There's No One Way to FIRE
FIRE isn't a single destination—it's a spectrum. Your "number" depends entirely on the life you want to live. Someone who's happy in a modest apartment with simple pleasures needs far less than someone who wants to travel extensively and eat out regularly.
Neither approach is wrong. What matters is honesty with yourself about what you actually want, not what sounds impressive or virtuous.
The FIRE community has developed several terms to describe different approaches. Understanding them helps you find your target and connect with others on a similar path.
Lean FIRE
Target spending: Under $40,000/year (varies by location and family size)
The philosophy: Minimize expenses through intentional living. Own less. Need less. Retire faster.
What it looks like: Living in a lower cost-of-living area, possibly abroad. Cooking most meals at home. Driving a reliable used car (or no car). Modest housing. Finding fulfillment in experiences and relationships rather than purchases.
Who it's for:
- Minimalists who genuinely enjoy a simpler lifestyle
- People in low cost-of-living areas where $40,000 goes far
- Those who prioritize time freedom over material comfort
- Anyone who wants the fastest possible path to FI
Trade-offs: Less buffer for unexpected expenses. May feel restrictive if your natural spending level is higher. Healthcare costs can be challenging in countries without universal coverage.
Approximate FIRE number: $1,000,000 (at $40,000/year spending)
Coast FIRE
Target: Enough invested now to reach traditional retirement (age 65) without saving another dollar
The philosophy: Front-load your savings in your 20s and 30s, then let compound growth do the heavy lifting. You still need income to cover expenses, but the retirement savings pressure is off.
What it looks like: Working a lower-stress job that covers current expenses. Taking a pay cut for better work-life balance. Pursuing passion projects without worrying about their earning potential. Maybe going part-time.
Who it's for:
- People who don't hate work but hate the grind
- Those who want flexibility without fully retiring
- Anyone burned out from high-income/high-stress careers
- Parents who want more time with kids without stopping work entirely
Trade-offs: You're not fully financially independent yet—you still need income. If you stop working entirely before your investments grow, you'll run out. It's a middle ground, not an endpoint.
The math: If you need $1,500,000 at 65, and you're 35, you need about $375,000 invested today (assuming 5% real returns over 30 years). Hit that number and you're "coasting."
Barista FIRE
Target: Enough invested to cover most expenses, with part-time work filling the gap
The philosophy: Semi-retirement. Your portfolio covers 60-80% of your expenses; a part-time job covers the rest. Named after the common strategy of working at Starbucks part-time for health insurance (in the US).
What it looks like: Working 15-25 hours per week at something enjoyable. Maybe your previous career part-time, or something completely different. Teaching yoga. Barista work. Seasonal jobs. Consulting a few hours a week.
Who it's for:
- People who enjoy some work but want freedom from full-time schedules
- Those who want to retire sooner than full FIRE allows
- Anyone who needs employer-subsidized health insurance
- People who'd be bored with zero work
Trade-offs: You're relying on being able to find and keep suitable part-time work. That might not always be available. Market downturns could require picking up more hours.
Example: $50,000/year expenses, $1,000,000 invested. The portfolio provides $40,000/year (4%), part-time work provides $10,000/year.
Chubby FIRE
Target spending: $80,000-$120,000/year
The philosophy: Comfortable without being lavish. The middle ground between lean frugality and fat luxury.
What it looks like: A nice home (not a mansion). Regular travel (not first class). Eating out regularly (not exclusively). A reliable newer car. Ability to help family members occasionally. Not counting every dollar, but not being wasteful.
Who it's for:
- Middle-class families who want to maintain their lifestyle
- People who find lean FIRE too restrictive but don't need luxury
- Those in moderate cost-of-living areas
- Anyone seeking balance between timeline and comfort
Trade-offs: Takes longer than Lean FIRE—typically requiring higher income or longer career. But provides more cushion and flexibility.
Approximate FIRE number: $2,000,000-$3,000,000
Fat FIRE
Target spending: $150,000+/year (often $200,000-$300,000+)
The philosophy: Financial independence without lifestyle compromise. Live the same way you would if money weren't a factor.
What it looks like: Premium housing in desirable locations. Business class flights. Fine dining. Luxury vehicles. Generous charitable giving. Helping family financially. Hiring help for tasks you don't enjoy.
Who it's for:
- High earners (doctors, lawyers, tech executives, successful entrepreneurs)
- People who genuinely enjoy and use luxury goods and services
- Those in high cost-of-living areas (SF, NYC, London)
- Anyone who'd rather work longer than reduce lifestyle
Trade-offs: Requires a much higher FIRE number, which typically means a longer career or very high income. Can take 15-25+ years even with excellent earnings.
Approximate FIRE number: $4,000,000-$7,500,000+
Which Is Right for You?
There's no correct answer here. The "best" type of FIRE is the one that matches your actual values—not what sounds impressive, and not what you think you should want.
Ask yourself:
- What do I actually spend money on that brings me genuine happiness?
- What do I spend money on out of habit or social pressure?
- How do I feel about my current lifestyle? What would I change with unlimited money?
- How important is retiring soon versus retiring comfortably?
- Do I like some aspects of work? Would I be happy with zero obligations?
One useful exercise: Track your spending for 3 months without changing anything. Just observe. You might be surprised where your money actually goes versus where you think it goes.
Then use a calculator to see how different spending levels affect your timeline:
→ Calculate your FIRE number
→ See when you can retire
Remember: You can always adjust. Many people start with ambitious Lean FIRE goals, realize they'd prefer more comfort, and shift to Chubby FIRE. Others discover that simplicity makes them happier than they expected.
The point isn't to pick a label and stick to it forever. The point is to understand your options and make intentional choices about your money and your life.