LEAN F.I.R.E.
Lean | Financially Independent | Retire Early
DEFINITIONS
FI: Financial Independence; your passive income is enough to sustain you; typically one's FI number is considered to be 25x annual retirement burn rate (
RE: Retire Early...this is self explanatory
TYPES OF FI
LeanFI: Annual Retirement Expenses < $40k; the upper "limit" of lean FI numbers is $1mm
RegularFI: $40k < Annual Retirement Expenses < $100k; FI numbers ranging from $1mm to $2.5mm
FatFI: $100K < Annual Retirement Expenses; FI numbers greater than $2.5mm
BaristaFI: Semi-retirement; save enough money to cover *most* expenses, but work part time to cover the rest
CoastFI: Net worth is expected to grow enough to reach your FI number without saving anymore; current expenses will be covered by your income