If you think early retirement is only for tech millionaires or financial gurus, think again.
A recent thread on the r/leanfire subreddit asked people who retired with $1.4 million or less to share where they live and how much they spend.
The answers came pouring in from all over the U.S. and abroad.
From cold-weather states to Southeast Asian cities, these individuals are proving that retiring early on a modest budget is not just possible, it’s more common than most people think.
Low Cost of Living Makes FIRE Possible
The key to retiring early on a modest nest egg, many said, is keeping expenses low, often by choosing where to live wisely.
Respondents emphasized housing costs, healthcare access, and quality of life. Here are 10 states and countries where people are successfully living on $1.4 million or less.
Michigan
Several Redditors called Michigan home, especially in the Detroit suburbs. One couple said they spend about $2,500 a month, including healthcare. “We own our home in the Detroit suburbs,” they wrote.
“My living costs are $2,500/mo including healthcare and a small buffer for unforeseen expenses. $1.4m would nearly double my needs.”
They also praised the local amenities and community: “There is a lot of culture, if you’re into that. We get into Detroit Institute of Arts for ‘free’ as it’s part of our property taxes.”
Wisconsin
A single individual retired at 45 with just $350,000 in savings and a paid-off $200,000 house. Their annual expenses? Only $14,000.
“I have always lived cheap. I don’t know any other way,” they said.
Their food budget is remarkably low, about $8 per day. Healthcare is handled through BadgerCare, and utilities remain modest. “I drink nothing but bottled water at around 12 cents per bottle,” they added.
California
Despite California’s reputation for high costs, one Bay Area resident lives comfortably on under $40,000 a year.
“Key is to have a fully paid off house, that was purchased in the 2000s or earlier,” they explained.
Low property taxes and no rent allow them to thrive where most can’t afford to.
North Carolina
In the Raleigh-Durham area, someone who bought a home for under $300,000 in 2018 said they’ve been able to stay comfortably within LeanFIRE parameters.
“Today, you are paying minimum $500k for a possibly questionable house,” they said. They noted that renters still have options due to new apartment developments.
Texas
In a large Texas city, one person said they spend between $3,100 and $3,300 a month, even with a mortgage. Thanks to subsidies, they expect healthcare costs to drop next year.
“I expect to spend under $3K a month next year,” they wrote.
New York
Several LeanFIRE individuals are based in rural or upstate New York.
One reported living within half an hour of a mid-sized city, spending between $75,000 and $80,000 per year while continuing to work part-time until Medicare eligibility.
Indiana
In one of Indiana’s lowest-cost towns, a Redditor said their yearly expenses totaled just $2,600, not including food or car costs.
Their plan? Retire locally and travel by van during the winters.
Ohio
A family living in suburban Dayton reported all-in expenses around $4,500 a month, with expectations of reducing that to $3,500 after paying off their mortgage.
They noted the area offers a balance of affordability and quality of life.
Maryland
In Western Maryland, a couple manages to live on $47,000 per year across two properties, a house and a cabin.
They rely on wood heating and ACA health insurance.
“Heat mainly with wood,” they noted. Their monthly premium is $172 for a Gold Plan.
Washington
In Washington’s Olympic Peninsula, one person lives on about $40,000 a year in a mortgage-free home.
Another person also chimed in: “No mortgage, no other debt. $1.35M in 401K.”
As one person put it:
“These days, it’s not so much where you’re living, but when you bought your house.”
This sentiment sums up the experience of many LeanFIRE participants in U.S. cities: timing the housing market often matters more than the ZIP code itself.
Early home purchases, particularly before the post-2020 inflation in real estate, have made a huge difference in affordability and long-term financial independence.
International FIRE Spots
1. Malaysia
Penang, Malaysia, was a favorite among international FIRE followers. “You get it all: great food, healthcare, city life close to nature, low cost, amazing amenities,” said one expat.
The downsides? “Weather is just outside of comfortable… and not stroller-friendly.”
2. Thailand
Thailand is another top choice. Several said they live on less than $2,000 a month, enjoying cheap food and good public transportation.
“You can get almost anywhere by bus, healthcare is reasonably priced, and food is dirt cheap,” one wrote.
Scams and safety were noted as occasional concerns.
3. Portugal
One person prepped for FIRE by buying a home in southern Portugal.
“I already have a house in a LCOL country (southern Portugal) for just this case,” they said.
Portugal remains popular for its mild climate and healthcare system.
4. Mexico
In Puerto Vallarta, a retiree lives on about $3,000 a month.
“I live very comfortably,” they said. Others mentioned Mexico’s affordability, strong expat communities, and accessible healthcare.
5. India
Bangalore was another unexpected LeanFIRE location. One Redditor lives in a paid-off apartment with annual expenses under $30,000.
“This is more like normal to FatFIRE in India,” they noted.
What Is FIRE and LeanFIRE?
FIRE stands for Financial Independence, Retire Early. It’s a lifestyle movement focused on aggressive saving and investing, often more than 50% of one’s income to leave the traditional workforce well before the standard retirement age.
LeanFIRE is a version of this philosophy where retirees maintain a lower cost of living, typically spending under $50,000 a year.
That often means living frugally, choosing more affordable locations, and foregoing some luxuries in exchange for freedom and time.
The stories in this thread show how early retirement can look different depending on where and how you live.
For many, it’s not about having millions, it’s about keeping costs low and taking control of their time.
They didn’t win the lottery, they just made smart choices, lived modestly, and timed their housing right. With a bit of planning, this kind of freedom might be more within reach than people think.