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The concept of F.I.R.E (Financial Independence Retire Early) has caught the fancy of people who strive to retire early and leave worrying about money forever. Here we will explain what exactly fire, FatFire, and LeanFire are and the pros and cons of each one of them. So here we go with FIRE VS LeanFIRE VS FatFIRE.

What is FIRE?

Who doesn’t want to have enough in their portfolio so that they don’t have to worry about money for the rest of their life? The FIRE (financially independent, retire early) movement is a social movement that encourages people to save money and invest to achieve financial independence and retire early. The movement has gained popularity in recent years, with a growing number of people sharing their stories and tips online. FIRE can be called a burning desire to retire early with enough savings to leave an independent life.

Happy Retirement is Where you have Financial Independence and choice to lead life your way

Happy Retirement is Where you have Financial Independence and the choice to lead life your way. Image via unsplash.com

The FIRE movement has helped people to change the way they think about retirement. No longer is retirement something that happens at a certain age after years of working. Instead, retirement is something that can be achieved at any age, as long as you are willing to save and invest wisely.

Suggested Read12 Books For People Who Want To Pursue FIRE Lifestyle

Types of FIRE

There are a number of different ways to achieve FIRE, but the most common approach is to save a high percentage of one’s income, invest in a diversified portfolio of assets, and then live off the income from those investments.

The goal is to reach a point where one’s investment income covers all of one’s living expenses, allowing for a comfortable retirement at a young age.

  • Fat FIRE: Fat FIRE is when you retire early and live a lavish lifestyle afterward.
  • LeanFIRE: Lean FIRE means to retire early but with an amount where you can lead a lean and simple lifestyle.
  • CoastFIRE: Coast FIRE refers to when you have savings for retirement but you need to work to cover your living expenses.
Retire Early To Have more time with friends and family
How to achieve LeanFIRE?

Lean FIRE is a term used to describe the financial strategy of retiring early with a minimal amount of money. The idea is to save up enough money to cover your basic living expenses so that you can then live off of your investments and other sources of passive income.

To calculate how much money you need to retire early, you first need to determine your annual expenses.

Let’s say your annual expenses are $30,000. This means you would need a nest egg of $750,000 to retire if you plan on living off of 4% withdrawals each year. You can use a FIRE calculator to get your FIRE number.

The following steps will help you to achieve lean FIRE-

  1. Calculate your monthly expenses and make sure that they are realistic. This includes your regular expenses like food, shelter, and transportation as well as your FIRE-related expenses like investing and saving.
  2. Make a budget and stick to it. This will help you keep track of your expenses and make sure that you are not spending more than you can afford.
  3. Invest in a mix of assets that will give you the best chance of achieving your FIRE goals. This might include stocks, bonds, real estate, and other investments.
  4. Automate your finances as much as possible. This includes setting up automatic transfers to your investment and savings accounts as well as setting up bill pay for your regular expenses.
  5. Stay disciplined with your spending. This means avoiding unnecessary purchases and sticking to your budget.
  6. Have a plan for withdrawal. This includes figuring out how much you will need to withdraw each month to meet your expenses.
  7. Review your progress regularly. This will help you stay on track and make adjustments to your plan as needed.

Of course, everyone’s situation is different, and there is no one-size-fits-all answer when it comes to retirement planning. But if you’re looking to retire early on a lean budget, LeanFIRE may be right for you.

How to achieve FatFIRE?

Fat FIRE is all about achieving financial independence with a high living standard.

Your Fat FIRE number depends on how luxurious a life you want to have after retirement and how much you need to have in your investment portfolio for it.

To achieve it you need to have 25 times your yearly spending in your investment portfolio.

Let’s assume your Fat FIRE number is  $100,000/year in retirement.

Then if you accumulate $2.5 million, you reach your Fat FIRE.

Lean FIRE vs Fat FIRE

The main difference between these is how luxurious a life you want to live after your retirement. Let’s have a look at the pros and cons of both the FIRE

Pros of LeanFIRE
  • You can get financial independence quicker than Fat FIRE.
  • As you don’t have a large number to chase in your investment portfolio, the stress is less.
  • If you are someone who believes in minimalism and living life without worrying about money, LeanFIRE is for you.
Pros of FatFIRE
  • Fat FIRE people can live a luxurious lifestyle without worrying about money.
  • It’s easier to build generational wealth for them.
  • They can take more risks to create more wealth
Cons of Lean FIRE
  • With rising inflation or recession, it can become difficult to bear the cost of living.
  • Lean FIRE is easier for those with no kids. It is hard to live frugally with kids.
Cons of Fat FIRE
  • You may have to work for a longer time to reach your Fat FIRE number
  • One needs to invest wisely to get the highest ROI of your investment
Final Thoughts: FIRE VS LeanFIRE VS FatFIRE

So we hope, you got clarity on the topic of FIRE Vs LeanFire Vs Fatfire. You may also get to know if the path of F.I.R.E is right for you or not. Also if you decide to follow the path of FIRE, you may come to decision on whether to go with FATFire or with the LeanFire approach.

How does Secvolt help you to reach Fat FIRE?

The average interest rate people get from the stock market or bonds is 10-12%. After inflation and tax, the number goes down below 6%. While investing with Secvolt, you get 10-12 times more returns than the average market with less risk. Secvolt is an asset management firm that specializes in helping people retire early. 

Visit secvolt.com to check 110+ live case studies.

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Ashish Verma

Ashish Verma is the founder and CTO of Secvolt, with close to 10 years of experience in the IT industry. He has been the technical backbone of the company and has worked tirelessly to make the technical infrastructure robust. He is a passionate entrepreneur who generates solutions that have the potential to bring change.

In order to ease the client’s interaction with Secvolt, he has strived to develop the business’s technological foundation and establish a user-friendly platform. Ashish has also contributed substantially to smoothening the company’s administration and ensuring that there are no lacunae in the broad structure of the organization. 

Early Years

Coming from a middle-class family, he was aware of the problems that people faced while using technology. He sought to create something that was simple to use yet had a powerful effect. As he studied computer science, he became eager to offer a solution to real issues. He began his professional career at Amdocs, where he gained expertise in client management while catering to more than 20 clients. Later, he moved to Citicorp, where he had exposure to the investment industry. His time at Amdocs and Citi enabled him to produce high-standard, efficient, and scalable technical infrastructure.

He left corporate jobs for his startup because he was passionate about working on the concept of a smart city platform. He expanded the concept internationally and even collaborated with Global Dignity-Kuwait. Things didn’t work out for him the first time. He states, “My failures didn’t stop me from experimenting and trying new things.” He rose from the ashes like a phoenix and founded FewerClicks, an End to End IT solution company.

He worked on the creation of Solster Finance, a decentralized financial platform based on the Solana blockchain. He created this platform single-handedly which has helped the team raise a $1M investment and a revenue of more than $5M within 6 months of launching. 

He has previously worked on many blockchain technologies and cryptocurrency ventures, which include Decentralized Finance Applications (Defi), Decentralized Applications (Dapps), File Contracts (SIA, record-keeper), Smart Contracts (rust, solidity), and NFT Development. His experience and effective communication have helped many team members understand Secvolt effectively and the underlying technology it is powered by.

He possesses the ideal combination of strategic thinking and excellent business insight. He is responsible for formulating technical aspects of the company’s strategy to guarantee alignment with business objectives. With his drive to experiment with new technologies, he has helped Secvolt achieve a competitive edge. Being in charge, Ashish never holds back in encouraging the different departments to make profitable use of technology, helping to grow as an unstoppable team at Secvolt!

Hanif Shaikh

Hanif Shaikh is the founder and CMO of Secvolt, with over 8 years of experience in the industry. He plays a crucial role when it comes to the growth of Secvolt. Since the beginning, he has acted as a mentor for each and every employee of the company, and he makes an effort to be accessible to his staff anytime they need him. 

Hanif first entered the Blockchain and Crypto world in 2016, and nothing has stopped him since. He views blockchain as a transparent platform that provides authority and accountability back to the people. He consistently believes that “overcommunication is better than miscommunication.” He has lived by this motto with his staff, clients, and networks.

Early Years

Hailing from Gujrat, a state in India, he is following his dream to contribute to making this world a better place. In the process, he has struggled, made some mistakes, and learned lessons from those mistakes to achieve success in life. His entrepreneurial attitude dates back to his childhood when he learned from his father’s business and aspired to have it all. He came from a humble background and had ambitions to succeed in life.

He has developed two successful businesses from scratch, and in the process, he has inspired young people to start their own businesses. He was an integral part of the Quora Mumbai Meetups and helped it become a great success in a short period of time. Later, he began organizing meetups to raise awareness about blockchain, cryptocurrencies, and their applications. He also shared his knowledge of ICOs, highlighted reputable ICOs, and established a small cryptocurrency community on WhatsApp groups.

He chose to go on a Blockchain Tour in India in 2019 and met some fascinating people. Throughout his journey, he has been able to build an extensive and robust network that has aided Secvolt’s growth. Because of his expertise and understanding of the Crypto Industry, he has been featured on several news channels and has advised the youth on the subject.

He is in charge of the company’s marketing operations and is responsible for developing its marketing strategy and vision. He oversees a group of passionate marketing professionals and plans promotional strategies with the goal of making  Secvolt a global brand. 

He is a perfect blend of a practical attitude and innovative business acumen. He believes in the ability of individuals to perform exceptionally well when given an environment to experiment and explore their passions; a culture that he has built at Secvolt.

Divakar Choudhary

Divakar Choudhary is the founder and CEO of Secvolt who has been trading for more than six years now. He started the business in 2018 with the conviction that if anybody could dominate the market, it was him. He poured all of himself into the business and turned Secvolt into a market-beating machine.

Divakar developed the fundamental quant models that perform risk management and capture alpha using his skills from the previous organization and his time spent in the market. In order to make the system effective, he backtested risk mitigation algorithms and worked on them for more than 4 years to produce results.

Early Years

He began his crypto journey in 2013 after getting his first gaming Laptop and melded in with the Blockchain community like sunbeams on the ocean. He created many YouTube channels at the age of 15 and businesses by the time he was 17. Technology has always piqued Divakar’s interest. He endeavored and succeeded at freelancing in his effort to achieve financial independence. However, he soon realized that freelancing would always keep him in the rat race, and the only way out would be to build a machine yielding generational wealth.

Soon, he started trading using his own capital but suffered a loss in the market. He says, “95% of people lose money & the rest 5% make money from the loss of those 95%.” He then began working on an effective technique to be included in this 5% after losing part of his own assets during the early stages of trading. He began evaluating quant strategies using statistical models.

With his methodology, he once produced a 20% ROI in a single month. With the zeal of creating something exceptional, he borrowed money from friends and family and generated decent returns for them using primitive quant models. Month after month, the system’s efficiency and the competence of the man behind it allowed for excellent market returns.

In the beginning, Divakar worked on his laptop for over 18 hours. It took every ounce of his energy as he executed about 530+ deals daily for 4 years to create this company from the ground up. In 2021, he increased his volume by 827%, trading a total of $52 million and hitting a single account.

In his words-

“What does becoming “THAT” GUY mean to you? Who did you need when you were young? Be that person!”

He is a perfect example of someone who followed his passion and made a fortune from it! He dreamt of creating generational wealth as a youngster, envisioned it as an adult, and is now making it a reality with Secvolt!