What is FatFIRE?
FatFIRE is a term used to describe someone who has reached financial independence. It stands for “fat” because you can live a comfortable life without having to work, and it’s also known as the FIRE movement (short for Financial Independence Retire Early).
The idea behind this way of life is becoming more popular as people realize they don’t have to work forever if they don’t want to.
Why do you want to have a FatFIRE?
So, why do you want to have a FatFIRE?
- You can do what you want to do. Instead of working for someone else’s vision and goals, your time is spent doing what makes sense for your life.
- You have more time with family and friends. The average American spends over half their waking hours at work (even more than that if they commute). When we’re not at work, we’re usually spending time with other people who work all day, too-so many people don’t get enough “downtime” with friends who aren’t in the same field as them! Once you reach financial independence, though…well…you can finally relax!
- You have more opportunities for travel as well as pursuing other interests outside of work: hobbies, volunteering opportunities (like Habitat For Humanity), etc., because there won’t always be someone else telling us what we have to do or need money from our employer so that we can afford those things ourselves!
What are the criteria for being FatFIRE?
To be FatFIRE, you must save enough money to live off your savings. It would help if you also had a high income and a low cost of living. We’ll discuss how much money you should have in the next section.
In addition to these two requirements, some lifestyle factors can help or hinder your progress toward financial independence:
- Location-the cost of living varies greatly depending on where you live. For example, San Francisco is one of the most expensive cities in America, while Wichita Falls is one of the cheapest! Find somewhere where housing costs less than average (or even free). If not possible, consider moving somewhere else within driving distance if necessary; it’s easier than most people think!
- Housing-this includes renting vs. buying and owning vs. renting out rooms/houses etc… There are pros & cons either way, so make sure whatever choice makes sense for YOU rather than following someone else’s advice blindly because “I heard buying was better.”
How do I get started?
To get started, you need to start saving. If you have money left over after paying for bills and other expenses, then use that money for savings goals. For example, if your goal is to retire at age 50 with $500k in investments (a common goal among FIRE enthusiasts), then put 10% of your income into retirement accounts until you have reached that number.
For those who are already retired or nearing retirement age but still have some time before reaching their goal, keep contributing as much as possible! You never know when an emergency might come up–and having extra cash on hand can help ease the pain if one does occur.
Once a person has reached their savings goal(s), they should invest those funds into assets that will likely continue growing over time (such as stocks). This way, when they withdraw money from these investments later on down the line, there will still be growth potential left over once taxes are taken out.
FatFIRE is a good example of a new trend in retirement planning: the FIRE (Financial Independence, Retire Early) movement.
This movement aims to achieve financial independence so that you can retire early and live off your savings.
To do this, you need to save up enough money and investments so that your passive income covers all your living expenses and then some. This means that even if your portfolio loses some value due to market fluctuations or inflation over time, it will still be able to support your lifestyle and any unexpected costs (like medical bills).
This movement aims to achieve financial independence so that you can retire early and live off your savings.
Financial independence means not working for money because your investments generate enough passive income for you to live on. It’s a way to retire early if that’s what you want, or it could mean continuing in your current career but with greater freedom from the constraints of working for someone else.
The basic idea behind it is that you save enough in your 20s and 30s to retire early and not have to work anymore.
If you’re a millennial, the basic idea behind FatFIRE is that you save enough in your 20s and 30s to retire early and not have to work anymore.
This means that instead of retiring at 65 or 70 like most people do today–and having to worry about money the rest of your life–you can retire with a better lifestyle than most people do! And what’s more: it doesn’t require special skills or talent. All it takes is discipline, determination, and some hard work (which most millennials already know how to do).
Nowadays, people are living longer – so retirement income will last longer than ever.
According to the Social Security Administration (SSA), life expectancies have increased significantly over the past century. In 1900, a 65-year-old man could expect to live another 13 years, and a woman would live another 17 years on average; today, those numbers are 18 years for men and 21 years for women.[1] That means if you retire at age 65 today, your retirement income will last longer than ever!
To prepare yourself for this reality: save more! If you’re not saving enough now so that your savings can cover all of your expenses during retirement (including health care costs), then start making changes by contributing more money into tax-advantaged accounts like an IRA or 401(k).
Financial independence means retiring from work earlier than most people do.
Financial independence is a goal for many people, but it’s a concept that has been introduced previously – earning enough income from your investments so that you no longer need an active income stream from employment or business.
Financial independence is not guaranteed to make you happy or free from worry. It may give you more time to focus on other things in life, but that doesn’t mean those other things will be easy! Some people find that the lack of structure makes them feel restless and bored; others work harder than ever because there’s nothing else keeping them busy during the day (or night).
But some people do find financial independence fulfilling–they want freedom from worrying about money so they can focus on other pursuits like family relationships, charity work, and hobbies outside their field of expertise (like playing guitar).
Conclusion
The term FatFIRE is a humorous way to describe the idea of financial independence, but it’s also an important one. The more people become financially independent and retire early. The better off our society will be. Those who retire early not only have more time for themselves but also for volunteer work and other important causes, such as helping others through charities or non-profits.
