discover that without work, they spend more (travel, hobbies, dining). Build in buffer for post-retirement lifestyle creep.
Comparison to Lean FIRE
Don't let Lean FIRE enthusiasts make you feel guilty. Different people value different things. Fat FIRE isn't greed—it's a conscious choice about how to spend your finite years.
Frequently Asked Questions
While there's no minimum, Fat FIRE is most achievable at household incomes of $200,000+/year. At this level, you can save 30-40% while maintaining a comfortable lifestyle. Higher incomes ($300,000+) make it faster. Lower incomes can still achieve Fat FIRE, but the timeline extends significantly.
It depends on income, savings rate, and starting point. A household earning $300,000 and saving 40% ($120,000/year) could accumulate $3,000,000 in roughly 15 years with market growth. Starting later or with lower savings rates extends the timeline to 20-30 years.
No, though tech compensation makes it easier. Doctors, lawyers, finance professionals, consultants, business owners, and senior executives all regularly achieve Fat FIRE. The common thread is high income plus reasonable spending discipline—not a specific industry.
Not necessarily. The 4% rule works the same regardless of portfolio size. However, Fat FIRE portfolios give you more flexibility—you could temporarily reduce spending if markets tank. Some Fat FIRE retirees use 3.5% for extra security, but it's personal preference rather than mathematical necessity.
This is the fundamental Fat FIRE question. Consider: Would you rather have 10 years of freedom at a simpler lifestyle, or 10 years of work followed by permanent comfort? There's no right answer. Some people take Lean FIRE and never look back; others would feel deprived. Know yourself.
No. Fat FIRE is about intentional choices, not greed. If $120,000/year is what you need to feel comfortable, that's a legitimate target. The FIRE community sometimes has an ascetic streak, but financial independence is personal. Define your own "enough."