4 Types of FIRE: Which One Is Right for You?

If you've done any re into early retirement strategies, there's a good chance you've come across the Financial Independence, Retire Early (FIRE) movement

However, It's been gaining steam over the last few decades, mising retirement in your 40s or even your 30s if you're willing to work hard and aggressively

But as the movement has grown, it's also splintered into different groups pursuing slightly different goals

Understanding these differences is the first step to figuring out which, if any, make sense for you

Here are the four most common types around today, in light of current trends

Nevertheless, Image source: Getty Images (this bears monitoring)

But because of its low annual retirement expenses, it's easier to achieve your lean FIRE number (your savings target) than it is with other FIRE subsets

Lean FIRE may not appeal to you if you aren't comfortable making sacrifices over the long term

Additionally, It's common for all FIRE adherents to frugally while they try to for retirement

But lean FIRE carries this frugality through the rest of your life, in today's financial world

What the data shows is could become blematic for some, especially if you have a lot of unplanned expenses in retirement

You'll need a backup plan for what you'll do if you find you're draining your savings faster than expected

Fat FIRE Fat FIRE is the opposite of lean FIRE

Additionally, Conversely, This could be a better fit for you if you want a more luxurious lifestyle in retirement

It also gives you more cushion in case of unexpected expenses (this bears monitoring), in today's market environment

Additionally, You can always scale back your discretionary spending a little while still covering the basics, in today's financial world

The big blem with fat FIRE is that it requires a much higher FIRE number

A general rule for all types of FIRE is to 25 to 33 times your annual expenses

Nevertheless, It takes time to that much, even if you can set aside half your income, in today's financial world

On the other hand, You may not be able to retire as early as you could if you opted for one of the other FIRE types listed here, considering recent developments

Or you might have to make even greater sacrifices in the present

That could seriously reduce the money left over for covering your living expenses today, and it might not be feasible for you

Moreover, Barista FIRE Barista FIRE is an alternative to lean FIRE for those who want to retire early but are worried draining their savings too quickly

With this strategy, you plan to work a flexible job, being a barista, even after you retire

Conversely, This way, you have a steady paycheck to supplement your personal savings (this bears monitoring)

This also reduces your FIRE number and gives you something to fall back on if unexpected expenses come up (this bears monitoring)

You can always pick up a few extra shifts if need be until you've gotten your budget back on track

Some people enjoy the purpose and camaraderie that comes with having a job, too

One thing to bear in mind, though, is that you may not be able to work forever

On the other hand, Sometimes, health or family caretaking issues force people to leave the workforce, whether they want to or not

Nevertheless, Conversely, So it doesn't hurt to have a little extra stashed away in case you aren't able to continue working as planned, amid market uncertainty

On the other hand, Coast FIRE If you're skeptical saving enough money to last 40 or more years of retirement, coast FIRE could be the right choice for you

However, This apach doesn't actually involve retiring early

You retire at a more typical age -- often your early to mid-60s -- but you get your saving out of the way as quickly as possible

A significant chunk of your retirement savings often comes from investment earnings (something worth watching), in light of current trends

Moreover, Funds you contribute early on in your career often wind up being worth the most in the end because they're invested the longest and have the most time to grow (something worth watching)

Moreover, With coast FIRE, you take advantage of this by saving up to a certain target (this bears monitoring)

Moreover, Then, you stop setting aside money and allow your savings to continue to grow until your retirement age

Once you've hit your coast FIRE number, you can scale back your hours in the workforce, possibly dropping to part-time (something worth watching), in today's financial world

This strategy involves making certain assumptions how quickly your retirement savings will grow

Furthermore, It's important not to be too optimistic here

If your investments grow more quickly, that's great, and you may be able to retire earlier than planned

Meanwhile, If not, your plan won't be derailed

Furthermore, It's OK if FIRE isn't right for you It's also possible that none of the FIRE options mentioned feel the right fit for you, and that's fine

FIRE isn't something that's appealing or feasible to everyone, and it's not necessary to enjoy a comfortable retirement

On the other hand, This assumes you plan to retire at a more traditional retirement age

Moreover, If you're able to do a little more than that without making too many sacrifices in the present, that might be a more sustainable path for you

The most important thing is to find a plan that you can stick with

Furthermore, Figure out what feels comfortable for you, and begin with that

Then, if you feel you can increase your savings rate a little down the road, you can give it a shot.