My FIRE Flavour is a bit different. Today, I am staying in a villa on Koh Samui. Water trickles from a fountain above the pool. I’ve just had a morning walk and an iced latte at a local Thai drinks shop. I did not need to work today. It is far removed from my previous life. This is my flavour of FIRE – it may not be yours.
There are actually several “flavours” of FIRE, each catering to different personalities, income levels and lifestyle goals.
The goals are varied, depending on how early you retire, what you do when you retire, how you live… just to name a few.
Let’s break down the five most common types.
FIRE Flavour 1 : LeanFIRE
Adherents to LeanFire retire earlier, meaning that they generally have a smaller investment portfolio but have tighter control over their expenses due to this. They prioritise their freedom over the finer things in life. By limiting their expenses, they keep their FIRE number low, thus achieving earlier retirement.
Example: Someone who can live on $25,000–$40,000 per year, living in a small home, cooking at home,
Pros:
- Enjoy retired life earlier
- Every dollar spent is done mindfully and with intention
Cons:
- Requires extreme discipline over expenses
- Minimalist lifestyle may not suit everyone
Further Commentary
When I worked in corporate life and my company started getting obsessed with organisation charts, KPIs and stretch goals as well as office politics, it really got me down and I can see the appeal of reaching retirement and not having to deal with this a lot earlier. It may not be for me, but it could suit a lot of people for whom vanilla FIRE seems unreachable. I think my travel and tastes may have prevented me fully adopting this.
FIRE Flavour 2 : FatFIRE
Adherents to FATFire love the finer things in life: love their holidays and their fine dining. All of this is done without the need to work.
Example: A high income earner may be able to retire on $100,000+ per year, but this would require a $2.5 million investment portfolio, or more.
Pros:
- Enjoy the lifestyle you are used to
- With a greater annual withdrawal amount, you have greater flexibility on how you spend and weather anything unexpected.
Cons:
- To get this, you generally require a large income
- You will retire later than other FIRE devotees
Further Commentary
FatFIRE allows you to live just the way you are used to, with the addition of not working. It is difficult to achieve without a higher income and careful management of your investments. Personally,I preferred an earlier retirement to a greatly delayed.
FIRE Flavour 3 : BaristaFIRE
BaristaFIRE devotees don’t actually stop working but work part-time to cover the shortfall and in exchange, semi-retirement comes earlier. The part-time work doesn’t need to be from their main career and can be something which has less stress.
Example: A person’s FIRE number is $40,000 a year but their annual investment withdrawal is limited to $25,000 and they pick up a part-time job covering $15,000.
Pros:
- Can enter semi-retirement earlier
- Work keeps your brain active
Cons:
- It still is work
- Part-time jobs are generally more difficult to find
Further commentary
BaristaFIRE could be the right move for some people, providing less stress much earlier. I myself do wonder though if it really is a true flavour of FIRE because you still may need to deal with the stress and other aspects of work.
FIRE Flavour 4 : CoastFIRE
CoastFIRE aficionados have crafted their investment portfolio such that the portfolio takes care of itself and provides enough growth in order to reach financial independence. Expenses are kept in check and do not undergo massive increases. They can work enough to cover expenses then just “coast along.”
Example: A 35-year-old, who has started work as a teenager, and started investing from a young age. They already have $300,000 invested, and they expect average market growth of 7% per year. They don’t need to add any more. By age 65, their portfolio will naturally grow to over $1 million.
From now on, they only need to work enough to cover their lifestyle expenses, not retirement savings. They only are doing work they enjoy
Pros:
- Worrying about money is no longer an issue
Cons:
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Requires strong early saving and investing habits
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Assumptions on market performance need to be accurate, as you may not be able to weather abnormal periods of downturn
Further commentary
CoastFIRE is not for everyone and is easier if you start on the journey when you are young.
FIRE Flavour 5 : SlowFIRE
SlowFIRE prioritises work–life balance, hobbies and experiences, emphasising a slower saving/investment lifestyle, delaying retirement.
Example : Someone who enjoys living in the moment, aims for 25 years saving to reach their FIRE goal.
Pros:
- Balanced and less austere
- Still adheres to a FIRE plan while enjoying life
Cons:
- Delays retirement
- Requires extreme monitoring of expenses
Further commentary
Not everyone has the savings and investments to reach FIRE quickly and this approach allows you to live well while still having a FIRE plan.
Which FIRE Path is Right for You?
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If you crave freedom now and are willing to live small, LeanFIRE might be your ticket
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If you want zero compromises, FatFIRE is the ultimate
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If you like the idea of part-time work keeping you sane, BaristaFIRE fits well
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If you’ve already been saving and investing, CoastFIRE lets you relax sooner
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And if you love living in the moment, SlowFIRE might be perfect
Action
Find the FIRE for you; have a think about how it may work.
