🔥Coast Fi and Barista FI 🔥
I’m excited for this one!! 🤩 it’s gonna get more fun from here on out.
If you saw my last post we talked about how much you would need to retire on time.
Before we start, I’ve included all online calculators used so far in my linktree in my bio. Feel free to use those anytime you want so you don’t have to refer back to this post.
Recap⏮: We used an example of retiring on a $40,000/yr salary and a 4% safe withdrawal rate. You would need $1,000,000 invested at 67 to achieve this example.
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Coast FI 💰
This is defined a couple different ways at least from my research so far. The idea is to invest heavily at the beginning of your career so that after a certain point, you could “coast” your way to retirement without having to invest anymore.
You would still have to continue working but once you’ve reached coast FI, you can take on more expenses or take a lower paying job you enjoy because you aren’t needing money to invest anymore.
This works by letting the power of compound interest do its magic.
Your coast FI number will depend on how much you contribute and how many years you are willing to invest.
Without going into detail, my coast FI number is $150,000 and I could reach it by age 32 at a 7% return and 3% inflation.
🌊Coast calculator: https://bit.ly/39z4mbs
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Barista FI 💰💰
Similar to Coast FI, you would need to invest heavily enough at the beginning of your career that you could eventually step down from a full time job and maybe work part-time. You live partially off your investments, and the rest of it comes from your part time job.
There a couple perks to this:
1️⃣ you could work a job you are passionate about
2️⃣ Some part time jobs provide insurance like Starbucks
3️⃣ Some people that retire early end up going back to work anyway cause they’re bored.
4️⃣ It takes less money to save up then Lean FIRE or Fat FIRE
5️⃣ Working part time allows you to still get community and social interaction as well as a purpose.
6️⃣ If you fully retire early, it might be harder to find work if theres a huge gap in your work experiences. Keeping a part time job will at least show some work experience on your resume.
I plan to achieve this by age 40-45, depending on if my lifestyle changes… or simply based off my average return. My current Barista FI number is $500,000. This could change.
☕️ Barista Fi Calculator: https://bit.ly/3o19Sw9
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I intended to include Lean FIRE and Fat FIRE today as well, but I want to keep these posts relatively short and easy to follow.
The great part about both of these options is that you can have coast or barista FI as a goal, but that doesn’t mean you have to step down to part-time. You could continue working full-time once you reach it and simply have even more at retirement than you intended.
⏭Fast forward: if you want to skip ahead to Lean FIRE and Fat FIRE you can watch Graham Stephan explain this way better than me 🤩
@GrahamStephan 🎥: https://bit.ly/3zIFZCW
What do you think? 🤔💭
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@brendanschema dude and you won’t have to put in nearly as much money as I do since you’re starting younger! I wish I knew about this when I was in college but that’s okay!
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@sydward 🌱 Slow growth! I want to make the most of my knowledge
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This is great🔥
One thing to add that most people don’t realize is if you’re on a good track with your investments early you can actually “step down” sooner than you think. For example, instead of working 20 more years to achieve my Barista FI, I could leave my high-stress high(ish)-paying job in, say, 10 years for one I’m more passionate about. Maybe my new job pays ~10-20% less but because I esta…See more
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Is it just me, or is it totally believable that the little girl in this picture is actually @sydward as a child?? I can see the resemblance. 😁
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@Justin_O pwaahahahahhaa yas! 🤔
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Patrick@namastestrategy
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@AxA of course!! I intend to keep y’all in the loop with everything I learn. no gatekeeping info here 😎
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@blairnecessities thank you!! And I agree. I shared this in my first post about FI/RE but the reason I’m going for Barista FI at the moment is because I work 2 jobs right now, and I’d rather cut back to just teaching dance cause I’m passionate about that but it doesn’t pay enough. But funny enough… my FIRE age wasn’t far behind my barista FI number. Which just shows how much investing early makes a…See more
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@ctsshah I know right? Like one thing I have to factor in is that if I step down from full time and just teach dance… my studio doesn’t offer insurance. so I’d have to save money for that too or possibly work limited part time just to get insurance… and Starbucks gives full medical but most part time right now only gives a limited medical which is just sad
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@Justin_O HAHAHA. I mean… my life is full of memes. Might as well become my own meme
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@namastestrategy okay I have been trying to think of a hashtag to catalog all these FI posts and #financialfirestarter sounds pretty good. i was also considering an homage to “Ryan started the fire” from Dwight shrute from the office
#sydwardstartedthefire is long
#FIREbender last airbender anyone
#DKfire homage to smash bros…See more
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Patrick@namastestrategy
@sydward I like paying homage to The Office!
If you go with #financialfirestarter, this could be your theme song:
https://youtu.be/wmin5WkOuPw
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@sydward absolutely. I think it’s important to share this information as most people don’t know they can achieve (relative) FI a lot sooner than they’d think.
Also, I will be disappointed if you don’t choose #FIREbender .
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@namastestrategy okay that would be epic. I’m just imagining editing office clips with that music in the background. Next tiktok maybe idk 😂
@blairnecessities ugh see I’m really leaning towards #FIREbender . I’d feel like a traitor cause I tested as an airbender 😭 but if I went with that I could pull out uncle iroh quotes so 🤔
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@sydward "There is nothing wrong with a life of peace and prosperity. I suggest you think about what it is you want from your life."
Look, my favorite Iroh quote aligns perfectly with FIRE….
And hey, maybe you’re just the avatar and are a master of all.
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@ctsshah @blairnecessities the avatar of finance hmm I could roll with that. Everything changed when the #FIREnation attacked
#FIRElordsydward #avatarthelastinvestor #FIREbender #FIREnation so many options 😂 im weak
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I sense a TikTok @sydward
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@ctsshah “this is how ATLA characters would invest in the stock market” 💀
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@financepillowtalk dude being single with no kids is the hardest part. It’s almost impossible for me to know what to calculate when I’m not in that stage of life at all yet 🤔
who can we recruit to answer this question for real
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@financepillowtalk @sydward . I've got kids. Divorced dad of 3 here. And I can tell you, expenses related to your kids are EXACTLY $1 more then you bring home. Just enough to keep you poor all the time.
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@Justin_O so how you solve this problem is… so okay you just… here’s what you do… and yeah