🔥 FIRE

Coast FIRE vs Lean FIRE vs Fat FIRE

Published 2026-05-13 · 11 min read · WealthWise
⚠️ For informational purposes only. This article presents facts and concepts. WealthWise is not a registered investment advisor. For any investment decision, consult a licensed advisor with your provincial regulator.
The FIRE movement (Financial Independence, Retire Early) offers multiple variants by lifestyle. Between Lean, Regular, Fat, Coast and Barista, this guide breaks down each with concrete 2026 Canadian numbers.

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 ($32,490 in 2026) + TFSA ($7,500) each year. At 30% marginal tax, RRSP deduction alone generates $10,000 in annual tax savings.

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.

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.