What Is LEAN FIRE? What are the Unique Benefits?

Last Updated on March 9, 2025 by Arurhose

LEAN FIRE is part of the independent financial movement you have undoubtedly heard about. One of the best benefits of LEAN is its accessibility, as many people aiming for some form of FIRE, achieve LEAN on the way.

In addition to popularity, most people target LEAN FI because it’s the most natural place to start. LEAN financial independence relies on individuals covering bare essentials and other mandatory, ongoing living costs. It’s also a very frugal way for someone to continue post-retirement. Essentially, this form covers an individual’s basic costs with a tiny amount left for luxuries.

A good LEAN example would be satisfying rent/mortgage, all bills (electricity, water, etc), no holidays/luxury items (in general), and if holidaying, nothing extravagant. The LEAN individual’s working income covers all other extras.  At this point, I should mention YouonFI is a Blog focused on Financial Independence without Retiring Early. I believe Financial independence should always have some form of work involved, both for continuous income and meaning to life.    

Who is LEAN FIRE For?

Anyone can achieve LEAN FI. It should be the primary goal for everyone on the FI journey. That said, the ideal person for this form of financial independence is a minimalist with simple tastes, habits, and expectations for life. Minimalism is about a state of mind, having a frugal environment and way of thinking, and living within a clear framework. In many ways, being efficient with just the right amount, just on time, not too little, not too much – very similar to Goldilocks and the 3 Bears.

Goldilocks and the 3 Bears.

In the story, we read about being ‘just right’ – the porridge, the chair and the bed. Being frugal and minimalistic is not about punishment; most LEAN FI achievers do not consider themselves suffering. Since financial independence is, first and foremost, a mindset, you must know who you are and what you want and then keep moving from there. I have a friend (Prince – not real name) who enjoys racing. Prince goes to the track with his motorcycle and fast-car friends; they ride hard and drive well. This activity is a costly hobby. Now, everybody has their thing which they like spending money on. Still, Prince’s financial situation does not support his hobby. Admittedly, Prince knows this and confesses to enjoying good and luxurious things, big houses, and pleasures he cannot afford.

Prince’s mindset is not ready for LEAN FI. A lot of critical life decisions are about priorities. Every adult has an idea of who they are and what they want to be. Achieving financial independence requires a lot of discipline, which could change who you plan to be. So, someone may start extravagant and, over time, become more frugal and prudent.

If you are still wondering if LEAN financial independence is something for you, start by asking yourself soul-searching questions about who you are. Who do you want to be, and what kind of life and values do you want?  

What Life Can Look Like When LEAN

A LEAN form of financial independence is very similar to an average living standard, depending on your country and city. Most people who achieved LEAN FI are not different from anyone else on the street. You might be surprised that they might even appear less economically well-off. Emphasis on the word appearance. In reality, most other people (not financially free) are in dire situations and one major disaster (car malfunction, etc.) away from being broke and depending on employment to survive. 

On average, you can expect a family who has achieved financial independence the LEAN way to have a home/ flat, another investment property, and two children (max); potentially three. More children make it more challenging to hit LEAN FI. Families with children may not have their kids go to higher education. In cases they do, higher education may be covered by the parents’ salary. Some couples have no children, so creating a LEAN goal is more straightforward. Amongst other reasons, I can’t entirely agree with having no kids; I know nothing motivates and brings meaning like having children. 

Many FI millionaires (not liquid cash) have a diversified portfolio and are the average person you pass on the street. I’m still on my FAT FI journey, and I have never been a spender on luxury things or things that one might see as expensive. Yet, when recently checking our FI numbers, my wife and I were shocked to see what we accomplished in 9 years and our current trajectory. However, if you saw me on the road, you wouldn’t look twice, though I know people who have less yet appear to live large. My only two exceptions to visible wealth are my car (bought in 2017, so quite old now) and my home.   

Benefits Of Going LEAN:

Whether you like enjoying the simple things in life or having more prominent tastes, there are benefits to achieving LEAN financial independence.  With LEAN financial independence, you are likelier to retire earlier than people achieving FAT financial independence. Wanting less reduces the amount of time and effort needed because your goal is more minor, meaning you can reach LEAN FI earlier, for example, in your 50s or 40s, as opposed to your 60s. 

Following the point mentioned above, achieving LEAN FIRE early in life also means more time living the life you want. This includes the added advantages of youth and energy. We tend to miss out on this (living life aspect) when too focused on our FI number. Sometimes, when you gain Financial independence is more important than being financially free. Sometimes, it’s better to hit half your target in your 50s and enjoy it, than hit your full target and be in your late 70s or 80s, having not experienced many things in life you would have wished to.

There is also the frugal living aspect. Minimalism, by default, protects you from many external sources (consumerism etc.) and circles of influence beyond your control. For example, I have a pretty simple lifestyle. I don’t go out often except for walks, running, sports, cinemas, etc. In addition, I work from home, and I have everything I need. I prefer to eat in, and I like cooking. In 2019, I was happy with everything I had, and then the Lock-downs happened. I was often asked how I managed, but I was good; the situation made little difference in my lifestyle. My life was great and, in some aspects, better because I didn’t have the social pressure to do certain things. However, empathised with friends I know, their discomfort and suffering, in contrast to my life, which remained steady. 

How Do You Go And Stay LEAN?

 Some simple steps to staying LEAN. First and foremost, understand your reason for pursuing financial independence, and then find out your financial independence number. Your number will require you to know who you are and your present and future expectations. Review your expenses and cut out unnecessary things. Another way of saying cutting out the fat. Focus on mandatory things such as your housing, food, transport, energy, clothing, and other aspects that aid your flourishing. Avoid obligations you don’t need. For debts you already have, make a debt plan to reduce what you owe every month. Only get the necessary debts, such as a mortgage. Even then, for necessary debts, make them efficient. For example, if you buy a house, choose a property in an affordable place. It’s better to spend $/£ 250,000 on a four-bedroom house out of town than $ 200,000 on a two-bedroom flat in town.

With less money spent and more value gained, you can pay off your mortgage quicker (at least down to the last 10%) and save yourself guaranteed tens of thousands in interest if you reduce the duration of your mortgage by overpaying. Save 30% to 40% of your earnings. Better still, if you are a couple, you could choose to live somewhere cheaper and aim to live on one income. This method requires one member to make enough money for both. In my current situation, I’m making enough money for both of us, and my wife uses her money to invest. Does that mean I’m super rich? No. It just means we have cut our spending down. Only essentials and minor luxuries, while I’ve also increased my income. A two-pronged approach.

Invest part of your savings in slow, steady index funds, side hustles, real estate, and yourself – such as certifications. Investing in yourself will increase your earning potential. It’s important to know that financial independence is a marathon. Slow, secure index funds are an excellent way to go. Don’t try to beat the stock market.  When you finally hit your target, withdraw a small percentage, replenished by compounding interest or other income streams. Many people use the 4% rule. This approach will make your money last in perpetuity (theoretically). Finally, keep this ongoing. Your side hustles, real estate, stocks, regular assessments, etc. LEAN FI will still require you to work; keeping things afloat is your new job.  

Final Thoughts: Should You Go LEAN?

The last point I want to make is that achieving LEAN FI is a psychological endeavour. If you’re naturally suited for LEAN financial independence, that’s great; if not, you’ll change along the way. Our desires, work, discipline, frameworks, and ambition affect our outcomes.  This means that you decide what is LEAN for you. After all, what is the difference between people having minimal aspirations and the income to meet their needs versus people having more luxurious desires and the income to meet their wants? Both people have desires, and both are generating income to satisfy their needs. If a person wants less and achieves, they are just as happy as someone who wants more and accomplishes. Who is to say which is LEAN and which is not? You decide your future. LEAN is gained along the way.