Traditional FIRE 🔥
The Balanced Path to Financial Independence
Target Spending
$40,000-60,000/year
FIRE Number
$1M-1.5M
Timeline
10-20 years
Savings Rate
50-70%
What is Traditional FIRE?
Traditional FIRE is the "Goldilocks" approach to financial independence—not too lean, not too fat, but just right. It targets a comfortable middle-class retirement lifestyle with annual spending between $40,000-60,000, requiring a portfolio of $1-1.5 million based on the 4% rule.
The Traditional FIRE Lifestyle
🏠 Housing
Modest home owned outright or reasonable rent in a medium cost-of-living area
🚗 Transportation
Reliable used cars, possibly one per household member, minimal car payments
🍽️ Food & Dining
Home cooking with occasional restaurants, reasonable grocery budget
✈️ Travel
1-2 vacations per year, mix of domestic and international travel
🎯 Entertainment
Hobbies, streaming services, occasional events and activities
🏥 Healthcare
Health insurance through marketplace or part-time work
Sample Traditional FIRE Budget
Annual Spending: $50,000
| Housing (mortgage/rent, utilities, maintenance) | $18,000 |
| Food (groceries + dining out) | $8,000 |
| Transportation (car, insurance, gas) | $6,000 |
| Healthcare (insurance + out of pocket) | $7,000 |
| Travel & Entertainment | $5,000 |
| Personal & Miscellaneous | $6,000 |
| Total Annual Spending | $50,000 |
| FIRE Number (×25) | $1,250,000 |
Path to Traditional FIRE
Example: Software Engineer Journey
Income: $85,000/year
Take-home: $65,000/year
Living Expenses: $25,000/year
Savings: $40,000/year (62% savings rate)
Time to $1.25M: ~16 years (assuming 7% returns)
Traditional FIRE Strategies
1. The House Hack
Buy a duplex or home with roommates to reduce/eliminate housing costs
2. Geographic Arbitrage
Earn in high-cost areas, retire in medium-cost locations
3. Side Hustle Acceleration
Add $1,000/month in side income to cut years off your timeline
4. Tax Optimization
Max out 401(k), IRA, and HSA for tax-advantaged growth
Is Traditional FIRE Right for You?
✅ Good Fit If You:
- Want balance between saving and enjoying life now
- Prefer a middle-class lifestyle without extreme frugality
- Have moderate to high income ($60k+)
- Value some luxuries but not excess
- Want to retire fully vs working part-time
❌ Consider Alternatives If You:
- Want to retire ASAP (consider Lean FIRE)
- Desire luxury lifestyle (consider Fat FIRE)
- Have very low income or high debt
- Live in extremely high-cost areas
- Want to keep working part-time (consider Barista FIRE)