Personal Finance

I'm in my mid-20s and have banked $200k - sadly, I am about to lose my job and fear my early retirement dreams will be dead

Joey Frenette

Published: February 23, 2025 12:36 pm

If you’re like many other young financial overachievers who’ve saved up a six-figure sum in your 20s, you’ve opened many doors that lead to financial freedom. Indeed, the FIRE movement (short for financial independence, retire early) has taken the Reddit world by storm in recent years.

The FIRE movement comes in varying degrees of lavishness. Someone content with a frugal lifestyle (think shopping Great Value brands at Walmart while renting) can go down the route of “lean FIRE,” which entails a sustained retirement nest egg to sustain someone who’s lean on the monthly expenses.

Early retirement and its many variants

For those looking for an upgrade, there’s moderate FIRE, which will require a heftier retirement sum (or FIRE number) and likely a number of additional years in the workforce to achieve. On the extreme side, there’s “chubby FIRE,” which is a very comfortable retirement, and a rich, luxurious, and carefree retirement, “fat FIRE.”

Undoubtedly, “fat FIRE” may be aiming too high for many, while “lean FIRE” is likely closer to reality for many. Of course, the right flavor of early retirement will vary from individual to individual. And, of course, personal circumstances and spending patterns can change over time. I’m sure you’ve probably heard of a phenomenon called “lifestyle creep,” which sees people crank up their spending as their income rises.

Similarly, things can go the other way in “lifestyle deflation,” which sees people spend less and save more. Indeed, with the rise of “underconsumption core” and “no buy years” trending on social media, I do think “lifestyle deflation” (the opposite of lifestyle creep) could push a moderate prospective retiree aiming for chubby FIRE to go for moderate or even lean FIRE.

In any case, given a lean FIRE is easier to attain, I’d argue there’s no holding back today’s young savers, including those who may face an increase in layoffs moving forward, either due to automation or a sagging of the economy at the hands of tariffs or rising inflation.

Early retirement dreams shot down by a layoff?

In the case of this Reddit user, who’s in their mid-20s with $200,000 saved up but is worried about the ability to land on their feet after a layoff, perhaps “downgrading” one’s FIRE goals could make a lot of sense. Indeed, early retirement is different for everyone.

To some, it’s going on frequent Caribbean cruises. For others, it’s just about financial freedom and not necessarily about travel. After all, not everyone actually enjoys travel or spending hefty sums of cash just because it’s the norm for the retired. For someone who’s still young, I’d argue that it’s far too soon in the game to throw in the towel on early retirement. Sure, it could take some months to land another job.

However, one may land a better, higher-paying role that may have more room for advancement. That could put one in the wealth-building fast lane and open up the doors to early retirement, whether it be lean or fat in nature.

Either way, this 20-something is still in good standing. They’re what some would refer to as a HENRY (high earner, not rich yet). And they’re driving over a bit of a roadbump right now.

The bottom line

If the 20-something Reddit user triples down on their efforts to find a new job, I am confident in their ability to overcome the hurdle and get back on track to hit their FIRE goals. In the meantime, perhaps some “lifestyle deflation” could help them preserve their nest egg as they go on the hunt for work. Also, just because a “chubby FIRE” sort of retirement is off the table doesn’t mean a lean or moderate one won’t be in 10-15 years.