September 2021 Dividend Income Report

It’s early November and I am just getting to the September income report now. I have continued with being late to these.

September was closer to one of the worse months with a total of $37.76 in dividends from 16 different companies. Only June was worse than September. There is a good reason for this since most of the companies that paid out dividends in June paid in September as well. 

Dividend increases by 6 companies.

Wells Fargo raised its dividend by 100% from $0.10 to $0.20 per share.

Discover raised its dividend by 13.6% from $0.44 to $0.50 per share.

Target dividend increased by 32.3% making it $0.90 per share; it was $0.68 per share last time around.

A bit over a 2% increase in Walgreens dividend, $0.4675 to $0.4775.

Royal Dutch Shell increased its dividend 37% from $0.35 to $0.48.

Simon property by 7.1% from $1.40 to $1.50 per share.

Wells Fargo (WFC) – $1.00

Invesco (IVZ) – $6.29

Valero (VLO) – $0.98

Discover (DFS) – $0.50

Kinross (KGC) – $0.30

Bath & Body Works (BBWI) – $2.55

Archer-Daniels-Midland (ADM) – $3.33

Exxon Mobil (XOM) – $0.87

Target (TGT) – $3.60

Walgreens (WBA) – $6.21

3M (MMM) – $7.40

Royal Dutch Shell (RDS.A) – $0.48

Kraft Heinz (KHC) – $1.20

Gilead (GILD) – $1.42

Simon Property (SPG) – $1.50

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) – $0.13

August 2021 Dividend Income Report

Another month has passed and it’s time again to update the monthly dividend income reports. I am making a habit of doing the dividend reports pretty late. I should probably have that as my new year’s resolution. 

August was a worse month than July. A total of $54.83 in dividends from 11 different companies.

No Dividend increases or decreases this month. Just the usual fluctuations in the SPHD dividend

General Mills (GIS) – $1.53

Verizon (VZ) – $2.51

AT&T (T) – $23.92

CVS Health (CVS) – $7.00

Texas Instruments (TXN) – $1.02

Apple (AAPL) – $0.88

AbbVie (ABBV) – $16.90

Citibank (C) – $0.51

Sirius XM (SIRI) – $0.18

Helmerich & Payne (HP) – $0.25

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) – $0.13

July 2021 Dividend Income Report

Another month has passed and it’s time again to update the monthly dividend income reports. July was a better month than June with almost double the amount in Dividends. A total of $64.97 in dividends from 12 different companies.

Dividend increases from 3 companies.

Cardinal health raised its dividend by 1% from $0.486 to $0.491 per share. 

Medtronic by 5.8% from $0.58 to $0.63 per share.

Simon property by 7.7% from $1.30 to $1.40 per share. Added bonus with Simon Property is it looks like there will be another dividend increase to $1.50 for the next payout which is scheduled on 09/30/2021.

General electric is not part of the portfolio anymore after the 1 for 8 reverse split that went into effect on August 2nd. I think my brokerage (Robinhood) automatically sold it since I only had 5 shares and it wasn’t enough to form one share after the reverse split. 

Iron Mountain (IRM) – $9.90

Seagate Technology (STX) – $5.36

Altria (MO) – $23.22

Occidental Petroleum (OXY) – $1.05

Franklin Resources (BEN) – $1.96

Cardinal Health (CAH) – $0.49

Medtronic (MDT) – $1.26

Simon Property (SPG) – $1.40

General Electric (GE) – $0.05

Cisco Systems (CSCO) – $0.37

Annaly Capital Management (NLY)  – $19.80

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) – $0.11

June 2021 Dividend Income Report

It’s almost August and I didn’t do my June dividend income report. Pretty late to the party. June looks like a slower month with $34.80 in dividends from 16 different companies, the lowest haul after I started tracking dividends here. 

Most of these shares were bought more than a year ago. Some of them are closer to 5 years. That was when I was too scared to commit a lot of money to buy shares in one company. So I would usually do onesie-twosie shares and that is pretty clear here with dividends less than a buck from half of the companies in the list below. 

Wells Fargo (WFC) – $0.50

Helmerich & Payne (HP) – $0.25

Invesco (IVZ) – $6.29

Discover Financial Services (DFS) – $0.44

Valero (VLO) – $0.98

Archer-Daniels-Midland (ADM) – $3.33

Exxon Mobil (XOM) – $0.87

Target (TGT) – $2.72

Walgreens (WBA) – $6.08

3M (MMM) – $7.40

Kinross Gold (KGC) – $0.30

L Brands (LB) – $2.55

Royal Dutch Shell (RDS.A) – $0.35

Kraft Heinz (KHC) – $1.20

Gilead Sciences (GILD) – $1.42

2 ETF for Weekly Income

All of us are used to dividend stocks being paid out on a quarterly basis. You need to get creative to have a portfolio with income every month. This led me to look into dividend stocks that pay dividends every month.

I found a few companies that paid dividends every month. Here is my post on 4 companies that pay dividends every month. I didn’t list all of them. Just the ones I liked the most.

The question here is what if monthly dividends are not enough. What are the choices available if you are looking for something that pays a dividend every month?

SoFi has done exactly that by creating two ETFs that pay a dividend every week.

What is SoFi?

SoFi is a relatively new fintech company that specializes in all things money. Their number one priority is to help you get your money right. So you can secure your financial future and live life on your terms. It doesn’t matter what kind of money trouble you have or what kind of money tool you are looking for. They have a solution for you.

Are you looking to consolidate credit card debt? They offer personal loans.

Are you in the market for a new home? They offer mortgages.

Are you looking to get your finances in order? They have SoFi Relay for budgeting.

They have a product for all of your money needs. If they don’t have a tool directly, then they have a partnership that will get the job done.

I first heard about SoFi a few years ago when a friend mentioned about refinancing and consolidating all of their student loan debt. Student loan refinancing was their first product and from there they introduced more products as time went by. They launched Mortgages in 2014 and SoFi invest in 2019.

While sofi has made products like an investing app, they have also dabbled in making some ETFs. They offer 6 ETFs as of now but I am going to look into 2 of them that have dividends paid out every week.

1. SoFi Weekly Income ETF (TGIF)

I can’t think of a better ticker name than TGIF that would suit this ETFs purpose. I couldn’t find any information whether it is named for Thank God it’s Friday but I think it’s safe to assume that’s the case. As the name suggests Dividends are paid out every week on Friday.

This fund invests in investment grade and high yield fixed income securities. That’s a difficult way of saying it invests in corporate debt and junk bonds. It is an actively managed fund with exposure to over 100 different bonds for diversification. Biggest holding as of March 31st 2021 is a Ford corporate debt that expires in April 2023.

Dividend Details

  • Dividend: $0.05
  • Annual Dividend: $2.60
  • Dividend Yield: 2.46%
  • Paid out: Weekly

This is a relatively new offering so there isn’t a long history for dividends. The first date of dividend payment is 10/07/2020.


Every Mutual fund and ETF charges a fee to its shareholders to cover operating expenses. TGIF is no different. Since it is an actively managed fund, the fees are a bit higher than usual. TGIF’s expense ratio is 0.59%. That’s $5.90 for every $1000 invested in the fund over a span of the year. 

2. SoFi Weekly Dividend ETF (WKLY)

This is the second one on the list. I like how they have named these ETFs in the most straightforward way possible. This one is even newer than the TGIF ETF. First day of trading was 5/11/2021.

The goal with this is the same in terms of paying out dividends every week but the investments are different. This fund is made up of the most consistent dividend paying companies throughout the world. I couldn’t find a list of the companies they have in their holdings. However they have some stringent criteria for the companies that’s in the fund. Market capitalization of $1 Billion, dividend payout ratio not exceeding 100%, Company has paid dividend the last year and is projected to pay dividend the coming 12 months.

Dividend Details

  • Dividend: $0.02
  • Annual Dividend Payout: $1.04
  • Dividend Yield: 2.07%
  • Paid out: Weekly


Expense ratio for WKLY is 0.49%. It is a bit cheaper than TGIF but this is still expensive. The 0.49% expense ratio amounts to $4.90 for every $1000 invested in the fund for a year.

Effective Dividend Yield

The dividend yield you will find by a quick search of TGIF and WKLY shouldn’t be considered as the dividend yield you can expect. You will not see any difference in the payout into your brokerage account but the expense ratio has to be accounted for somewhere since that is a cost to you. 

The way I would look at the effective dividend yield for funds like these is the Dividend yield – Expense ratio.

Should you buy it?

On a high level, there is a quick and easy method you can use to decide this. If you don’t have a lot of money to be well diversified and want to have weekly income, then TGIF and WKLY make a lot of sense for you.

This is a scenario where you are not looking at the dividend yield or the stock movement. A set it and forget mentality that will bring in income.

Now to the nitty gritty- this is the I care less about getting dividends every week. 

WKLY is a diversified fund invested in dividend stocks. The 2% dividend yield is more than the S&P 500 dividend yield which is currently at 1.37%. so it’s definitely not slacking in that area. However, since this fund is invested in dividend stocks. You could look at the fund holdings and pick out individual stocks you want to own. Some of them will have a dividend yield higher than 2%. You can have the ones you want and ignore the ones you think are not good. You will be sacrificing some diversification in the process.

TGIF is a fund invested in corporate debt and high yield junk bonds. The 2.5% dividend yield is good and similar to WKLY is higher than the S&P 500 dividend yield. Again if you are not desperately looking for weekly income, you can pass on this and go for a dividend stock that pays better. Only reason I can think of adding TGIF is for the added diversification. I have no exposure to bonds and TGIF can help with that.

May 2021 Dividend Income Report

Slowing Growing monthly income

It’s the beginning of June so it’s time to take a look at May Dividends. This is my second go around with a monthly dividend income report. Since I just started tracking this my only comparison is the April 2021 dividend income. May is about $20 lower than last month. 

A Total of $54.56 in dividends in May from 9 different companies and 1 ETF.

General Mills (GIS)  – $1.53

AT&T (T) – $23.92

Verizon (VZ) – $2.51

CVS Health (CVS) – $7.00

Apple (AAPL) – $0.88

AbbVie (ABBV) – $16.90

Texas Instruments (TXN) – $1.02

Sirius XM (SIRI) – $0.18

Citigroup (C) – $0.51

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) – $0.11

Are Puts riskier than Calls?

Taking risks with puts and calls

The short answer is NO. Puts are not riskier than calls. This is also true for the opposite. Calls are not riskier than puts either. The long answer is, it’s way more complicated than picking a yes or no. It depends on a few factors and that is usually the case with options a lot of times.

Options are almost always fairly priced. The price you see at the moment is the fair value for it. If you see an option not fairly priced, there is no way you can take advantage of it as a retail trader. Algorithmic trading by big institutions will make that disappear before you can even decide how to take advantage of it.

Why do people ask this?

If you are looking at the options prices in an index, you will notice that the puts cost more than the calls. For example, I am looking at a SPY option with a strike that is $10 out of the money and compare it against a call that is $10 out of the money. SPY is around $415 so I am going to look at the $405 put and the $425 call.

$405 put cost $792 while the $425 call cost $480. That is a difference of $312. I am looking at SPY options that expire in the July cycle which is 54 days away.

Both of them are about $10 away from the stock price. The chances of stock moving up or down $10 should be somewhat the same. If the probability of the stock reaching $405 or $425 is the same, then the risk is the same….. but if the risk is the same then why does the put cost $312 more than the call?

Why are puts more expensive than calls?

The basic supply and demand model is in action when it comes to options pricing. Most portfolios are usually buy and hold portfolios. So the “cheapest” way to protect a portfolio from an unforeseeable market crash is to buy a put. So looking at the SPY example from above, you can say more people are buying the $405 puts compared to the $425 calls so they can get better sleep at night, then that naturally pushes up the prices of puts making them more expensive than calls.

The old adage of the market takes the stairs up and the elevator down plays a role in this. Nobody really knows when the market is going to crash but when it does, it usually happens very quickly. 

Whenever I look at my brokerage account, I am hoping for a sea of green with all the stocks I own going up. I don’t look at how much it has gone by. As long as it’s moving up, I am making money and my portfolio is doing better. It’s usually a tiny percentage and it’s grinding up slowly. But when there is a red day, I am looking at how much it’s down by and the panic sets in after depending on how bad of a day it is.

I have a small portfolio and I panic even though I am fairly confident that the stocks I own will eventually come back up. Now let’s imagine a professional money manager who has to answer to investors. Does paying up for puts seem all that bad if your job is potentially on the line?

Are puts always more expensive than calls?

I picked SPY and mentioned Index earlier on purpose. I looked at options 60 days out and almost 1000 days out and I couldn’t find an option cycle when calls are more expensive. I can’t think of a time I remember seeing calls being more expensive in the Index. So while Puts are usually more expensive in every underlying, that is not always the case. I can think of 2 scenarios where the calls are more expensive than puts.

1. Melt up in a stock

This is usually for whatever stock or industry is the talk of the town at the moment. This happened with Tesla in 2019. GameStop in Feb 2021. Almost all SPACs at the end of 2020 and beginning of 2021. Tilray in 2018 pretty much after they went public.

A melt up is when there is a sudden big up move in a stock and it keeps doing that for a few days where that’s the only stock people talk about. That’s when everyone is running to buy far out of the money calls like the $800 strikes in GME because any strike remotely close to the stock price is way too expensive for anyone to afford. The allure of great riches you see on Reddit and full-blown FOMO gives you the impression that you can still mint money with those far out of the money calls.

These are risky as hell because the big move has already happened and you are looking at very expensive calls when people are trying to lock in their profits and get out of the stock. You are going to be left holding the bag in that scenario.

I don’t have any great examples like the GME one right now. I don’t have a stock that is exactly melting up either. However, I have Roblox that has gone up by almost 20% in 3 days and the calls are more expensive.

Roblox (RBLX) closed at $82.50 on Friday and I am looking at the $75 strike put that is $7.5 out of the money to the downside and the $90 call that is $7.5 out of the money to the upside. The $90 call cost $585 and the $75 put cost $510. The call cost $75 more than the put even though it’s equally far away from the stock.

A 20% up move in the stock in the last 3 days has made everyone more hopeful that it will continue going up so why not get on this before it’s too late. This is driving more demands for the $90 calls compared to the $75 puts. I consider this very speculative and basically gambling. This is a scenario where there is more risk to the upside and you could argue that calls are riskier than puts in this case.

2. Options far into the future in individual stocks

This would be like a regular investment in my opinion. I am going to look at Facebook as an example.

Facebook is trading around $316 right now and I am looking at options that expire in June 2023. The $310 put which is $6 out of the money is priced at $5895 while the $325 call that is $9  out of the money is trading for $6320. The call is much further out of the money compared to the put I have chosen but it’s priced higher.

Since the stock market usually goes up over time it only makes sense that calls cost more because they have a higher likelihood of being in the money and that’s where you are going to see demand.

At the same If you are to look at options in the index like SPY, QQQ or IWM, those will still have the puts priced higher because they are going to be used as insurance against the calls like Facebook above.


There is a lot more information when it comes to how options are priced. But the question of whether puts are riskier than calls isn’t something that you should really consider as a blanket statement. There is no one answer that completely satisfies this question. 

This really plays into the statement of high-risk high reward low-risk low reward. You can generally look at it as if puts are more expensive, that’s where the risk is perceived to be by the market at that moment and that typically means that’s the direction you can find a higher reward.

Even then you will only enjoy this reward if the stock moves in the direction you want whether it’s a put or a call. When I see a “pricey” put, I’m not thinking it’s riskier. I’m thinking there’s more demand for these puts because people are trying to hedge their long portfolios. And that’s just the cost of doing business.

April 2021 Dividend Income Report

Squirrel away money for the future

This is my first dividend income report. I have written about stocks for monthly income and what other stocks to buy to boost passive income. It’s about time I show what this looks like. This is my first pass at it and I am already late.

Overall I received $76.18 in dividend income from 12 different companies for an average of $6.35 from each company. Not too shabby.

Iron Mountain (IRM) – $9.90

Seagate Technology ( STX) – $16.75

Occidental Petroleum (OXY) – $1.05

Franklin Resources (BEN) –  $1.96

Cardinal Health (CAH) – $0.49

Medtronic (MDT) – $1.16

Simon Property Group (SPG) – $1.30

General Electric (GE) – $0.05

Cisco Systems (CSCO) – $0.37

Altria Group (MO) – $23.22

Annaly Capital (NLY) – $19.80

PowerShares S&P 500 HighDividend Low Volatility ETF (SPHD) – $0.13

Not sure what dividend stock to buy in May?

Hand writing out dividends

Having a dividend portfolio that pays you every month or every quarter is great. Who doesn’t like to get paid for doing nothing right? But before you can have a portfolio that pays you, there is some groundwork that needs to be done in selecting the companies so you can get that passive income.

So at the beginning of every month I look through a list of companies that pay dividends to check whether there is any new stock that I can buy at a reasonable price. The reasonable price part is purely my opinion that I have come up with over time.


These are my usual concerns I have before I put any money into a dividend stock.

1. Dividend yield

I look for a dividend yield of 2% or above. Anything below makes me feel like I am not getting the most out of my money.

2. Dividend growth

A high dividend yield is great to start with but if the company doesn’t continue to increase it then inflation is going to eat into it. A baseline line of 5% dividend growth looks good to me and that’s my starting point.

3. Dividend streak

This shows some stability. Have they been giving dividends for more than 10 years? That gives me some faith that they will continue to give dividends. The company could go through bad business cycles and still have a big enough safety net that could continue giving dividends.

4. Payout ratio

Wallet with money sticking out to show dividend payout

Payout ratio of less than 60%. A low payout ratio means that they have earnings to cover the dividend and to invest for the future.

5. P/E Ratio

I use the P/E ratio to determine whether I can buy the stock today at a reasonable price. In the past I used a P/E Ratio of 20 to decide what was expensive. I have come to realize that some stocks usually trade at p/e multiple higher than 20 all the time. So I don’t have a specific number for that anymore. 


Fighter Jet to show the main business segment of Lockheed Martin

The stock that I am looking to add to my portfolio this month is Lockheed Martin (LMT). It’s not a household name. Lockheed Martin is a global security and aerospace company. It’s one of the largest defense contractors with over 70% of their revenue coming from military sales. We are talking about fighter jets, missiles and space equipment for NASA.

From a business standpoint, there are one of the biggest players in that industry with a few competitors. They are the primary manufacturer for most of the contracts they have won with the US government. This is an industry with a high barrier to entry which keeps them pretty insulated from being disrupted. This makes it very difficult for the company to just disappear or be overtaken out of nowhere. They also won a few contracts that’s going to last for the next 10 years.

As with most good things in life, there are some downsides to their business. These risks will play a factor in how successful they will be in the future. 74% of their revenue came from the US government in 2020. These agencies and the government in essence have control on Lockheed’s fortunes as they can delay delivery acceptance or cancel a contract. The F-35 program accounts for 28% of the revenue. Any negative outcome for that project in specific will have adverse effects on the overall company performance.

Now that we have a basic understanding of what Lockheed Martin does and how it makes money. How does it hold up against the checklist I mentioned earlier?

1. Lockheed Martin Dividend Yield

Dividend yield is at 2.53% as of Friday close. So this passes the 2% dividend yield test. Here is a 10 year chart of dividend yield for Lockheed Martin from Macrotrends. The dividend yield was almost 5% in 2013. It’s been below 3% since 2014 and looks to have settled between 2% and 3%.

2. Lockheed Martin Dividend growth

Lockheed Martin has grown its dividend by 9.8% compounded annually for the last 5 years and grown it by 14% compounded annually for the last 10 years. This is like getting a 10% raise everywhere. The dividend payout right now is $10.40 and in 2016 was $6.77 and it was $3.25 in 2011. This is a 53.7% overall increase over the last 5 years and a 325% increase over the last 10 years. For dividend investors who plan on holding for the long haul, the dividend growth rate should be of more importance than the dividend yield itself. Dividend yield is what matters when you invest initially but without a good dividend growth rate, you won’t be able to continue that momentum to grow your passive income.

Money growth over time to show dividend growth

3. Lockheed Martin Dividend Streak

This is for stability and Lockheed Martin is a dividend contender and has grown their dividends for the past 18 years. They went through the great recessions and still increased their dividends during that time. This past dividend streak doesn’t mean they will continue to do that in the future if they run into some major business issues.

4. Lockheed Martin Payout Ratio

Payout ratio is the portion of the earnings begin given away as dividends. Lockheed Martin has a dividend payout ratio of a bit above 40%. This leaves a lot of room for the dividend to keep increasing and possibly maintain that 10% dividend growth rate mentioned earlier. With 60^% of the earnings retained by them, they still have quite a bit of money to keep investing into business for new projects.

5. Lockheed Martin P/E Ratio

 I don’t have one P/E Ratio to narrow down the companies I look at. I look at the current P/E ratio against its historical P/E ratio. This is where I determine whether I can buy the shares at a reasonable price. There is not any magic to it. If the current P/E is close to the average or below compared to the past 5 years, then I would consider it as a good entry point. Here is a 5 year trend of Lockheed P/E Ratio. P/E ratio is at 15.75 right now and that has not changed much in the last 2 years. I look at this and think I am not getting a great deal but I am not overpaying either. 

P/E Ratio over time


Lockheed Martin is a good addition to any portfolio based on my checklist. As long as the US government continues to pour money into military equipment, Lockheed stands to benefit from it. Lockheed stock prices have gone up recently but it is not very far away from its 52 week low so I think this is a good time to seriously look into buying some shares.

6 Types of FIRE movement

Retirement Sign

FIRE movement is a trend among young people that’s growing in popularity thanks to its goal of retiring early. FIRE stands for Financial Independence Retire Early. The concept is based on following a very disciplined and aggressive saving and investing strategy. This continuous cycle of saving and investing over time will build a big enough nest egg that will give you the freedom to leave the workforce once and for all.

FIRE movement is not a new concept. It was first introduced in the book Your Money or Your Life written by Vicki Robin and Joe Dominguez in 1992. The main concept of their book is that most of us go through life exchanging time for money without thinking much about it.

While the FIRE concepts were created in the early 90s it took another 15 or so years for it to gain popularity. The great recession that saw 10 million+ people lose their jobs played a big part in it. A big portion of the people affected were the millennials who were barely out of school and very early in their careers. Along came quite a few blogs that focused on FIRE and millennials scarred by student loans and the thought of working till 65 while constantly fearing for their jobs made an ideal place for the FIRE movement to take off.

People who follow the FIRE movement get a bad name for being very cheap. What’s the point in saving a big chunk of your money and basically not enjoying life today in hopes of saving enough to retire early? What kind of “retired” life can you have after living with the bare minimum for so many years? There is no one size fits all for the FIRE movement. If you are planning to go down the FIRE path, you have to know that there are different types of FIRE.

There are definitely similarities between the different types of FIRE. You have to save a portion of your salary and invest it and grow to a point where the amount you earn from it can replace your salary. A simplified version of looking at it would be how do you plan on living once you retire and how quickly you want to get there, that would determine what type of FIRE is ideal for you.

How much do you need to save?

Anything I have watched, read or heard related to FIRE talk about the 4% rule and this seems to be universally accepted as a rule for everyone who considers FIRE-ing.

The amount you need to have saved and invested should be 25x your annual spending. The annual spending you have planned for your early retirement. Let’s say you plan on living in a budget of $50K during retirement. Then you will have to save 25x $50K which would come up to $1.25 million.

The idea is that the money you have invested will grow every year. If you are to withdraw 4% of your investments every year, the invested balance will not come down and should let you live your early retirement life forever.

Regular FIRE

This is the plain vanilla cookie cutter version of FIRE. This is the version where you maintain your current or working life lifestyle. If you live on $60K a year then you would need to save $1.5 million to reach the 4% safe withdrawal rate. I have seen on other sites that regular FIRE should have yearly expenses between $40K – $100K a year. I think the yearly expense is less important for regular FIRE. What’s important to you is probably maintaining your current standard of living and having freedom.


Lean fire is the bare bones version. This is where we start focusing on yearly expenses. For people who know nothing about the FIRE movement, this is the rice and beans or ramen noodles for every meal type of early retirement. That sounds a bit harsh but there is some truth to it. The type of FIRE is suited for people who plan to live a frugal and minimalist lifestyle. Commonly, Lean FIRE is for folks who can live on a $40,000 budget every year. 

Regardless of the type of FIRE you are aiming for you can expect pros and cons with it.

Pros of Lean FIRE

  1. Quickest way to FIRE
  2. Freedom earlier

Cons of Lean FIRE

  1. Living in a small place
  2. Limited to living in a low cost area
  3. Constantly make spending sacrifices


Fat FIRE is for the folks who want to live on a $100k salary after they become financially independent. you will need a bigger nest egg to achieve this. Using the 4% rule, you will need to have $2.5 million saved. As you can expect this will take longer than Lean FIRE and regular FIRE to reach.

Pros of Fat FIRE

  1. Few worries about spending
  2. Travel when you want to
  3. Feeling of safety with the money invested

Cons of Fat FIRE

  1. Takes longer to achieve

Barista FIRE

The types of FIRE listed so far is more of a “retired” version. Typically, you reach your FIRE savings amount and are done working. This is a great in between fully FIRE and working a job you really hate. In this one you have a part time job that covers some of the expenses and the remaining is covered by your investments. The common part time job is getting a barista gig at a coffee shop.

How would this work? Let’s say you are aiming for lean FIRE and need 40K every year. You have saved up $750K so far but really need $1 million saved up to follow the 4% rule properly. Using the 4% rule you can withdraw $30K. But you will still need another $10K to cover your frugal lifestyle. This 10K could come from the barista job or whatever part time job you get.

Pros of Barista FIRE

  1. Quicker way to reach FIRE
  2. Leaving a job you hate quicker

Cons of Barista FIRE

  1. Finding a part time job that pays well
  2. Don’t have full control of your schedule usually

Coast FIRE

Coast fire all about future planning. You figured out your financial independence amount at a very early stage. The goal is to have a high savings rate early in your career and have it reach a point where you don’t have to save anymore. The invested money will grow into the total amount you need to FIRE eventually. There is no specific amount for this. It could be considered as a sub category lean or fat. Coast FIRE is the method you use to reach Fire Status and LEAN, regular or fat is more related to your lifestyle

Pros of Coast FIRE

  1. Time does a lot of the work

Cons of Coast FIRE

  1. High savings rate and amount at young age when your salary is probably pretty low


This is my favorite. MoFIRE stands for morbidly obese FIRE. In terms of spending limits I’m not really sure if there is a specific number for yearly expenses. If fatfire is at $100k this should be considerably more. It could be any number as long as it’s very high. Let’s say it’s $250K. How about doubling or tripling your current lifestyle? This should be everyone’s life goal.

Pros of MoFIRE

  1. No spending sacrifice at all
  2. Same as Fat FIRE and much better

Cons of MoFIRE

  1. Takes a long time to reach. Perhaps impossible.
  2. I can’t think of anything else