Flavours of FIRE (Part 3)
In Part 3 of this FIRE series we discuss the flavours of FIRE.
FIRE as described in Parts 1 & 2 is the classic FIRE path, accelerating to full financial independence and often retiring fully.
However everybody is at a different age, career stage, and earning situation. Everybody values their present and future time differently.
Other flavours of FIRE prove useful in providing different approaches, and motivational milestones.
FIRE spectrum
FIRE flavours can be regarded as a journey or spectrum, don’t feel any pressure to reach the end, you may enter and exit at any point!
Source: walletburst
Coast FIRE
Have invested enough that even if you cease contributing now, your pot will naturally grow enough by typical retirement age
Relax a little knowing that your future retirement is secured
You may choose to enjoy more with the money you were investing, alternatively maintain savings rate and target the next flavour!
Best for younger investors with long timelines for powerful compounding, but a motivational milestone for everybody
Barista FIRE
The tastiest of flavours!
Have invested enough that you can draw part of your income, working part-time to make up the rest
Not strictly FIRE, as you do need to work a little, however being able to switch from a higher-stress job and reduce hours brings freedom
Originated in the US where people take a part-time job at Starbucks to get health insurance!
Best for those who want to switch from their current career ASAP and don’t mind supplementing
Lean FIRE
Frugal FIRE
You are ruthless with expenditure, and were probably easily living with a high savings rate and lower spending anyway
Unlike Barista FIRE you are now fully retired with no obligation to work
Though you may also choose to work for a little extra fun money
Best for those who want to fully retire ASAP, and enjoy a simpler lifestyle with lower cost of living area and hobbies
FIRE
Classic FIRE
You are now beyond Coast / Barista / Lean FIRE and reached your full target pot
You can retire fully at a comfortable income level, while perhaps retaining your higher cost of living area and hobbies
Best for those who want full freedom, without being too frugal, and more buffer against unexpected expenses
Fat FIRE
Like FIRE but a fatter retirement!
Spending even in excess of your budget while working
Maximum budget to do whatever you want
Best for those with high incomes, or those willing to have very high savings rate now to live extravagantly when retired
Fancy any FIRE Flavours? Check our Retire Earlier package to measure where you are now, and how to reach one of these milestones
