Different types of FIRE
There are several different types of FIRE, which can be categorized based on the degree of financial independence and the retirement age that is being targeted. Here are some of the most common types of FIRE:
LeanFIRE: This type of FIRE involves achieving financial independence by living a frugal lifestyle and minimizing expenses. LeanFIRE enthusiasts often aim to retire in their 30s or 40s and are willing to live on a lower income to achieve their goals.
FatFIRE: FatFIRE is the opposite of LeanFIRE, and it involves accumulating a large amount of wealth to support a more luxurious lifestyle in retirement. FatFIRE enthusiasts often have a high income and aim to retire with a significant amount of savings.
BaristaFIRE: BaristaFIRE involves achieving partial financial independence by reducing work hours or transitioning to a lower-paying, less demanding job while still accumulating enough savings to eventually achieve full financial independence.
CoastFIRE: CoastFIRE involves reaching financial independence early in life but continuing to work to cover basic expenses and allow investments to grow. CoastFIRE enthusiasts often aim to retire in their 40s or 50s but may choose to continue working if they enjoy their job or want to save more money.
Semi-FIRE: Semi-FIRE involves transitioning to a part-time or more flexible job, which allows for more free time and a better work-life balance while still earning some income. Semi-FIRE enthusiasts often aim to work part-time while still accumulating savings for retirement.
Each type of FIRE has its own unique characteristics and requires different levels of savings and planning to achieve. The approach that is right for you will depend on your financial goals, lifestyle preferences, and personal circumstances. It's essential to research and carefully consider the different types of FIRE before choosing a path to pursue.