Lean FIRE
Reaching financial independence with a deliberately low annual spending level, requiring a smaller portfolio.
Lean FIRE is financial independence built on a frugal budget. Because your annual expenses are low, your FI Number is correspondingly smaller and you can reach it sooner. Practitioners often target spending well below the national household average, sometimes through geographic arbitrage, paid-off housing, or simply low-consumption preferences.
The tradeoff is margin. A lean budget has less room to absorb surprises — a major medical bill, a roof replacement, a stretch of high inflation — without belt-tightening or returning to work. Lean FIRE works best when the low spending is a genuine preference rather than a constraint you'll resent.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.