Fat FIRE: How to Start Your Journey to Luxury

Traveling, relaxing, and having BBQ Sundays in your backyard in your late 40s is the dream. Just the thought of not having to work a single day in life after a certain stage sounds alluring. How do you achieve it? Early retirement. FIRE movement. Fat FIRE to be specific. This category of FIRE is here to make the dream of Sunday BBQs come true. 

Financial Independence, Retirement Early (FIRE) is a financial trend that is characterized by excessive thriftiness and saving. The Fat FIRE

Fat FIRE (Financial Independence, Retire Early) is the ability to enjoy life in retirement without having to cut back on expenditures. If you are absorbing the Fat FIRE lifestyle, your investment income should exceed the cost of your best life’s living expenditures, so you can live without a job with leisure. 

You don’t require any additional employment or activities in your life. Moreover, if you are Fat FIRE, you may live in some of the most beautiful cities on earth without having to worry about money. That sounds as good as it is. 

Fat FIRE allows you to have all the exciting things that an individual can think of. It sanctions you to indulge in one of the most luxurious cities on the planet, where everything is wonderful: the people, the food, the nightlife, the arts and of course the weather is better. Consume only the best foods and beverages such as caviar, beef Wellington, pork rillette, and literally any plat du jour. You could voyage around the world for at least eight weeks every year while staying in four or five-star hotels and spending time with your significant other, as this means of living will let you breeze through life without having to work for another day. 

How to Achieve Fat FIRE

There are typically two ways to achieve Fat FIRE: either generate a high salary and put your extra money into a diverse portfolio of assets, or create a business in the hopes of making a good profit. We don’t have enough time (and the compounding that comes with it) to expand our asset base, since Fat FIRE is an early retirement plan that necessitates a lot of assets. As a result, in order to attain Fat FIRE, we must rely on strong cash flows or a big liquidity event.

There are two routes you can drive down when proceeding with Fat FIRE. One of the simplest methods to reach Fat FIRE is to earn a big salary. However, it’s much easier said than done. High levels of education, specialized skills, or difficult work are typically prerequisites for a high salary. Such positions can be found in the fields of law, health, technology, or finance. If you intend to take this path, you ought to:

• Obtain high-value credentials and skills: The first stage is to acquire credentials that are in high demand in the job market. This might be anything from having a degree in a profitable industry to having a particular set of in-demand technical abilities. 
• Maximize your revenue: After acquiring these abilities, it’s critical to persistently hunt for ways to boost your earnings. This can entail switching occupations to earn a greater wage, requesting increases, or accepting more responsibility at the office. All of these strategies may not be effective, but they should help you begin to determine what you need to do in order to increase your revenue even more.
• Dwell below your means: It’s crucial to do this even if your salary is larger, in order to save money. This does not imply excessive austerity, but rather enabling your extra savings to be put towards long-term growth investments. While some lifestyle creep is acceptable when you are traveling, you will need to be more stringent than most people if you want to attain Fat FIRE.
• Investing vigorously: You should be able to save and invest actively in a broad portfolio of assets if you have a sizable income. This may apply to investments in stocks, bonds, real estate, and other things that provide income streams. The sooner you start compounding your money to get Fat FIRE, the more you can invest and the earlier you get to retire.

Heading Towards FIRE With a Business

The other lane you can take is starting a business. Easier said than done, right? A possible quicker, but riskier, path to Fat FIRE involves starting a prosperous business and selling it. The objective is to create a company that can be liquidated for a profit that will enable you to achieve Fat FIRE, and if you are an adventurous and getting high on the adrenal rush kind of gal then this is definitely for you. One strategy would be as follows:

• Determine an issue to deal with: The initial phase in starting a successful business is identifying a problem that can be resolved for a particular set of people. Look for circumstances in which there are no or insufficient solutions currently.  You may use your expertise to offer a better one. In general, you have the option of solving a little issue for a big audience or a big issue for a small audience. Your whole company approach will be influenced by whichever road you take.
• Construct a business strategy: After you’ve discovered a worthwhile issue to address, put together a thorough business strategy. Your company model, target market, marketing and sales strategy, financial predictions, and more should all be included in this plan. It serves as your road map while you launch and expand your organization’s operations. It’s acceptable if this company strategy isn’t ideal at first. The most crucial step is to make a decision and then embark forward.
• Obtain financial assistance: If your venture isn’t lucrative right away, you’ll need some up-front money. This can be from a company loan, investors, or your own personal resources. Be aware of the dangers linked to each of these funding options and how they may influence the eventual disposition of your company.
• Establish and expand your business: It’s time to put your plan into action and expand your enterprise. This process entails developing and improving your product or service, luring clients, and growing. Keep in mind that operating a business sometimes entails working long hours and is challenging, particularly in the beginning. Before you can eventually discover a route out, this phase will probably take years, but it may even take decades.
• Sell your company: Since selling your company is your ultimate desire, you ought to devise an exit strategy as soon as feasible. This might entail locating potential purchasers or preparing the company for a potential IPO. 

In a Nutshell

The two methods mentioned here show several ways you might accomplish Fat FIRE in terms of your financial future. Each route has perks and drawbacks. However, they both show how a comfortable early retirement is possible with commitment, effort, and a little luck. An avenue to early retirement known as “Fat FIRE” empowers you to spend life without enormous financial restraints. You must first determine how much money you will require in retirement before you can accomplish such an ambitious aim. To gauge this, you can use the Maximum Spending Rule, the Desired Spending Rule, or some other benchmark.

With Fat FIRE, you can always have some wiggle room as it also allows you to create mistakes and opt for the most suitable means. Having a FAT mode de vie, certainly, is an experience in itself that can be greatly beneficial. Now go listen to “Luxurious” by Gwen Stefani and be rich.