Second Generation FIRE, Parental Role Models, And Rat Poison

Love it or hate it, the FIRE (Financial Independence, Retire Early) movement has gained tremendous popularity over the last decade with no hint of slowing down anytime soon. Along with that comes second generation FIRE, describing the children of pioneering FIRE adherents.

There is no arguing the importance of FIRE’s primary principles of living below your means, having a high savings rate, and determining what your best life looks like. However, achieving FIRE can be difficult, despite having good parental role models or being the offspring of first-generation parents.

Determining what your best life looks like is a precursor to deciding which FIRE path is right for you or whether or not you even subscribe to the early retirement portion of FIRE or choose to focus on financial independence only. Below I outline the most popular versions of the movement.

But that’s not all! I also throw down a no holds barred dive into my generational past and discuss exactly what led me to pursue financial independence. And yes, rat poison played a role.

The Varieties of FIRE

Fat FIRE = 2.5M saved to fund a 100k annual lifestyle
FIRE = 1M saved to fund a 40k annual lifestyle
Lean/Barista FIRE = <1M saved to fund a <40k annual lifestyle (often supplemented with side hustles/second jobs for income)
FIOR (Financial Independence/Optional Retirement) = Adherents employ the principles of pursuing FIRE but do not necessarily retire early. They achieve a nest egg that is equal to or greater than 25x their annual expenses and have THE OPTION to retire early.