Personal Finance

What's the difference between FIRE, ChubbyFIRE, and FatFIRE? The Internet Weighs In

David Beren

Published: February 23, 2025 1:24 pm

One of the most popular financial movements in the US right now is the FIRE movement. Standing for financial independence and retire early, the hope is that by saving early on in life, people will have the opportunity to retire early and enjoy life to its fullest without the burden of work. 

While Kevin O’Leary might not be a huge fan of this movement, its popularity is indisputable. However, things get a little murky because, within the FIRE movement, there are a few different groups, including LeanFIRE, ChubbyFIRE, and FatFIRE, which begs the question of how they differ. 

Well, this is precisely what one Redditor is asking in r/ChubbyFIRE in his post, as he hopes to define them in a way that makes sense to anyone who wants to try this lifestyle. In what can only be described as a miracle, this Reddit post happens to be one where the commenters mostly agree with everything as well. 

Living LeanFIRE

If you’re considering jumping into the LeanFIRE movement, the consensus is that you live frugally, often on less than $50,000 annually. In this Redditor’s post, they take it one step further and say that LeanFIRE should likely be someone living at the 25% income percentile. 

At this percentage, you would likely have around $35,000 to live on annually (based on a household income percentile calculator from DQYDJ), which might be doable if you are very lean on spending and already have a house and car paid off. The reality is that this income would mean you are still making more than 25% of all American households without a job. 

To hit this lifestyle, you would want to look at the Safe Withdrawal Rate. This number often called the SWR, is how anyone in the FIRE movement can decide where they stand. This post highlights that, on average, you should have around $860,000 saved with a 4% SWR, $980,000 with a 3.5% SWR, and approximately $1.144 million at a 3% safe withdrawal rate. 

The FIRE Numbers

Should you describe yourself as someone in the category, you are likely in a position where you can live passively on a medium household income without working. This would place you in a middle-class lifestyle without ever needing to step into the corporate or consulting world again. The hope is that your house is also paid off, giving you even more disposable income. 

According to the Redditor, the agreed-upon definition here would be around $70,181 in passive income annually, meaning a $1.75 million investment with a 4% safe withdrawal rate. You’d need a little closer to $2.02 million at a 3.5% rate and around $2.36 million at 3%. 

Go Go ChubbyFIRE

Congratulations to anyone moving into the ChubbyFIRE world, you’re in a pretty great position. At this level, you’re likely living close to the 80th percentile of income, which is a great place to be. This is roughly equivalent to around $149,212 per year, and while this won’t let you travel indefinitely, you can eat out, travel a little, and enjoy your life. 

The reality is that at this level, at a 4% safe withdrawal rate, you likely have around $3.7mm sitting between investments, cash, and stocks. At the ChubbyFIRE level, if you want to live around a 3.5% safe withdrawal rate, you should have around $4.26 million, and lastly, at a 3% safe withdrawal rate, you will be around $4.97 million in total investments. 

Making It With FatFIRE

Double congratulations to anyone who has reached the FatFIRE level, as you’re living in the top 10% of households by income. What’s most notable is that this income is all passive, as you have left the grind of working every day behind. To earn around $212,110 in investments, you want to have around $5 million, and that’s just the beginning. 

At $5 million, you’re not going to buy yourself a yacht or a private jet, but you’re set for life. You can keep pushing and building your portfolio to $7.1 million when you can take out $286,301 at 4% every year, putting you in the 95th income percentile. Better yet, jump to $14.25 million and pull $570,00 every year as a member of America’s 99% income percentile.