Coast, Barista, Lean, Fat: The Types of FIRE Explained
FIRE is not one thing. Coast, Barista, Lean, and Fat FIRE are different flavors of financial independence. Here is what each means and who it fits.
FIRE stands for Financial Independence, Retire Early — but it comes in several flavors. Knowing which one you are aiming at changes how much you need and how fast you can get there.
Regular (or "Full") FIRE
The classic version: you invest enough that the 4% rule covers your normal expenses indefinitely. Work becomes fully optional. For $50,000 of annual spending, that is roughly $1.25M invested.
Lean FIRE
Same idea, smaller budget. Lean FIRE means reaching independence on a deliberately frugal lifestyle — often under $40,000 a year. It gets you there faster, but leaves less margin.
Fat FIRE
The opposite: independence with a generous budget — think $100,000+ a year. It buys comfort and cushion, but the number is large (often $2.5M+), so it takes longer or a higher income.
Coast FIRE
You stop saving for retirement once your invested assets will grow into your FI number on their own. You still work to cover today's bills, but the retirement piece is handled. It is the earliest milestone, because compounding does the rest. (See what Coast FIRE means.)
Barista FIRE
A halfway house: you have enough invested to cover most expenses, and a part-time or lower-stress job (the namesake barista) fills the gap — often for the health benefits. Less than full FIRE, more freedom than a full-time grind.
Which one fits you?
- Want the earliest sense of freedom? Aim for Coast FIRE first.
- Value security and comfort? Fat FIRE.
- Willing to live lean to get out fast? Lean FIRE.
- Want to downshift soon, not quit entirely? Barista FIRE.
Want the full system?
Build Real Wealth turns these ideas into a step-by-step plan, with interactive tools and a clear path from where you are to where you want to be.