FatFIRE is a State of Mind

On Monday we will be airing an episode on The What’s Up Next Podcast about one of this communities favorite topics: fatFIRE. We love this topic because it smacks not only of success (about making it to financial independence) but also breaking the game. To the oh so frugal at heart, it is wonderful to wag your finger at luxury and call it your bitch. Seriously. But after this podcast episode recorded and I have listened to it a few more times, I can only come to one conclusion. FatFIRE is a state of mind much more than it is physical or logical entity (yes, this sounds like a post I recently wrote after recording the episode).

What do I mean? Can’t we logically map out a definition and go by that? I guess we could, but it doesn’t nicely encompass the phenomenon. In my experience, fatFIRE has much more to do with the sense of having enough or even more than enough.

But it’s just that, a feeling.

The Undefinable

I have heard so many different definitions of what it is to be fatFIRE. Some of those focus on net worth. Others focus on spending. And yet others concentrate on some amorphous idea of luxury. In the end we are left with a basic question.

Are we talking about accruing wealth, spending frivolously, or owning and experiencing expensive things?

And that’s where it gets a little hazy. Because most of the people I know who are familiar with the term think more of fatFIRE as a state of mind. Sure they save lots of money, but they rarely spend frivolously or own outrageous non investment assets.

They call themselves fatFIRE, and yet still save outlandishly, travel hack, and are as frugal as they were when they were poor. Old habits die hard.

The Joy of Possibility

I’m stuck with an undeniable view of what luxury actually means in our community. Luxury means having the ability to spend without concern. Notice how I say, having the ability. Because no one who worked this hard to get to financial independence can just flip the switch and start spending.

Thus fatFIRE is a state of mind. Ask the majority of people who consider themselves in this category, I would venture that most spend less than 100K per year. How in the world could that be considered fat? There is only so much that can be purchased with that amount of expenditures. Only so many adventures one can have.

We are talking more here about possibilities and probabilities. We feel that the extra cushion itself is luxury, instead of what that cushion could afford us.

Loosening The Reigns

Of course there is some loosening of the reigns. Maybe a first class ticket here or there (if it hasn’t been travel hacked). Maybe hiring a housekeeper from time to time. There are some things that even we are willing to pay money for.

But I will restate the fact. FatFIRE is a state of mind. Many of us long ago fell in love with our frugal and money optimized ways. We consider each smart move just another example of winning the game.

Winning the game looks a lot more like an optimized and efficient life than it does champagne wishes and caviar dreams.

Take that Robin Leach

Final Thoughts

I believe that fatFIRE is a state of mind. That very few in this community actually want to exercise that state of mind. Instead we want all the safety and comfort of being able to afford luxury, and none of the actual experience of using it.

You can’t teach an old dog new tricks.

We are pretty happy with the tricks we have already learned!