FIRE basics · 3 min read
Lean, fat, barista, coast: which kind of FIRE fits you
Four ways to reach financial independence, from a CHF 2,500 lean budget to a CHF 7,000 fat one. What each needs in francs and who it suits.
Education, not financial advice. Use at your own risk. Read the full disclaimer
In short
- Lean, fat, barista and coast FIRE are one idea at different spending levels and with different amounts of paid work.
- At a 3.5% withdrawal rate, a CHF 2,500 lifestyle needs about CHF 857,000 and a CHF 7,000 lifestyle about CHF 2,400,000.
- Barista and coast FIRE trade some years of paid work for a much smaller pot.
FIRE is not one lifestyle (if the term is new, read what FIRE is first). People reach independence in different ways, and the label depends on how much you spend and whether you still earn something. Here are the four common types, with the pot each one needs in Swiss francs.
The four types
| Type | The idea | Monthly spending | Pot at 3.5% |
|---|---|---|---|
| Lean | Spend little, stop early | CHF 2,500 | CHF 857,000 |
| Standard | Keep today’s lifestyle | CHF 4,000 | CHF 1,371,000 |
| Fat | Spend freely, stop later | CHF 7,000 | CHF 2,400,000 |
| Barista | Part-time work covers some costs | CHF 4,000, minus income | see below |
| Coast | Stop saving, let the pot grow | any | see below |
Lean
Lean means a low, deliberate budget. It reaches independence soonest, but leaves little margin. In most Swiss cities, rent and health insurance take a large share of CHF 2,500, so lean often goes together with a cheaper place to live or a move abroad. See retiring abroad from Switzerland.
Fat
Fat means a comfortable budget with room for travel, a car and surprises. It needs a much bigger pot, so it takes longer. Its advantage is safety: a large buffer survives mistakes.
Barista
You stop full-time work, but earn part-time income to cover some costs. Every CHF 1,000 a month of part-time income removes CHF 343,000 from the pot you need.
| Part-time income | Pot needed for CHF 4,000 spending |
|---|---|
| CHF 0 | CHF 1,371,000 |
| CHF 1,000 | CHF 1,029,000 |
| CHF 2,000 | CHF 686,000 |
| CHF 3,000 | CHF 343,000 |
In Switzerland, working part time also keeps AHV and pension fund contributions going, which protects your pensions.
Coast
Coast FIRE means you have already saved enough that, left alone, the pot will grow into your full number by 65. You only need to earn enough today to pay your current bills. For a CHF 1,371,000 target at 65, with a 3.5% real return, you need about:
| Your age today | Pot needed to coast |
|---|---|
| 30 | CHF 411,000 |
| 35 | CHF 489,000 |
| 40 | CHF 580,000 |
The younger you are, the less you need, because time does the work. The risk is that you must still earn for 30 years or more.
How to choose
Ask three questions. How low can I comfortably spend? Do I want to earn something I enjoy? How much risk can I take? Many people start lean in mind, end standard in practice, and use part-time work as a safety valve.
Start from your FIRE number and test the effect of the savings rate. If the lean path appeals, read you need less than you think. For the end of the story, see rent for life, die with zero.
Next step
Open the calculator and try a lower spending figure to see a lean version of your plan.
Try it with your numbers
Try your own mix of spending and part-time income in the calculator.
Starts with
- Age 32
- Spend CHF 3’000 / month
- Save CHF 1’800 / month
- Saved CHF 40’000
Free and private. Your numbers stay on your device. Estimates for planning, not advice. Use at your own risk.
Keep reading
The numbers
Your FIRE number: how much is enough in Switzerland?
Multiply yearly spending by 25 to 30 for a first answer, then adjust for AHV, pension fund and Pillar 3a. A table in francs and the Swiss twist.
The numbers
Savings rate: the number that sets how soon you are free
Your savings rate, not your salary, decides how many years you need. A table from 10% to 80% shows 66 years at the low end and 6 at the high end.
Mindset
You need less than you think: the case for a smaller number
Cutting CHF 1,000 from monthly spending can move your independence date by years. Where the money really goes and how to cut without feeling poorer.
Mindset
Rent for life, die with zero: spending your money on purpose
Most savers end life with far more than they needed. Why a plan that spends down on purpose can pay for more living, and the risks that stop you going to zero.