Milestone Achieved: Reaching a $3 Million Net Worth and the Psychology of Fat FIRE
Context: A late-30s professional in the Pacific Northwest with a high-earning W-2 lifestyle
- Income: Approximately $400–500k per year from a FAANG-type employer
- Expenses: About $70k per year
- Net worth: Roughly $3 million, all invested in the market
- Market outlook: Acknowledges recent volatility and the likelihood of a future ~20% discount from current levels
Background: The journey toward FIRE has been a multi-step process
- Net worth milestones tracked: $2M, then $2.5M, then $3M
- The “one more day” mentality has been a persistent theme driving progress toward these goals
- This post is intended to be relevant to the Fat FIRE community as the author reaches the $3M mark
Key questions for those pursuing $3–$15 million net worth
- How do you assess the trade-off between working years to move from $3M to $5M, $10M, or $15M?
- For someone with a relatively conventional W-2 salary, it may take several more years or even a decade-plus to reach higher milestones. The author has observed friends and family who work into their 50s for larger goals yet feel unsatisfied, which complicates valuation of pursuing additional wealth.
- The author weighs staying on the current path as providing more financial buffer, but is considering a sabbatical to combat burnout and reassess long-term aspirations. They plan to wait out the U.S. election cycle and the ongoing pandemic before making life changes.
- Continuation on the current trajectory—from $3M to $5–$10M—appears to offer relatively lower value in terms of years lost, compared to exploring new paths or taking time to rest. The author wonders if others have shifted from W-2 work to learning about starting a business and achieving success, or if a fallback to consulting could be a viable option if a new venture doesn’t pan out.
- If a compelling business concept isn’t found, the author anticipates a standard FIRE retirement around $3M. With a tech background in a specialized area, there is consideration of copying a friend into consulting if entrepreneurship doesn’t pan out, though there is recognition of many unknowns in business and a sense of urgency to begin learning and testing ideas.
Additional reflection: Family influence on financial education
- The author notes a contrast with other success stories where financial principles were learned from parents. In this case, the author was the first in their family to learn about FIRE investing and has since shared these principles with their parents with mixed results.
- Questions posed to readers include:
- Do you have parents who are Fat FIRE or Fat FIRE-adjacent?
- What lessons from parental FIRE experiences have helped or hindered your own ambitions?
- Have your parents retired early, and are they still retired?
- Do you plan to retire early yourself?
Closing sentiment and personal milestone
- The author planned to celebrate the milestone with a pie.
Progress updates from the author (retrospective notes)
- Nine months later (June 2021): The net worth reached approximately $4.25M. A sabbatical was taken, with ongoing evaluation of whether to return to work or pursue other paths.
- Fourteen months later (November 2021): Net worth reached $5M.
Takeaway for readers
- The journey to higher net-worth thresholds is highly personal and multidimensional, influenced by career choices, market conditions, burnout, and individual values.
- It’s common to reassess goals and strategies, including taking breaks from work or exploring entrepreneurship, while balancing financial security with personal fulfillment.
- Engaging with a community of like-minded individuals can help clarify priorities, share lessons about family influences, and offer perspectives on whether early retirement remains the right objective as circumstances evolve.
