What is the FIRE movement?
At its core, FIRE is a souped-up version of retirement. The main goal of FIRE is to achieve financial independence at a significantly earlier stage compared to the traditional retirement age, thus enabling one to retire early.
Another hallmark of the FIRE movement is to live frugally so as to save more when you are young and lead a low-maintenance lifestyle when you retire. As more people jump on the FIRE bandwagon, it has forked into two main camps supporting “leanFIRE” and “fatFIRE”.
“leanFIRE” follows the traditional FIRE movement more closely, encouraging people to lead modest lifestyles by spending below their means, while diligently saving and building multiple income streams. “leanFIRE” itself has an offshoot termed “baristaFIRE” – where you lead a modest lifestyle but take on part-time work to supplement your income. This allows you to maintain employability, should you ever require to rejoin the workforce, as well as give you the flexibility to enjoy being part of the FIRE movement before being able to fully afford it.
In the other camp, “fatFIRE” is more for those who have been leading a comfortable lifestyle to accumulate enough wealth such that they can continue leading such a lifestyle even in retirement.