LeanFIRE vs FatFIRE

There are different paths to retiring early. Some are harder than others and so there is also the easiest route. Easy may also mean a lower standard of living, requiring you to live in a van or move to south east Asian. I find it extremely educational to lay this out so that you can CHOOSE what standard of living you want to retire and PAY the price in terms of saving enough to do it. Is it possible even? That is what I will explore in this video.

How’s it going everybody this is beat the bush today i’m going to talk about early retirement in particular what the difference between lean fire and fat fire is now lean fire and fat fire these are the terms that you come across if you’ve been trying to retire early for long enough and you’ve researched it enough lean as in you know a lean piece of meat fat as in

The fat piece of meat and then fire fi re which stands for financial independence retired early the basic premise of lean fire is to cut your expenses drastically kind of like austerity measures over in europe you save like a crazy person you have a very low cost of living and essentially your expenses are paid for by your passive and semi passive income streams this

Then allows you to retire early and you can do optional things like living in a van that would really drastically lower your cost of living you can move to a glower cost of living area in the same country or you can move to southeast asia where the cost of living is a lot lower now the contrast of this is fat fire which is basically you’re not very lean anymore

Your standard of living has inflated a little bit and the requirement of this is basically you have to make a lot of money somehow in one way or another being entrepreneurship or maybe you have your own small business however it does still mean that you have to spend less than what you make because if you spend exactly what you make well you’re never gonna save

Enough so that you can actually retire when you’re at the fat fire stage you’re essentially retired and you’re at an elevated standard a living level of courses is gonna cost more now this is nice and all you don’t have to cut corners because you can essentially live the life that you want to live you don’t have to keep on skimping on everything of course everybody

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Would like to be in the fat fire stage but this requires you to make a lot of money so that you can fund whatever amount that you spend now at this stage someone external to your life someone that knows nothing about you you might be spending like everybody else’s you might be like getting coffees and stuff you might be buying fancy new cars people looking on the

Outside looking in might just think oh yeah you know they’re just looking rich but then you can actually be rich and look rich because that is essentially the definition if you’re at the fat fire-safe you’ve retired already you have the money to spend in luxury items in convenience items and things like that so if you’re trying to go for lean fire and then you see

Other people spending a lot of money you cannot just generalize and then go oh yeah you know they’re just trying to keep up everybody else do you have nothing in the bank account but it’s really hard to infer what their financial status is you can kind of generalize and it might be true for most of the cases but for any particular person you really don’t know you

Don’t know their financial background so it’s hard to guess anyhow if you’re in the fat fire stage you can actually not have to move to a lower cost of living area you can stay in san francisco in the bay area you can stay in new york if you see in the coastal areas you might end up paying a lot more for health care cost of living property taxes and state taxes

But the point here is that if you’re in the fat fire stage you can meet or exceed all these expenses and you know it won’t matter too much because if you enjoy where you’re living because there are a lot of perks for living in california living in new york in a sense if you live in the coastal areas and you get what you pay for now i want to talk about why people

Mostly choose lean fire over fat fire it’s basically there really isn’t a choice if you want to go fat for you have to make millions of dollars it’s certainly not for the lack of trying because i’m pretty sure a lot of people wants to make a lot of money and they do actually try to do it but not everyone can be a successful small business owner or an entrepreneur

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Going lean fire is essentially the path of least resistance because saving $100 is kind of easier than making $100 depending on what type of person you are for most people with a lot of frivolous spending it’s really easy for them to cut back on $100 worth of spending a month versus trying to make another $100 a month for most people i think this is easier to cut

Back now what about van life and moving to southeast asia yes this is a really really short cut path this is kind of like a short circuiting this rat-race type of thing if you choose those paths is very unconventional if you suddenly live in a van you know people are gonna treat you differently you don’t have an address anymore if you live in southeast asia you

Suddenly are transplanted your whole life is over there if you sort of goo roots in a certain country it’s really hard to pick up and then just move to southeast asia sometimes people prefer these methods because the alternate is just kind of being a slave for life basically because people are just trapped in this cycle there were and then they’re getting money

And they have to live in you know some rent place and then they’re just taking money in and all of that money most of it is going out in rent so they only see themselves just you know sort of spinning their wheels so the way the circuit all this is okay you still work and then you live in a van it’s basically almost like the only way out you know in this day and

Age now it’s a sad truth that sometimes you have to do van life or you have to move to southeast asia in order to retire early you want to retire early because you want to have your life back you want to spend more of your time it’s sort of like being greedy with your time you don’t want to give this away to your employer in exchange for money you sort of maximizing

What you want to do with your time now let me talk about why people want to go fat fire it’s sort of obvious fat fire is great it’s luxury everybody wants fat fire you want to retire early and you want to have enough money in the bank to be able to spend as you please and have a high standard of living high standard of living means luxury means maybe you’re living

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In the heart of san francisco in the heart of manhattan you keep on buying organic groceries you know just a whole bunch of luxury things that is not really part of lean fire but this requires you to have a lot more capital or a lot more residual income i hope this was interesting for you guys because laying it out like this there’s lean fire fat fire and there’s

A spectrum in between now you want to go and choose what part of the spectrum do you want to retire at what is your goal are you stuck in a situation where you see yourself just spinning your wheels for the next 30 40 years well then maybe living in a van is not all that bad in comparison to spinning your wheels for the next thirty years if you guys are interested

In supporting this channel check out my audible link down in a video description below where you can get a free audio book just for trying to service out the latest book i read is called the millionaire fastlane and you can get this audiobook for free by using my trial down in a video description below this book is about striving to be an entrepreneur and i’d say

After reading it i get really pumped up i’m like oh yeah you know i want to go start a company so this book is more like well if you want to strike it rich you want to pursue the fat fire route then this book is for you now for this audible service if you don’t like this audiobook or this service you can cancel it before the subscription is up you don’t have to

Pay a thing so if you just want to listen to this book just because i recommend it even if you get this audiobook for free you will still help benefit this channel for those of you that already signed up already thank you for supporting my channel don’t forget to push that subscribe button and ring that bell icon thanks for watching

Transcribed from video
LeanFIRE vs FatFIRE By BeatTheBush

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