The FIRE (financial independence/retire early) movement has gotten quite famous in the last  couple of years in India. Every investor wants to achieve FIRE these days  

What is FIRE  

FIRE or Financial independence to retire early is all about creating enough wealth for yourself as  early as possible, so that you are financially independent and free from worries of money. Once  you achieve FIRE, your wealth is enough to generate an inflation-adjusted income for you  which lasts your lifetime 
 

Various types of FIRE  

Normal FIRE  

Normal FIRE is when you want to create enough wealth which can sustain your current lifestyle  and desires for all your life. Which means that going forward your expenses, your vacations,  your spendings, your outings, your desires will be maintained at roughly the same level. Normal FIRE is something which most people will like to pursue.  

Lean FIRE  

Lean FIRE is a concept where you are ready to compromise on your expenses and lifestyle,  and ready to live lower expenses. A lot of times it may not be possible for a person to achieve  normal FIRE. This is like a little compromised version of normal FIRE.  

Fat FIRE  

Fat FIRE is exactly the opposite of Lean FIRE, where you want to spend your life like a king  and want to freely spend money after FIRE. You don’t want to restrict yourself and  take expensive vacations etc. In which case obviously, you need a much bigger corpus to last  all your life.  

Coast Fire  

A person is said to have achieved Coast FIRE when he/she has enough corpus already which  will grow to FIRE corpus in the future without the need for any new investments. This simply  means reaching a point, where you just have to earn money equivalent to your monthly  requirements and wait for 5-10-15 years to achieve the actual FIRE 

FIRE is a concept and based on mathematical calculations. A small difference in inflation or  returns assumption can change the target amount or target year by a big margin