How to "Retire" Quickly with FIRE's 4 Savings Styles

Of course, retiring early would be a dream for many people. But not everyone can do it. respnsibilities that are not the same for everyone. However, someday we will have to retire anyway. So, for effective retirement, let’s take a look and apply 4 “FIRE” retirement methods to adapt to suit us.


First, let’s get to know the word “fire.” “FIRE” stands for “Financial Independence, Retire Early”. They are a group of people who want to retire early and do whatever it takes to retire as quickly as possible. Their primary goal is to have a property value of at least 25 times the cost per year before age 40. Let’s say we have expenses of 1 million baht per year. Setting a goal like FIRE is to have 25 million baht before the age of 40. Most of them are dedicated to working, focusing on saving money and investing seriously. The term was mentioned in the book Your Money or Your Life, which was first published in 1992.

1. Lean FIRE

Fitness enthusiasts may be familiar with the term “lean.” Remove excess fat, reduce sweets, oils, and fried foods to give your body only the necessary muscles. In terms of finance as well, lean means eliminating excess costs. to leave only what is necessary and save as much as you can until you can save up to 25 times your annual expenses by adhering to a strict set of spending habits. 

The advantage is that there will be a chance to reach the goal quickly. Training to be a thrifty person after retirement but the disadvantage is that it has to be exchanged for what many working-age people are afraid of, that is, they hardly spend for their own lifestyle.

2. Fat FIRE

If compared to exercise, it is a hard exercise and eats a lot because happiness is not only in good shape or good health. A person who is good at saving money, focusing on investments and at the same time paying attention to lifestyle, focusing on living too (with a plan), but the collecting part will focus on investing money to generate proactive returns and create passive income for money to grow at the same time.

The benefits of this style are that you are still living a stress-free lifestyle. But on the other hand, it can be exhausting to earn extra income to reach your goals, and it may slow you down.

3. Barista FIRE

For Barista FIRE, it’s a gradual approach. The main behavior is not to be extreme in any way. It is a mix of Lean FIRE and Fat FIRE.

This group will have investment income that covers personal expenses exactly. Divide savings and investments to generate proactive and passive income while also choosing to work part-time or freelance as an additional income.

The advantage for this format is that it is not too stressful. It does not affect their lifestyle, but has a few disadvantages for people who do not like to work. That means you may have to work part-time or freelance continuously if you don’t want it to affect your planned investment.

4. Coast FIRE

Another type is Coast FIRE Coast FIRE has a plan to collect money and invest it. So that in the 30-40 years, there is enough money to fund the investment until reaching the retirement goals (after 60 years).

For example, if we plan to retire at the age of 60 at a cost of 6,000,000 baht. We believe that we can invest with an average annual return of 5%. It can be calculated that if we reach 30 years of age, we will have to collect 1,400,000 baht to invest in order to get an average return of 5% compounded per year. This amount will grow to 6 million baht in 30 years.

This type of behavior, known as “coast FIRE,” is the only first step towards financial freedom. because they will also have to work part-time or freelance. to be used to spend in everyday life, while waiting for the money you invested to grow into money for retirement as intended.

However, the advantage is that there will be no trouble after retirement. The disadvantage is that it may not be able to retire from earning more. We must work freelance or if it doesn’t go according to plan, we may have to return to work. But at least it’s enough to be satisfied that we will not have a hard time in retirement at the age of 60.

However, it must be emphasized that FIRE is only a form of financial lifestyle. It may not be suitable for everyone. But for anyone who likes a challenge and wants to achieve their goals for financial freedom, FIRE should be a viable option for future financial planning.

อ้างอิง: กรุงเทพธุรกิจ รวบรวม, bankoncube, thepoorswis, businessinsider, mendetails

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