Changing FIRE definitions
TLDR: FIRE definitions and ranges in INR and SGD
The FIRE range and the definitions keep moving but I wanted to update some definitions and ranges based on the latest from various reddit threads and other internet forums
So based on my own definitions
Monthly expenses = X amount
Misc expenses = Y% of X amount
Buffer for unknowns = Z% of X amount
Fire range = 12 * 25X monthly expenses to 12 * 100X monthly expenses depending on the type of FIRE
So here goes
Lean FIRE
Lean FIRE is essentially have the bare minimum basic expenses met using your retirement income. Living very frugally and keeping expenses to a minimum
INR
Monthly expenses = 40,000
Misc expenses = 10% of 40,000 = 4,000
Buffer for unknowns = 10% of 40,000 = 4,000
Total = (40,000 + 4,000 + 4,000) * 12 * 25 to (40,000 + 4,000 + 4,000) * 12 * 40
Range = 1.44 Crores to 2.3 Crores
SGD
Monthly expenses = 2,500 amount
Misc expenses = 10% of 2.500 amount = 250
Buffer for unknowns = 10% of 2,500 amount = 250
Total = (2,500 + 250 + 250) * 12 * 25 to (2,500 + 250 + 250) * 12 * 40
Range = 0.9 million to 1.44 million
Barista FIRE
Working on a low stress job while you reach the target with slightly better than lean FIRE target. You still have some income coming in so your lifestyle is marginally better than frugal.
INR
Monthly expenses = 50,000
Misc expenses = 10% of 50,000 = 5,000
Buffer for unknowns = 10% of 50,000 = 5,000
Total = (50,000 + 5,000 + 5,000) * 12 * 25 to (50,000 + 5,000 + 5,000) * 12 * 40
Range = 1.8 Crores to 2.88 Crores
SGD
Monthly expenses = 3,000
Misc expenses = 10% of 3,000 amount = 300
Buffer of unknowns = 10% of 3,000 amount = 300
Total = (3,000 + 300 + 300) * 12 * 25 to (3,000 + 300 + 300) * 12 * 40
Range = 1.08 million to 1.73 million
FIRE
More comfortable than Barista FIRE as your financial status is better and you are not dependent on a job to manage your retirement. Occasional splurges are allowed, but for the most part remain within your set budget and targets
INR
Monthly expenses = 70,000
Misc expenses = 15% of 70,000 = 10,500
Buffer for unknowns = 15% of 70,000 = 10,500
Total = (70,000 + 10,500 + 10,500) * 12 * 25 to (70,000 + 10,500 + 10,500) * 12 * 40
Range = 2.73 Crores to 4.37 Crores
SGD
Monthly expenses = 6,000
Misc expenses = 15% of 6,000 = 900
Buffer for unknowns = 15% of 70,000 = 900
Total = (6,000 + 900 + 900) * 12 * 25 to (6,000 + 900 + 900) * 12 * 40
Range = 2.34 million to 3.74 million
Chubby FIRE
More comfortable than FIRE as your financial status is better. You are able to enjoy a lifestyle without compromise for the most part. Relative freedom to spend on not just needs but also on most wants.
INR
Monthly expenses = 100,000
Misc expenses = 20 % of 100,000 = 20,000
Buffer for unknowns = 20% of 100,000 = 20,000
Total = (100,000 + 20,000 + 20,000) * 12 * 25 to (100,000 + 20,000 + 20,000) * 12 * 40
Range = 4.2 Crores to 6.72 Crores
SGD
Monthly expenses = 8,000
Misc expenses = 20 % of 8,000= 1,600
Buffer for unknowns = 20% of 8,000 = 1,600
Total = (8,000 + 1,600 + 1,600) * 12 * 25 to (8,000 + 1,600 + 1,600) * 12 * 40
Range = 3.36 million to 5.38 million
Fat FIRE
Fat FIRE is the next logical evolution of FIRE where you are truly comfortable. No compromise on lifestyle or spending. Vacations and fancy cars are de rigour. A comfortable retirement.
INR
Monthly expenses = 150,000
Misc expenses = 25 % of 100,000 = 37,500
Buffer for unknowns = 25% of 100,000 = 37,500
Total = (150,000 + 37,500 + 37,500) * 12 * 25 to (150,000 + 37,500 + 37,500) * 12 * 40
Range = 6.75 Crores to 10.8 Crores
SGD
Monthly expenses = 12,000
Misc expenses = 25 % of 12,000 = 3,000
Buffer for unknowns = 25% of 12,000 = 3,000
Total = (12,000 + 3,000 + 3,000) * 12 * 25 to (12,000 + 3,000 + 3,000) * 12 * 40
Range = 5.4 million to 8.64 million
Morbidly Obese FIRE
Yes I know, it exists. Not sure whether you will call this FIRE at this point as there is no real limit as per this definition, but hey all you multi millionaires who want to FIRE this is for you.
INR
Monthly expenses = 500,000
Misc expenses = 50% of 500,000 = 250,000
Buffer for unknowns = 50% of 500,000 amount = 250,000
Total = (500,000 + 250,000 + 250,000) * 12 * 25 to (500,000 + 250,000 + 250,000) * 12 * 100
Range = 30 Crores to 120 Crores
SGD
Monthly expenses = 20,000
Misc expenses = 50% of 20,000 = 10,000
Buffer for unknowns = 50% of 20,000 = 10,000
Total = (20,000 + 10,000 + 10,000) * 12 * 25 to (20,000 + 10,000 + 10,000) * 12 * 100
Range = 12 million to 48 million
Conclusion
As the name of my blog would indicate my dream is to get to Fat FIRE but I would happily settle for Chubby FIRE.
Where do you see yourself in this range?
When do you think you will get there?
Are your targets within this range?
Good luck and Happy Investing.
