Coast FIRE vs Lean FIRE vs Fat FIRE: Which Path to Financial Freedom?

The FIRE movement (Financial Independence, Retire Early) has evolved far beyond the original "save 70% of your income and retire at 35" concept. Today, there are several distinct paths to financial independence, each with different savings targets, lifestyle trade-offs, and timelines. Understanding them helps you choose the approach that actually fits your life.

The three main types — Lean FIRE, Traditional FIRE, and Fat FIRE — differ primarily in annual spending in retirement. Coast FIRE is a unique milestone that changes the game entirely. Let's break down each one with real numbers.

Lean FIRE: The Minimalist Path

Lean FIRE means reaching financial independence with a below-average annual budget, typically $25,000–$40,000 per year for a single person or $40,000–$60,000 for a couple. Using the 4% rule:

• Target number: $625,000–$1,000,000 for a single person; $1,000,000–$1,500,000 for a couple.
• Lifestyle: Modest living — small home (or house-hacking), cooking at home, limited travel, careful spending. Many Lean FIRE adherents live in low-cost-of-living areas or abroad.
• Pros: Achievable much faster (often in 10–15 years). Requires less career stress and high income. Forces creative, intentional living.
• Cons: Little margin for unexpected expenses. Healthcare costs can eat a large percentage. May need to return to work if life circumstances change.

Traditional FIRE: The Balanced Middle

Traditional FIRE targets $40,000–$80,000 in annual spending — roughly matching median household expenses. This is the most common FIRE path.

• Target number: $1,000,000–$2,000,000.
• Lifestyle: Comfortable but intentional. You can afford a decent home, regular dining out, annual vacations, and hobbies without constant penny-pinching.
• Timeline: Typically 15–20 years with a 50%+ savings rate, or 20–25 years with a 30–40% savings rate.
• Key insight: Your savings rate matters far more than investment returns. Someone saving 50% of their income reaches FIRE in roughly 17 years regardless of income level.

Fat FIRE: The Luxury Path

Fat FIRE means retiring with a $100,000+ annual spending budget. This requires significant wealth accumulation.

• Target number: $2,500,000–$5,000,000+.
• Lifestyle: Travel frequently, live in a desirable location, dine out regularly, pursue expensive hobbies. Essentially, no real lifestyle compromises.
• Typical path: High-income professionals (tech, medicine, law, finance) who save aggressively during peak earning years. Usually takes 20–30 years.
• Advantage: Maximum flexibility. Unexpected expenses, market downturns, or lifestyle changes barely register. This provides the highest level of financial peace of mind.

Coast FIRE: The Game-Changer

Coast FIRE is fundamentally different from the others. It is not about having enough to retire — it is about having enough that compound growth alone will reach your retirement number by age 65, with zero additional contributions.

Once you hit Coast FIRE, you only need to earn enough to cover current expenses. You can switch to part-time work, take a lower-paying dream job, or start a business without worrying about retirement savings.

• Example: A 30-year-old with $250,000 invested at 7% real returns will have ~$1,870,000 by age 65 — enough for Traditional FIRE — without saving another penny.
• A 35-year-old needs about $350,000 to Coast FIRE to the same target.
• Why it matters: Coast FIRE is achievable in your 30s for many high-savers, and it fundamentally changes your relationship with work decades before full retirement.

Which FIRE Type Is Right for You?

Use our FIRE Calculator to model each scenario with your specific numbers. Here is a decision framework:

• Choose Lean FIRE if: You genuinely enjoy minimalist living, are willing to relocate for low costs, and want to leave the workforce as fast as possible.
• Choose Traditional FIRE if: You want a comfortable retirement without extreme frugality, and are willing to work 15–20 more years at a reasonable savings rate.
• Choose Fat FIRE if: You have high income, want no lifestyle compromises in retirement, and are willing to work longer to achieve it.
• Target Coast FIRE first if: You are in your 20s–30s and want to reduce career pressure sooner rather than later. It is the most universally valuable milestone to hit.