Early Retirement Extreme: Ultimate Guide to ERE Lifestyle

**Early Retirement Extreme (ERE)** is a philosophy and lifestyle developed by physicist Jacob Lund Fisker, detailed in his 2010 book of the same name. ERE goes far beyond traditional FIRE movement advice. Instead of "save 50% of your income," ERE advocates **radical reduction of expenses through skill development and self-sufficiency** - living on $7,000-12,000/year and retiring in 5 years instead of 15.

• Goal: Financial independence in 5 years (vs 10-15 for regular FIRE)
• Method: Extreme frugality + self-sufficiency skills
• Spending: $7,000-12,000/year ($583-1,000/month)
• Philosophy: Renaissance man approach - master many skills to reduce consumption

Jacob Lund Fisker achieved financial independence in **5 years** (2005-2010) while earning a modest salary as a postdoctoral researcher. His approach: - **Income:** ~$40,000-50,000/year - **Spending:** ~$7,000/year - **Savings rate:** 82-85% - **Time to FI:** 5 years Fisker lived in a small apartment, didn't own a car, cooked all meals, repaired everything himself, and focused on intellectual pursuits over consumption.

• Retired at age 33 with ~$200,000 portfolio
• Living expenses ~$7,000/year ($583/month)
• Used 3.5% withdrawal rate for safety
• Documented journey on earlyretirementextreme.com (2007-2013)

ERE is built on several key philosophical concepts:

1. 1**Renaissance Man Ideal:** Develop broad skills across many domains (repair, cooking, finance, health) to reduce dependence on specialists.
2. 2**Systems Thinking:** View your life as an interconnected system where optimizing one area creates benefits elsewhere.
3. 3**Reduce Coupling:** Decrease dependence on fragile systems (cars, steady employment, restaurants, etc.).
4. 4**Lock-in Avoidance:** Don't commit to expensive recurring costs (mortgages, car payments, subscriptions).
5. 5**Productive Hobbies:** Choose hobbies that produce value (gardening, woodworking) vs pure consumption (golf, skiing).
6. 6**Resilience Over Optimization:** Build robust systems that work under many conditions vs fragile "optimal" solutions.

ERE's financial math is straightforward but extreme:

Living on $7,000-12,000/year requires significant lifestyle choices:

• **Housing:** Small studio or room in shared house ($300-500/mo)
• **Transportation:** Bike, walk, or use public transit (no car)
• **Food:** Cook everything from scratch, shop sales, minimize eating out ($200-300/mo)
• **Entertainment:** Free activities - library, parks, DIY projects, walking
• **Clothing:** Thrift stores, repair instead of replace
• **Healthcare:** High-deductible plan + health savings account
• **Technology:** Used devices, free software, minimal subscriptions

Understanding where ERE fits in the FIRE spectrum:

ERE is not for everyone. Common criticisms and challenges:

• **Unsustainable for most:** Living on $7k/year for decades requires monk-like dedication
• **Ignores family:** ERE is easiest for single people in good health
• **Geographic limitations:** Only works in low-cost areas
• **Risk of under-saving:** Healthcare costs, aging, unexpected expenses can break the model
• **Social isolation:** ERE lifestyle can limit social activities and relationships
• **Assumes good health:** Medical issues can destroy ERE budget quickly

Interestingly, Jacob Fisker himself evolved beyond pure ERE: - He went back to work in finance (managing hedge fund risk) - Still lives frugally but with more flexibility - ERE gave him freedom to choose work he found interesting - His blog ended in 2013 as the community evolved

• Many ERE adherents eventually shift to "Barista FIRE" (part-time work)
• ERE teaches valuable skills even if you don't maintain extreme frugality forever
• The philosophy influences people to live more intentionally
• Few people sustain true ERE (sub-$10k/year) for life