WealthCoast FIRE vs Lean FIRE vs Fat FIRE
1. The FIRE principle in 30 seconds
FIRE = 25 times your annual expenses invested (4% rule), letting you live off portfolio returns indefinitely.
FIRE Capital = Annual Expenses × 25
2. Lean FIRE — $500,000
Profile: $20,000/yr expenses, target $500,000. Minimalist lifestyle.
Pros: achievable in 10-15 years at 50-60% savings rate.
Cons: low margin for unexpected expenses. Inflation-sensitive.
3. Regular FIRE — $1,000,000
Profile: $40,000/yr expenses. Comfortable, not excessive.
Canadian strategy: max RRSP ($33,810 in 2026) + TFSA ($7,000) each year. At 30% marginal tax, RRSP deduction alone generates $10,000 in annual tax savings.
| FIRE type | Annual expenses | Capital target | Key requirement |
|---|---|---|---|
| Lean FIRE | $20,000/yr | $500,000 | Achievable in 10-15 years at 50-60% savings rate |
| Regular FIRE | $40,000/yr | $1,000,000 | Comfortable, not excessive lifestyle |
| Fat FIRE | $100,000+/yr | $2.5M+ | Requires high income (ideally $200k+) or business growth |
4. Fat FIRE — $2.5M+
Profile: $100,000+ annual expenses. Quality home, new car, frequent international travel.
Requires high income (ideally $200k+) or business growth.
5. Coast FIRE — the Canadian sweet spot
Concept: initial capital sufficient to grow alone to your FIRE number by 65 at 7% return.
Example: at 30 with $1M FIRE target at 65, need ~$95,000 today. Once reached, you can stop contributing and live on current salary.
6. Barista FIRE — gentle transition
Profile: partial capital + part-time job to complete income. Exit corporate burnout.
Choose Lean or Regular FIRE if...
- Your real annual expenses are under $25k -> Lean
- Your real annual expenses are $30-50k -> Regular
- You're comfortable with a minimalist or moderate lifestyle
Choose Fat or Coast FIRE if...
- Your real annual expenses are $60k+ -> Fat
- You want flexibility while keeping a regular job -> Coast
- You're weighing whether you'd be OK returning to work if markets crash
7. Which FIRE for you?
3 questions: (1) What are your real annual expenses? (2) How many more years to work? (3) OK returning to work if market crashes?
Lean if < $25k. Regular if $30-50k. Fat if $60k+. Coast if flexibility with regular job.
Frequently Asked Questions
Is the 4% rule reliable for Canada?
Yes. Some experts suggest 3.5% for 40+ year retirements (more conservative).
Is Coast FIRE achievable at 25?
Yes: for $1M FIRE at 65 at 7%, need about $65,000 at age 25.
Should I include CPP and OAS in FIRE?
Before 60: exclude. From 65+: they add $15-25k/yr, reduce needed capital by $200-400k.
How do I calculate my real annual expenses?
Sum last 12 months (bank + credit card). Include travel, dental, car, donations.
Sources & references
Educational content. Figures and rules verified against the official sources above; tax amounts change annually.