Lean FIRE (Financial Independence Retire Early) is being able to retire before the conventional age of 60+, but significant sacrifices must be made in order to do so.
Unlike Fat FIRE (to be discussed in detail in the upcoming articles), where you can truly live it up in retirement because you have so much more money producing a higher amount of passive income, Lean FIRE often requires one or more of the following:
Living in a cramped studio, van, or trailer
Deciding never to have kids
Living in a very low-cost area of the country which doesn’t have the same level of entertainment, culture, food, activities, and research centres as superstar cities
Not being able to save up for the option of sending your kids to private grade school or college
Pretending that you are retired to friends, family, and social media, while one partner is working a full-time job and/or you’re hustling your tail off to make supplemental income
There’s NOTHING wrong with Lean FIRE.
Having a minimalist lifestyle while doing what you want is great.
Fat FIRE and Lean FIRE are simply two ends of the early retirement spectrum. The bottom line is picking whichever you think is more realistic and attainable long-term.
Source: Financial Samurai