Forget Quiet Quitting, fatFIRE is the Newest Workplace Trend

All the talk about quiet quitting makes it seem like everyone hates their jobs and is just sleepwalking through the workday, but that’s not the case. There is another group of people who are doing the opposite. This movement is called FatFIRE. The acronym stands for Financial Independence, Retire Early. Fat refers to the abundant nest egg one must acquire to gain the financial independence to retire early.

This movement shares some of the sentiments of the quiet-quitting trend. The group doesn’t necessarily love their jobs, careers, and bosses; they just want to get out as quickly as possible. While quiet quitting is doing the bare minimum that a job requires, in pursuit of a better work-life balance, fatFIRE advocates the opposite. The mindset is to relentlessly focus on getting rich quickly. The end game is to retire young and rich.

People who ascribe to this philosophy are willing to put in the time and effort to make as much money as possible and then peace out and retire while they’re still young. These folks tend to work at big tech companies, high-powered law firms, are founders of startups, and those whose occupations lend themselves to providing generous compensation packages and stock options. With their disposable income, they’ll use the proceeds to invest in the stock or cryptocurrency markets, build businesses, and have a few side hustles.

FatFIRE Reddit

Reddit has an anti/work subreddit, but there is also a large r/fatFIRE group. This crowd eschews the traditional wealth management advice of drastically cutting costs and living a frugal lifestyle to save money. The more than 325,00 members talk about ways to get rich. The motivated, success-oriented people discuss stocks, business deals, how to find high-paying jobs, and other ways to make money and leave the workforce in their 30s or early 40s.

Their mantra is to “retire with a fat stash” and live off the dividends and payouts from their investments and side businesses. Many seek a cash flow of around $100,000 annually as the benchmark for calling it quits and leaving the work world. Their definition of having enough money to spend $100,000 yearly in retirement requires a portfolio of around $2.5 million.

The impetus for some people may be attributed to what they’ve seen happen to their parents. They loyally toiled away in dead-end jobs, got laid off, or needed to grind it out into their late 60s. By the time they could retire, the older generation didn’t have enough good years left to enjoy their so-called golden years. Rather than coasting along, this group wants to get out of the rat race while still young enough to enjoy decades of life doing whatever they want.

It’s easier said than done

The fatFIRE cohorts are putting a lot of stress on themselves in the short term, hoping they’ll be financially rewarded later. Even if they retire early, they may find themselves bored and lonely.

If you look at the historical records of the stock market, you’ll see that there are times of booms, followed by corrections and crashes. For example, the great financial crisis of 2008 saw stocks plummet and the economy crater. Similarly, real estate and other investments with big rewards come with significant risks.

The future is uncertain with runaway inflation, high-interest rates, a possible recession on the horizon, and geopolitical turmoil.

The downside to getting rich quickly

Having $2.5 million seems like a lot of money, but it’s not if you live until your 90s. You may panic because of a stock market downturn and sell out at a low point for massive losses. Business deals can go sour. One medical emergency can bankrupt you. A contentious divorce, poor decisions, and bad luck can significantly diminish your nest egg.

If things take a turn for the worst, you may need to get back into the job market. It may be challenging, as you’ve been out of the workforce for several years, your skills may have atrophied, and you haven’t kept up with new advancements. Interviewers and hiring managers may be leery that you’ll soon quit when you recoup money and decide to take a pass on your candidacy.

Nevertheless, one of the highest ranking posts on the r/fatFIRE subreddit, from user Snoo68013, could act as the movement’s rallying cry: “Have good food. Enjoy the relationship. Work out and enjoy sex. Sleep well. Call your parents. That’s all there is to life. Greed has no end. Repeat after me. ‘Time is the currency of life. Money is not.'”

Also published on Teamblind’s blog.