Welcome to our FatFIRE Interview Series! In this blog, we delve into the stories of individuals who have achieved or are on the path to achieving FatFIRE—an ambitious financial independence and early retirement goal characterized by a high level of financial security and luxury. FatFIRE stands for “Financial Independence, Retire Early” with a focus on a comfortable, often lavish lifestyle funded by a substantial nest egg.
Through these interviews, we aim to uncover the diverse strategies, mindsets, and experiences of those who have navigated the journey towards financial freedom. Whether you’re an aspiring FatFIRE enthusiast or simply curious about how others have reached this milestone, these conversations offer valuable insights and inspiration.
Join us as we explore the unique paths, challenges, and triumphs of FatFIRE achievers, and discover what it truly takes to attain financial independence on your own terms.
If you would like to be featured in one of our interviews, please feel free to reach out.
Can you tell us a little about yourself, your family, and your background?
I’m in my late 30s, married with two young kids. We live in Mountain View, CA. My spouse and I both come from middle-class families, and financial stability was something we always valued. We were taught the importance of hard work and saving from a young age. I have a background in engineering, and my spouse works in healthcare. We both pursued higher education, which laid a solid foundation for our careers. Our journey to FatFIRE wasn’t something we planned from the beginning, but over time, as our careers progressed, we started to see the possibilities.
What is your current occupation and household income?
Currently, I’m working as a senior software engineer, and my spouse is a nurse practitioner. Together, our household income is around $350,000 per year, thanks to some promotions and strategic job changes over the years. While this income might seem high, living in a high-cost-of-living area means we have to be intentional with our spending and saving. We’ve also worked on diversifying our income streams, which has helped accelerate our FatFIRE journey.
What is your current net worth, and how is it broken down?
As of now, our net worth is around $2.5 million. The bulk of it, about $1.5 million, is in index funds and ETFs. We also have $500,000 in real estate equity, split between our primary residence and a rental property. The remaining $500,000 is divided between cash savings, retirement accounts, and a small allocation to individual stocks and alternative investments. We’ve been focused on growing our investment portfolio while keeping a healthy cash reserve for emergencies.
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What inspired you to pursue FatFIRE?
The concept of FatFIRE appealed to us because it offered the chance to achieve financial independence without having to sacrifice our current lifestyle. We didn’t want to retire early only to live a frugal life; we wanted the freedom to travel, enjoy hobbies, and spend time with our kids without worrying about money. As we learned more about FatFIRE, it became clear that it aligned perfectly with our values and long-term goals. It was about building a life where work is optional, not a necessity.
How do you define financial independence, and what was your target number for FatFIRE?
For us, financial independence means having enough passive income to cover our living expenses without relying on a traditional job. Our target number for FatFIRE is $5 million. This amount would allow us to maintain our current lifestyle, including travel, dining out, and other luxuries, while still having a safety net for unexpected expenses. We calculated this number based on our annual spending and the 4% withdrawal rule.
What steps did you take to start your FatFIRE journey?
We tracked our spending, maximized our savings rate, and prioritized paying off high-interest debt. Once we had a solid emergency fund, we began investing aggressively in index funds and real estate. We also focused on increasing our income through job advancements and side hustles. Automation was key—we automated our savings and investments to ensure we stayed on track without having to think about it daily. We also educated ourselves on tax strategies to keep more of our earnings.
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What investment strategies did you use to build your wealth?
We took a long-term, diversified approach to investing. The majority of our portfolio is in low-cost index funds, which have historically delivered solid returns. We also invested in real estate, both for its potential appreciation and as a source of passive income. Additionally, we kept a small portion of our portfolio in individual stocks and alternative investments like peer-to-peer lending and cryptocurrencies, though we treated these as high-risk, high-reward opportunities.
How do you balance maintaining a high savings rate with enjoying life along the way?
Balancing saving with enjoying life has been a challenge, but we’ve learned to prioritize what matters most to us. We focus on spending intentionally—splurging on experiences that bring us joy, like family vacations, while cutting back on things that don’t add much value. We also set up a “fun fund” each year, a portion of our budget dedicated to guilt-free spending. This approach helps us maintain a high savings rate while still living a fulfilling life. It’s about finding that sweet spot between saving for the future and enjoying the present.
Can you share a particularly rewarding moment or milestone in your FatFIRE journey?
One of the most rewarding milestones was when we hit our first $1 million in net worth. It felt like a validation of all our hard work and discipline. Another key moment was when we bought our first rental property. It was a big step toward diversifying our income streams, and seeing those rent checks come in each month was incredibly satisfying. These milestones not only brought us closer to FatFIRE but also gave us the confidence that we were on the right path.
How has your perspective on work and career changed since achieving or pursuing FatFIRE?
Pursuing FatFIRE has shifted our perspective from seeing work as an obligation to viewing it as a choice. We’re more focused on finding meaning in our work rather than just climbing the corporate ladder. Knowing that we’re not tied to our jobs for financial reasons has been liberating. It’s also allowed us to be more selective about the jobs we take, ensuring that they allow for work-life balance and align with our personal values and long-term goals. Work has become something we do because we want to, not because we have to.
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Have you retired yet, and If not, when do you plan to retire?
We haven’t retired yet, but we’re getting close. Our plan is to reach full FatFIRE by the time we’re 45, which is just a few years away. Right now, we’re in what we call the “coast phase,” where our investments are growing enough that we could slow down or take a break if we wanted to. We’re taking this time to explore different hobbies and passions so that when we do retire, we’ll have a clear sense of how we want to spend our time.
What advice would you give to someone just starting their FatFIRE journey?
Start by getting clear on your goals and what financial independence means to you. It’s important to have a solid plan, but be flexible enough to adapt as your life circumstances change. Focus on increasing your income, whether through career advancement, side hustles, or investments, and always live below your means. Automate your savings and investments to make it easier to stay on track. And most importantly, enjoy the journey—FatFIRE isn’t just about the destination; it’s about creating a life you love along the way.
What lifestyle changes have you made since achieving or pursuing FatFIRE?
We’ve become more intentional with our purchases, focusing on quality over quantity. We’ve also prioritized health and wellness, investing in activities like yoga, hiking, and cooking healthy meals at home. Additionally, we’ve started to travel more frequently, taking extended trips more often. These lifestyle changes have not only aligned with our FatFIRE goals but have also improved our overall quality of life.
How do you plan to spend your time and resources in early retirement?
In early retirement, we plan to spend more time traveling and exploring new cultures. We also want to focus on hobbies and projects that we’re passionate about, like volunteering, writing, and maybe even starting a small business. We’re excited about the opportunity to spend more time with our kids, helping them grow and explore their own interests. Our goal is to use our time and resources in ways that bring us joy and fulfillment while also giving back to our community.
How do you ensure that your FatFIRE plan is sustainable in the long term?
To ensure our FatFIRE plan is sustainable, we’ve built in several layers of security. We’ve diversified our investments to reduce risk, and we plan on a conservative withdrawal rate to ensure our portfolio lasts. We’ll also have a flexible budget that will allow us to adjust our spending if market conditions change. Additionally, we’ll keep up with our skills and professional networks, giving us the option to take on part-time work or consulting if needed. Regularly reviewing and adjusting our plan helps us stay on course.
What future goals or projects are you excited about now that you have more financial freedom?
With more financial freedom, we’re excited to pursue several long-term goals. We want to travel extensively, including spending several months living in different countries. We’re also interested in starting a passion project—possibly a nonprofit or a business. Additionally, we’re looking forward to dedicating more time to personal growth, whether through education, creative pursuits, or wellness activities. Having the freedom to choose how we spend our time is incredibly empowering, and we can’t wait to see where it takes us.
