6 Reasons Why I Am Pursuing Fat FIRE

There are several reasons why people may pursue FIRE (Financial Independence, Retiring Early). Some people want more time to travel, more energy to focus on their health, or more money to provide for their families.

Fat FIRE is a more intense version of FIRE, which involves aiming for a more abundant retirement...and therefore more expensive. Because of this, it might require more work, planning, and funding, which could lead to a delayed (but still relatively early) retirement.

I frequently track my own FIRE numbers, which often go up and down. The changes are sometimes due to general cost of living increasing, or major life changes that could shift where my money goes. On average, my FIRE number has remained in the $1.5 million range, while my Fat FIRE number is usually in the $3 million range.

Here are my FIRE numbers calculated as of early 2024.

It can be helpful to calculate these numbers based your current expenses and the type of retirement you're aiming for. Even if you aim for Fat FIRE and don't achieve it for whatever reason, you have a much better chance of landing in the lean/coast FIRE territory. Below are some reasons why I'm personally aiming for Fat FIRE.

Reason 1: Rising Healthcare Costs

Healthcare expenses are increasing, and will continue to do so. If you want to learn about some sobering (and very expensive) statistics on healthcare costs, Elizabath Walker has a great piece on the numbers and reasons why healthcare costs are rising. (Each reason alone deserves its own blog post or novel.)

If you plan to live, plan to pay for healthcare expenses. Even if you're relatively healthy, there is always a chance that you may face an injury or illness that requires medical attention. Personally, I live with a condition (endometriosis) that has required expensive medications and surgery. There is no cure, so it's not going away anytime soon.

Because I'm self-employed, I pay out-of-pocket for my health insurance and health savings account (HSA). The good news is that I don't have an employer forcing me to choose, and I can "shop around" for the best insurance. The bad news is that I still have to pay the full amount for it. 😩 Each year I max out on my legal contribution limit for my HSA. I aim to not touch these funds so that they can grow tax-free, and they are available for when (not if, when) I need them.

If you want information on the benefits of an HSA or some tips on keeping yourself healthy on your FIRE journey, check out these posts:

• Why You Need a Health Savings Account For Retirement: 13 HSA Benefits to Consider

• "I just won't get sick or injured" is NOT a Healthcare Plan: Investing in Health Through FIRE

Reason 2: Freedom to Travel Comfortably

I adore traveling, and last year I had the opportunity to travel to some beautiful places domestically and internationally. For my first trip of 2023, my partner and I stayed at a lovely cabin in Petit Jean State Park in Arkansas. We hiked beautiful trails, got delicious food at a local farmer's market, and were forced to unplug due to lack of internet/phone connection. It was a short weekend trip, but it motivated me to plan more trips that year. In 2023 I traveled to Alexandria, VA; District of Columbia; Dallas, TX; Madrid and Barcelona in Spain; and Kansas City, KS.

These trips required time off of work, careful planning, and travel funds. While I have a travel credit card to help boost my funds with points, I appreciate the freedom that a bigger budget offers. It means I can opt for a roomier seat, which makes a huge difference when traveling internationally. It means that if I want to stay at a nicer and more comfortable hotel, I can do so without guilt. It also means that I can spend extra on dining out, which is one of my TOP joys of traveling.

Reason 3: Dining Out, Spa Days, and Other Bougie Things

I like nice things. They're, well...nice! I love going out to eat, especially at restaurants with amazing foods, drinks, and ambience. Lately my spa trips have been routine self-care, especially because I sit for so many hours at a time during work. I've grown to appreciate the little extra things for myself that bring joy, contentment, and general comfort.

Purchasing nice things for yourself can provoke a lot of guilt, and this is something that I've had to work on over the years. In his book I Will Teach You To Be Rich, Ramit Sethi describes different examples of conscious spending (versus "cheap" or "mindless" spending). My favorite example is of his friend who (responsibly) spends thousands of dollars per year on shoes because she loves them so much! He writes, "Conscious spending isn't about cutting your spending on everything. [...] It is, quite simply, about choosing the things you love enough to spend extravagantly on -- and then cutting costs mercilessly on the things you don't love."

For me, conscious spending involves investing in things or experiences that support my own self-care and happiness. These include:

• Hiring a housecleaner every other week (so that I can focus on work or fun).

• Getting a haircut and keratin treatment every few months.

• Getting a massage and facial every 6-8 weeks.

• Going out to eat at a great restaurant with my partner, family, and/or friends.

• Upgrading to a nicer airplane seat or hotel to be more comfortable.

• Taking a fun class for intellectual self-care and enrichment.

I will note that because I'm still on my path to FIRE, not all of my earned income goes to these bougie things. I still have bills to pay, money to save/invest, and a mortgage to pay off. I follow a lot of the standard advice when it comes to cutting back on expenses, like using my local library for entertainment, opting for free/cheap activities like hiking, thrifting or using clothing until it wears out, etc. I also recognize that a lot of this is possible now because my income has increased over the years, and it's greatly increased since deciding to have my own private practice for work.

Reason 4: Breadwinning and/or Supporting Future Dependents

As I and my loved ones get older, this is an area that I find myself thinking about more often. Currently, I'm the breadwinner for myself and my partner. It's a position that is a source of both pride and stress. I appreciate being lucky enough to support us both, but it also requires a lot of thought, discipline, and careful planning.

Things that we've experienced (or witnessed loved ones experiencing) include issues like:

• An unexpected medical emergency of a dependent that requires immediate funds for treatment.

• An unexpected medical emergency of a breadwinner that suddenly halts income.

• An ailing or aging parent that requires caregiving support.

• A babysitter or nanny suddenly no longer being able to care for a family member.

• School expenses rising to the point of potentially impacting someone's ability to graduate with their degree.

Being able to support loved ones or dependents means so much more than paying the day-to-day expenses. It also means being prepared for when additional support might be needed for one's family/community.

Reason 5: Financial Generosity

This is a little bit similar to the previous reason. Sharing wealth is a value that is very important to me. I feel lucky to be in a position now where I can donate to causes that I care about, such as my monthly contribution to Planned Parenthood.

Sharing the wealth may also look like contributing to more personal causes, like funding the education or small business of a loved one. For some, it might be donating to their church so that their community may be supported, especially during hard times. It could also be the act of setting up a hefty life insurance policy so that you can distribute wealth to loved ones and important causes after you pass away.

Reason 6: Above All Else, I Value Comfort

Comfort is a term that means different things to different people. For me, comfort means being safe and warm in my own home. It means having enough of a savings fund to tackle whatever emergency will (not may, will) come. It means being able to pay for my own medical treatments if my insurance is not willing to bend and cover a critical procedure for me (a far too common thing for women). It means having the funds to support myself and my partner through our needs and creative pursuits. It means not ever having to stress about money, and trusting that my money has my back.

QUESTIONS: What is your FIRE number? What FIRE type are you pursuing and why?