BiggerPockets Money Podcast Episode Summary

Episode: Which FIRE Strategy is Best for You? (Lean to Fat FIRE)
Date: September 19, 2025
Hosts: Mindy Jensen & Scott Trench

Episode Overview

In this episode, Mindy and Scott break down the main paths within the FIRE (Financial Independence, Retire Early) movement. The discussion explores six common FIRE strategies—from Lean FIRE for the ultra-frugal to Fat FIRE for those seeking luxury—helping listeners determine which strategy fits their goals, income, and personality. The hosts share practical definitions, timelines, requirements, and their own experiences, making this an indispensable guide for anyone on their financial independence journey.

Key FIRE Strategies Discussed

1. Traditional FIRE

[01:10]

• Definition: The classic FIRE target: $1M–$2.5M net worth, affording $40K–$120K annual spending in retirement.
• Timeline: Usually takes 7–20 years for upper-middle-class earners, mainly influenced by one’s savings rate.
• Key emphasis:
  • “The biggest lever that you have to pull for your traditional fire journey is your savings rate.” – Mindy [01:24]
• Pros:
  • Attainable with a typical career.
  • Ensures comfortable, middle-class retirement.
• Cons:
  • Targets can seem daunting and long-term.
  • May not satisfy those seeking a high-end lifestyle.

“I think this is taking the place of the old American dream for an increasingly large percentage of society.”
— Scott Trench [03:44]

2. Coast FIRE

[04:29–12:35]

• Definition: Building enough early retirement savings so you can stop contributions and let compounding carry you to retirement, while you only need to cover current expenses through work.
• Requirements: Varies by age. At 25, about $167K invested could mature to $2.5M by 65; if older, more is needed.
• Timeline: Achievable in as little as 3–5 years for aggressive savers; longer for most.
• Pros:
  • Relieves the pressure to save for retirement.
  • Greater freedom for career pivots, taking lower-paying or more enjoyable jobs.
• Cons:
  • Still requires working until traditional retirement.
  • Assumes steady market returns over decades.

“If you can calculate that you’re coast fire then you can ease off the gas… The pressure is off. You’re not behind by any sense.”
— Scott Trench [05:45]

• Tools: The hosts recommend The Pioneers' Coast FI Calculator for planning.

3. Barista FIRE

[12:39–15:58]

• Definition: Partial FIRE; enough savings to cover a portion (but not all) of expenses, with the balance covered by part-time or lower-stress work (e.g. being a barista).
• Target: $250K–$750K invested, typically 15–20x of annual expenses.
• Timeline: Attainable in 3–7 years, often 5-10 years sooner than traditional FIRE.
• Pros:
  • Flexible, requires lower savings.
  • Enables a low-stress part-time or seasonal job.
• Cons:
  • Upper/middle-class professionals may struggle with downshifting in status/income.
  • Part-time work might sometimes be hard to find.

“It just takes a little bit of a different brain wiring to really wrap your head around this and go and live out your life as a barista fire.”
— Scott Trench [14:41]

4. Lean FIRE

[16:10–20:24]

• Definition: Achieving early retirement on a small nest egg ($600K–$1M, maybe up to $1.25M in some areas), living on a lower-middle-class/frugal lifestyle.
• Pros:
  • Quicker to achieve; works with modest incomes.
  • Doesn’t require entrepreneurship, real estate, or high-risk investments.
• Cons:
  • Requires strict, sustained frugality.
  • Less margin for emergencies or “lifestyle inflation”.
  • May not be practical in expensive cities or for those who dislike frugality.

“If frugality is not your natural setting, lean FI might be more difficult for you.”
— Mindy Jensen [18:17]

• Insight: Many people use Lean FIRE as a stepping stone, gaining freedom before moving towards larger goals.

5. Chubby FIRE

[25:32–29:46]

• Definition: Higher than traditional FIRE, not quite “ultra wealthy”: ~$2.5M–$6M, supporting an upper-middle-class life ($100K–$240K+ annual spending).
• Pros:
  • Plenty of flexibility; supports nicer homes, better schools, upscale vacations.
• Cons:
  • Requires high incomes or successful business exits.
  • Still demands some budgeting, not total financial abandon.

“This is not somebody who's flying private... This is an upper middle-class lifestyle…”
— Scott Trench [26:38]

• Trend: Scott expects this target will become the most common aspiration in the FIRE community soon.

6. Fat FIRE

[29:49–36:57]

• Definition: ~$6M+ net worth, allowing for $300K+ in annual spending; living in luxury, little budgeting required.
• Pros:
  • Almost no spending limits.
  • Affords dream homes, top-tier cars, luxury travel, philanthropy.
• Cons:
  • Realistically only attainable for ultra-high earners or business owners.
  • Can take decades to reach, and requires an aggressive savings/investing strategy.

“Fat FIRE... is not a state of body but a state of your bank account.”
— Mindy Jensen [29:49]

• Observations:
  • Some reach Fat FIRE unintentionally—by continuing to work or relying on compounding market gains.
  • Many who hit Fat FIRE continue spending frugally (“the portfolio just ran away over the last ten years” – Scott [34:34]).

Notable Quotes & Memorable Moments

• “There’s no official beginning or end to the types of fire and a new acronym is invented by the hour in the fire community.”
  — Scott Trench [00:56]

• “The numbers can seem so large that it takes decades to get to where you need to go… I think seven [years] is a very aggressive goal and implies a very high savings rate.”
  — Mindy Jensen [01:52]

• “Many people will see themselves sliding from lean to traditional, from traditional to chubby, and from chubby to fat just how the market shakes out.”
  — Mindy Jensen [35:41]

Discussion Highlights & Additional Insights

• FIRE is not one-size-fits-all:
  • The right approach depends on your values, spending needs, risk tolerance, and career goals.
• Achievability:
  • Lean FI and Barista FI are most accessible/quickest.
  • Traditional and Chubby FI are more common aspirations for those with higher incomes or more time.
  • Fat FI is exceptional, often resulting as a side effect of aggressive saving, investing, and favorable market returns.
• Lifestyle Flexibility:
  • Coast and Barista paths are great options for those prioritizing freedom and life design along the way, not just the final dollar figure.
• Evolution:
  • Many end up with higher net worth than planned, as ongoing work and compounding do their job.

Timestamps for Important FIRE Types

| Segment | Timestamps | |------------------------------------|------------------| | Traditional FIRE | 01:10 – 04:22 | | Coast FIRE | 04:29 – 12:35 | | Barista FIRE | 12:39 – 15:58 | | Lean FIRE | 16:10 – 20:24 | | Chubby FIRE | 25:32 – 29:46 | | Fat FIRE | 29:49 – 36:57 |

Final Thoughts

The episode wraps with Mindy and Scott recognizing that goals may shift over time—and it’s common for dedicated savers to “slide” into more affluent tiers than originally targeted. The core principle is to design a financial path that creates meaning, flexibility, and happiness, rather than chasing an arbitrary number.

“Being able to leave and still trusting the math is a superpower in the FI community.”
— Mindy Jensen [35:41]

For calculators and resources mentioned:

• Visit The Pioneers’ Coast FI Calculator.
• Listen to referenced past episodes (e.g., with Mr. Money Mustache, episodes 664 and 665).

Hosts:
Mindy Jensen & Scott Trench
Producer: Blake Stell