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?
My name is Sarah, I am 43, and I work as a financial analyst in San Francisco, California. I grew up in a military family, which meant moving around a lot, but it also taught me resilience and adaptability. My husband, David, is a graphic designer, and we have a 10-year-old daughter, Emily, and an 8-year-old son, Jake. We love the arts, and our weekends often involve museum visits, concerts, and creative projects at home.
What is your current occupation and income?
I work as a senior financial analyst for a tech firm, earning around $180,000 annually. David, who runs his own graphic design business, brings in approximately $220,000 a year. Additionally, we have about $70,000 in income from rental properties, making our total household income around $470,000 annually.
What is your current net worth, and how is it broken down?
Our net worth is approximately $4.1 million. And here’s the breakdown:
$1.5 million in taxable investment accounts.
$1.2 million in retirement accounts.
$1.3 million in real estate equity.
$100,000 in a HYSA.
What inspired you to pursue FatFIRE?
The inspiration to pursue FatFIRE came from wanting to spend more time with my family and pursue passions that were often sidelined by my demanding job. Discovering the FatFIRE community showed me that achieving financial independence doesn’t have to mean sacrificing our lifestyle or ambitions but can actually enhance our ability to live fully and freely.
How do you define financial independence, and what was your target number for FatFIRE?
For us, financial independence means having enough passive income so that work becomes optional, and we’re free to do whatever we want. Our target number was $3 million, not including our house, which would give us an income of about $120,000. This amount would allow us to maintain our current lifestyle, including travel, education for our kids, and leisure activities. We also plan on moving to a lower COL area after retirement to make that income go much further.
What steps did you take to start your FatFIRE journey?
We started our FatFIRE journey by taking a detailed inventory of our finances and setting a budget to maximize our savings rate. We focused on advancing our careers to increase our income and saving aggressively (most years over 50% of our income). Automating our savings and investment contributions was also a key strategy.
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What investment strategies did you use to build your wealth?
Our investment strategy revolved around low-cost index funds to diversity and minimize fees. We also invested in rental properties, which provided a steady stream of passive income and appreciated over time. Additionally, we ventured into dividend-paying stocks for further diversification and income generation.
How do you balance maintaining a high savings rate with enjoying life along the way?
Striking a work-life balance and saving aggressively in San Francisco can feel like tightrope walking! But it’s definitely doable. The key is maximizing free and cheap fun in this amazing city. Thankfully, there’s a ton to offer: from free museum days and outdoor concerts in Golden Gate Park to tidepooling at China Beach or hiking Land’s End for epic city views. Take a bike and explore the waterfront, or pack a picnic for Dolores Park. Evenings can be filled with free community events or grabbing a board game with friends at a local coffee shop. Sure, we might have to skip fancy brunches and expensive nights out, but with a little creativity, San Francisco offers endless ways to experience the city without breaking the bank. The memories you make exploring hidden gems and soaking up the vibrant atmosphere are priceless!
Can you share a particularly rewarding moment or milestone in your FatFIRE journey?
One particularly rewarding moment in our FatFIRE journey was when we reached the point where we could comfortably help a family member in need without any financial strain. A close relative faced a significant medical emergency, and knowing that we had the resources to provide immediate and substantial support was incredibly fulfilling. It was a tangible reminder of why we pursued FatFIRE in the first place—not just for our own financial security, but to be in a position to make a meaningful difference in the lives of those we care about. Being able to step in and offer that kind of assistance was a milestone that reinforced the value and purpose of our journey.
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How has your perspective on work and career changed since achieving or pursuing FatFIRE?
Our perspective on work and career has shifted to a more relaxed and fulfilling approach. The most significant change is that we feel much less stressed about our careers. With a solid financial foundation in place, we have the freedom to focus on projects and roles that genuinely interest, or completely walk away from it all if we have to.
This financial security has allowed us to prioritize a healthy work-life balance, take time off when needed, and explore opportunities that we might have previously considered too risky. We can now pursue side projects, entrepreneurial ventures, or even part-time work without worrying about the financial implications. Overall, we now enjoy a greater sense of freedom and flexibility, making our professional lives more rewarding and less stressful.
What advice would you give to someone just starting their FatFIRE journey?
For someone just starting their FatFIRE journey, my advice would be to start with a clear plan and stay committed to it. First, define your financial goals and what FatFIRE means to you—understanding your desired lifestyle and the amount you’ll need to achieve it is crucial. Prioritize saving and investing as early as possible, taking advantage of compound interest over time. Diversify your investments to spread risk and ensure more stable returns.
Keep your expenses in check and live below your means, even as your income grows. It’s also essential to continuously educate yourself about personal finance and investment strategies to make informed decisions. Surround yourself with like-minded individuals who support your goals and can offer valuable insights and motivation.
Be patient and persistent, as reaching FatFIRE is a long-term endeavor that requires discipline and resilience. Finally, enjoy the journey—celebrate milestones along the way, and remember that achieving financial independence is not just about the destination but also about creating a fulfilling and balanced life.
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What lifestyle changes have you made since achieving or pursuing FatFIRE?
The most notable change is a greater emphasis on work-life balance, resulting in much less stress about our careers. This shift has allowed us to focus on roles and projects that truly interest us, without the pressure of climbing the corporate ladder.
We’ve also prioritized our health and wellness by adopting regular fitness routines, healthier diets. Travel has become a bigger part of our lives, giving us the opportunity to explore new cultures and experiences around the world.
We’ve found more time to nurture relationships with family and friends, which has been incredibly rewarding. We’re also able to support our loved ones financially when needed, providing assistance without any strain on our own finances.
How do you plan to spend your time and resources in early retirement?
We plan to spend our time focusing on a blend of personal fulfillment, adventure, and giving back. Health and wellness will be a top priority, so we’ll maintain regular fitness routines, explore new hobbies like cooking and photography, and practice yoga and meditation to ensure our overall well-being.
Travel is a big part of our plan, as we aim to explore different cultures and live in various parts of the world, immersing ourselves in new experiences. We also want to invest time in continuous learning by taking courses on topics that interest us and attending workshops and conferences to stay intellectually engaged.
Strengthening relationships with family and friends is crucial, so we’ll dedicate more time to nurturing those connections and being present in their lives. We’re excited to volunteer and contribute to causes we care about, whether through hands-on involvement or financial support.
Additionally, we might start a few passion projects or small businesses that keep us engaged and financially secure. Ultimately, we envision a balanced lifestyle that allows us to enjoy life while maintaining a secure and sustainable financial foundation.
How do you ensure that your FatFIRE plan is sustainable in the long term?
Even though we’ve reached our FatFIRE number, we continue to work and earn income, which provides an extra buffer and adds to our financial security. This ongoing income creates plenty of room for any unexpected expenses or market fluctuations that might come our way.
By the time we pull the plug, we might be closer to, or even under a 3% withdrawal rate from our investments instead of the standard 4%, ensuring our savings last longer. Diversifying our investment portfolio across various assets like stocks and real estate can also help mitigate the sequence of return risk.
Moreover, in retirement, we plan to continue earning some income through passion projects, part-time work, or consulting. This not only keeps us engaged and active but also supplements our investment income, further enhancing the sustainability of our FatFIRE plan.
What future goals or projects are you excited about now that you have more financial freedom?
One of our primary goals is to travel extensively and immerse ourselves in different cultures around the world. We plan to spend extended periods living in various countries, learning new languages, and exploring local traditions.
We’re also eager to invest more time in personal growth and continuous learning. This includes enrolling in courses on topics we’ve always been interested in, attending workshops and conferences, and possibly even pursuing advanced degrees or certifications in fields we’re passionate about.
Another significant goal is to start a few passion projects or small businesses. These could be related to our hobbies, such as photography, cooking, or writing, and they will allow us to stay engaged and creatively fulfilled while potentially generating additional income.
Finally, we’re looking forward to spending more quality time with family and friends. Strengthening these relationships and being present for important moments in their lives is a top priority for us.
