Fat FIRE

Fat FIRE stands for financial independence that allows a comfortable lifestyle without major restrictions. Unlike more frugal variants, this approach aims to fund the accustomed, or even an elevated, standard of living from the portfolio on a lasting basis.

Because the capital needed generally depends on annual spending, a higher level of spending leads to a markedly larger target portfolio. The advantage is more financial room and buffer; the price is a longer accumulation phase or a higher savings rate.

Fat FIRE thus marks the comfortable end of the FIRE spectrum, in contrast to Lean FIRE with its deliberately minimalist cut. Whether this route is realistic depends on income, the savings rate and personal expectations.