Fast FIRE: Achieving Financial Independence in 5 Years

Doctors know all about job burnout. It’s the reason why so many pursue the FIRE movement to find early financial independence.

But what if you don’t have another 10-plus years in the tank and you need to get out sooner?

There is a more aggressive path for those who want to leave behind the daily grind in a shorter time frame. It’s called Fast FIRE, and as the name implies, it’s a fast high-intensity escape route for those who are ready to go all in on the path to early retirement.

What is FIRE?

FIRE, or Financial Independence, Retire Early, is a financial movement that challenges the traditional idea of working until your 60s or later. FIRE followers aim to retire earlier, typically in their 30s or 40s.

This path requires aggressive saving and investing during your working years to create a nest egg large enough to sustain your expenses indefinitely after you leave the workforce.

The movement is popular because it offers a dignified and purposeful path to leaving the workforce early, acknowledging the burnout many physicians feel from decades of pursuing and working in high-pressure careers.

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By focusing on early financial independence, FIRE adherents gain the flexibility to reduce their work schedule, shift career paths, or retire altogether.

For physicians though, the path to FIRE can look quite different. After long years of schooling and residency, many don’t begin their careers until their 30s — and often carry hefty student loan debt. This can push out the FIRE timeline by another decade, where physician ‘firers’ aim to retire in their early 50s.

While retiring at 53 is markedly lower than the traditional retirement age, many would rather quit their full-time job much sooner to escape career burnout and focus on family life.

What is Fast FIRE?

Fast FIRE takes the FIRE philosophy and compresses it into an even shorter timeline.

Where traditional FIRE may take 10-15 years of diligent saving and investing, Fast FIRE aims to achieve financial independence in as little as five years.

It typically involves:

• Extraordinary savings rates: Think 80% or more of your income saved each year.
• High-yield investments: Prioritizing investments like real estate, where cash flow and appreciation can accelerate wealth-building.
• Active wealth building: Fast FIRE practitioners often adopt a hands-on approach, such as managing rental properties or running a side business to earn extra money they can invest in real estate and other assets.

This strategy isn’t for everyone. To achieve Fast FIRE, you need a high income, an extreme tolerance for lifestyle trade-offs, and a willingness to take calculated risks. And if you’re in a couple, you’ll need a partner who can handle such intensely lean living.

It’s not uncommon for practitioners to downsize their homes, take on additional shifts, and forego luxuries like exotic travel or dining out.

One advocate of Fast FIRE summed it up perfectly: “You don’t have to love what you’re doing—only the return matters.” While this may not appeal to everyone, it resonates with those who view Fast FIRE as a means to an end: financial freedom in record time.

For those considering Fast FIRE, it’s essential to acknowledge its challenges. While traditional FIRE offers some breathing room for mistakes or adjustments, Fast FIRE demands precision, focus, and consistency. The reward, however, is financial freedom in five years—a goal that, for many, justifies the temporary intensity.

How Fast FIRE differs from a traditional FIRE

Although both FIRE and Fast FIRE share the ultimate goal of financial independence, the two approaches vary considerably. Fast FIRE isn’t just a faster version of FIRE; it’s an entirely different mindset.

• Savings rate: Traditional FIRE encourages saving 50-75% of your income, which is already an ambitious target. Fast FIRE cranks this up even further, leaning into high-yield, active strategies.
• Investment strategy: Traditional FIRE often focuses on long-term, relatively passive investments like index funds. Fast FIRE leans into high-yield, active strategies such as real estate. Managing properties, leveraging equity, or investing in small businesses are common tactics.
• Lifestyle trade-offs: Traditional FIRE allows indulgences, but Fast FIRE strips expenses to essentials. Housing is a major area where practitioners make sacrifices — downsizing to a smaller home or moving to a lower-cost area is common.

Fast FIRE may appeal to those who thrive on intensity and see financial independence as worth any sacrifice.

For those willing to embrace the challenge, the promise of early independence remains a powerful motivator.

How to Fast FIRE

If you’re serious about Fast FIRE, it’s not enough to merely set the goal — you need a robust strategy. Think of it as a multi-step sequence where each element builds on the last. Here’s an expanded look at how to tackle this high-intensity route to financial independence:

1. Earn more

Fast FIRE hinges on one undeniable truth: you need to make a lot of money to save a lot of money. For most, this means doubling down on your career or exploring new revenue streams.

• Maximize your salary: Negotiate raises, bonuses, or better contracts. If you’re a physician, this could mean taking locum tenens assignments or working in underserved communities where pay is higher.
• Start a side hustle: From consulting to launching an online business, the additional income streams you create now will make a significant difference over the long haul.
• Use your expertise: Physicians have unique skills — consider teaching, writing, or providing second opinions for extra income.

2. Cut costs aggressively

Cutting costs doesn’t mean deprivation; it means intentional spending. The goal isn’t to eliminate joy but to focus on what truly matters while avoiding the lifestyle creep that often comes with a physician’s salary.

• Live on 10-20% of your income: For most people, this will mean significant changes, such as driving a used car, skipping ski vacations, or downsizing your living space.
• Automate savings: Set up automatic transfers to your investment accounts, so you’re not tempted to spend what you’ve already allocated for savings.
• Consistently ask yourself: “Does this get me closer to my goal?” Dining out, streaming services, and subscriptions might not survive the scrutiny.

3. Invest wisely

Fast FIRE’s tight timeline demands that you go beyond traditional savings strategies. Instead, you’ll need to maximize returns while keeping an eye on risk.

• Real estate: Many Fast FIRE enthusiasts swear by real estate, citing its ability to generate passive income and appreciate over time. This could mean purchasing rental properties, flipping houses, or investing in REITs (Real Estate Investment Trusts) for a more hands-off approach.
• Index funds: Don’t underestimate the power of low-cost index funds. They offer diversification and steady growth, often making them a reliable option for those wary of more active investments.
• Alternative investments: Some practitioners explore options like peer-to-peer (P2P) lending, angel investing, or even cryptocurrency. While riskier, these strategies can offer high returns.

4. Optimize taxes

One of the fastest ways to accelerate your financial growth is by keeping more of what you earn. Understanding the tax code and leveraging tax-advantaged accounts can save you tens of thousands of dollars annually.

• Max out tax-advantaged accounts: Fully fund your 401(k), IRA, HSA, and any other accounts that allow for tax-free or tax-deferred growth.
• Explore geographic arbitrage: Consider moving to a lower-cost area with no state income tax. For example, some doctors relocate to Texas or Florida to cut down on their tax bills.
• Hire a tax professional: If you’re pursuing active investments like real estate, a tax advisor can be especially helpful in navigating deductions, depreciation, credits, and tax-advantaged retirement accounts.

5. Plan for the unexpected

Fast FIRE’s intensity leaves little room for error, so it’s important to prepare for potential setbacks.

• Emergency fund: Have at least 6-12 months of living expenses set aside in a high-yield savings account.
• Health insurance: If you cut back on work, ensure you have a plan for maintaining health coverage, whether through a spouse’s plan or the ACA marketplace.
• Flexibility: Life happens—whether it’s a market downturn, a family emergency, or a career shift. Be prepared to adapt your strategy if needed.

6. Keep the end goal in sight

Fast FIRE isn’t easy, but it’s temporary. By focusing on the rewards that await you, you can push through the sacrifices with greater ease.

• Celebrate milestones: Whether it’s paying off a significant debt or reaching a savings goal, take time to acknowledge your progress.
• Visualize success: Picture what life will look like once you’ve achieved Fast FIRE. Will you travel? Spend more time with family? Knowing your “why” will keep you motivated.
• Be realistic about post-FIRE life: Understand that financial independence doesn’t necessarily mean never working again. Many Fast FIRE practitioners choose to work part-time, start businesses, or pursue passion projects.

Surrounding yourself with like-minded people can help you stay on track and avoid burnout. Not only are you less tempted to spend, but it normalizes and reinforces extreme frugal living.

Pros and cons of Fast FIRE

Like any ambitious financial strategy, Fast FIRE comes with its own set of advantages and challenges. While the allure of early financial independence is compelling, the required rigor is not for everyone.

Here’s a deeper dive into the pros and cons:

Pros of Fast FIRE

Early freedom

Fast FIRE’s most enticing benefit is the freedom to make work optional within a few years. For those in demanding professions like medicine, this can mean escaping burnout, having more time for family, or finally pursuing hobbies and passions.

Imagine waking up at 35 or 40 knowing your financial future is secure, your kids’ college is paid for, and you can greet your kids when they get home from school each day. You choose how you want to devote your time, talent, and intellect.

Wealth acceleration

Fast FIRE’s timeline accelerates wealth-building. The combination of high savings rates, aggressive investing, and careful financial management creates a snowball effect that can drastically improve your net worth in just a few years. This momentum often gives people a financial cushion far earlier than they thought possible.

Flexibility in work choices

Even if full retirement isn’t your goal, Fast FIRE allows you to pivot into lower-stress or more meaningful work. Want to teach part-time, start a non-profit, or consult on your own terms? Fast FIRE creates the financial security to explore these options without the pressure of a traditional paycheck.

Mental clarity

For some, the intense focus required to achieve Fast FIRE provides a sense of purpose. Knowing that every dollar saved and invested is bringing you closer to early independence can be motivating and empowering.

Cons of FIRE

High risk

Fast FIRE often involves higher-risk strategies, like leveraging real estate or investing in less traditional assets. While these can accelerate wealth-building, they also come with significant downsides. A market downturn, unexpected job loss, or real estate slump can derail your plans and force you to reevaluate.

Burnout potential

Ironically, the intensity of pursuing Fast FIRE can create the very burnout you’re trying to avoid. Working extra shifts, managing rental properties, or aggressively cutting expenses can feel overwhelming, especially if you’re also juggling family or other personal responsibilities. Fast FIRE requires a near-singular focus that isn’t sustainable for everyone.

Lifestyle sacrifices

For families, this can mean saying no to vacations, driving older cars, and cutting back on activities for kids. The trade-offs can strain relationships and make the journey feel isolating if those around you don’t share your goals.

Limited margin for error

With such an accelerated timeline, Fast FIRE leaves little room for mistakes. Unexpected medical bills, car repairs, or other life curveballs can set you back significantly. Unlike traditional FIRE, which allows more flexibility, Fast FIRE demands precision and careful contingency planning.

Pressure to keep up

There’s an underlying pressure in the FIRE community to achieve financial independence as quickly as possible. This competitive mindset can lead to comparison stress, especially if you feel like you’re falling behind others who seem to be hitting milestones faster.

Social relationships may suffer

If your best friends from college love going on extravagant, annual ski trips and all belong to the same country club, you may quickly find yourself out of the loop. In a culture that revolves around meeting up for drinks, meals, or social activities that cost money, you’ll need to get creative and actively work to maintain social connections.

Proactively suggesting free activities, such as gathering at your house to watch the game or hosting a potluck and trivia night, may help.

Dependency on prolonged discipline

Even minor deviations — like a small splurge or a missed investment opportunity — can be amplified. Maintaining this level of discipline for years can be exhausting, and for some, it may not be worth the trade-off.

Fast FIRE scenarios

Let’s explore what’s possible with the right mix of discipline, strategy, and income and how this strategy could play out for different individuals with varying circumstances.

Scenario 1: A dual-income physician household

Imagine a physician couple in their early 30s, earning a combined $600,000 annually. They’ve already tackled their student loans and own a modest home. Inspired by Fast FIRE, they decide to live on $80,000 per year while investing the remaining $520,000.

• Year 1: They max out their tax-advantaged accounts (401(k)s, IRAs, HSAs) and invest heavily in index funds. They also purchase two rental properties, each generating $10,000 in annual cash flow.
• Year 3: With $1.2 million in investments and $40,000 in annual rental income, their net worth is snowballing. They decide to expand their real estate portfolio, leveraging equity from their existing properties to purchase a multi-family unit.
• Year 5: By year five, their investments have grown to $2 million, with rental properties bringing in $100,000 annually. At this point, they can comfortably scale back to part-time work or retire entirely if they choose.

Scenario 2: A single doctor with student debt

A solo physician in their late 20s, earning $250,000 annually, wants to pursue Fast FIRE while carrying $150,000 in student loans. They decide to aggressively tackle their loans while maintaining a savings rate of 50%.

• Year 1: They allocate $100,000 to pay off loans and invest the remaining $25,000 in a mix of index funds and a single-family rental property.
• Year 3: With their loans paid off and $200,000 in investments, they shift focus to maximizing their savings and adding another rental property. Their side hustle as a telemedicine consultant adds an extra $30,000 annually.
• Year 5: By sticking to their plan, they’ve amassed $500,000 in investments and $15,000 in annual passive income. While not yet fully FIRE, they’re in a strong financial position to consider semi-retirement or fewer clinical hours.

Scenario 3: A family with young children

For a family with young kids, Fast FIRE often requires creative adjustments. Let’s consider a household where one spouse is a physician earning $400,000, and the other works part-time, earning $50,000.

• Year 1: They commit to living on $100,000 while saving and investing the rest. To stretch their budget, they downsize to a smaller home in a lower-cost area and eliminate unnecessary expenses.
• Year 2: They purchase a vacation rental property, which they rent out on Airbnb. It generates $25,000 annually after expenses, allowing them to offset childcare costs.
• Year 5: With $1.5 million in investments and $75,000 in passive income from real estate, the physician scales back to part-time work, allowing the family to enjoy more time together.

These scenarios highlight the flexibility of Fast FIRE. While the journey may look different for everyone, the principles of disciplined saving, intentional spending, and high-yield investing remain consistent.

Can you change FIRE types?

Absolutely. Fast FIRE, like any FIRE strategy, isn’t a one-size-fits-all solution. Life has a way of throwing curveballs — unexpected expenses, career changes, or even a shift in priorities—and your plan needs to adapt.

For some, a Fast FIRE might become unsustainable after a few years. That’s okay. Slowing down to a more traditional FIRE pace or adopting a hybrid approach, like a Coast or Barista FIRE, is always an option.

These alternatives still move you toward early retirement, but allow more flexibility to enjoy life or manage other commitments in the meantime.

The beauty of FIRE lies in its adaptability. Whether it’s adjusting your savings rate, recalibrating your timeline, or exploring different investment strategies, you’re not locked into one set path. What matters most is staying committed to the ultimate goal of early financial freedom.

Is Fast FIRE a smart idea?

For some, Fast FIRE offers the perfect balance of discipline and freedom. For others, it’s too restrictive. It all depends on your tolerance for sacrifice and your financial goals.

Physician on Fire: Nirav weighs in on Fast FIRE

Dr. Nirav Shah, one of the four physicians behind Physician on Fire, offered me his take:

Fast FIRE can be tempting in today’s hustle culture, but it’s not always the best fit for professionals with lengthy educational paths, like doctors, PhDs, or lawyers. The intensity required to achieve it can sometimes lead to the very burnout you’re trying to escape.

That said, there’s no one-size-fits-all path to financial independence, and for some medical professionals, the Fast FIRE approach aligns perfectly with their goals. When done right, it can open up a whole career’s worth of opportunities to focus on what truly matters — whether that’s surfing in Bali or volunteering in Guatemala.

Final thoughts

Fast FIRE isn’t for everyone. But if you’re willing to embrace the discipline and trade-offs, it could be your golden ticket to financial independence far sooner than you’d ever dreamed possible.

So, what would you do if work was optional in just five years? That’s the real question Fast FIRE forces us to ask — and answer.