Coast FIRE vs Barista FIRE: which one fits you?

Coast FIRE means you've already saved enough that, left alone to grow, your investments should reach your full FIRE number by a later age, so from now on you only need to earn enough to cover today's bills. Barista FIRE means you've left full-time work but keep some part-time income, so your savings only need to cover the gap between what you spend and what you still earn.

The short version: Coast FIRE is about when you can stop saving. Barista FIRE is about how much less you need once you stop full-time work. Many people use both, one after the other.

This is general education, not financial advice. The examples are made up, and real returns are never as smooth as a calculator's. Please check big decisions with a licensed professional.

Coast FIRE, in plain English

Your FIRE number is roughly what you'd need invested to cover your yearly spending for good, often about 25 times that spending (the 4% rule). Your Coast FIRE number is how much you'd need invested today for growth alone to get you to that FIRE number by a later age.

The math is one line: Coast FIRE number = FIRE number ÷ (1 + yearly growth) ^ years until you retire.

Sam is made up. Sam is 35, wants to retire at 60 and expects to need $1,000,000. Assuming investments grow 5% a year after inflation (an assumption, not a promise), Sam's Coast FIRE number is about $295,000 today. If Sam has that invested, Sam could stop adding to retirement savings and still be on track, as long as work covers everyday costs until 60.

Coast FIRE doesn't mean stopping work. It means work only has to pay for the present. Many people use it to take a lower-paying job they enjoy, cut hours, or take a mini-retirement season.

Barista FIRE, in plain English

The name comes from the idea of a part-time job that pays the bills and, in the US, sometimes comes with health insurance. It can be any work: consulting a few days a month, tutoring, seasonal work or a small business.

The math: Barista FIRE number = (yearly spending − yearly part-time income after tax) × 25 at a 4% withdrawal rate.

Ana is made up too. Ana spends $50,000 a year. Her full FIRE number at 25 times is $1,250,000. If part-time work brings in $20,000 a year after tax, her savings only need to cover $30,000, so her Barista FIRE number is about $750,000. That's $500,000 less, which can mean leaving full-time work years sooner.

The catch: Ana has to keep earning that $20,000, and her savings start funding the rest straight away. Earning a little in early retirement covers the tax and Social Security side of part-time income.

Side by side

| | Coast FIRE | Barista FIRE | |---|---|---| | Are you still working? | Yes, enough to cover today's costs | Yes, part-time or now and then | | Are you still saving for retirement? | No (or not much) | Usually not | | Are you drawing on savings? | No, they keep growing untouched | Yes, for the gap work doesn't cover | | The number to hit | FIRE number ÷ growth over the years left | (Spending − work income) × 25 | | Biggest risk | Growth comes in lower than you assumed | The part-time income stops | | Often fits | Younger savers with decades of growth ahead | People close to FIRE who'd enjoy some work |

Which one fits you?

Coast FIRE often fits if you're earlier in your career, you already have a solid start invested, and you'd like to trade some pay for a job you enjoy more or for more time with family. Time is what makes it work, so it's strongest in your 20s, 30s and early 40s.

Barista FIRE often fits if you're close to your full number, you're tired of full-time work but not of working, and you can see a realistic source of part-time income, ideally one that also helps with health insurance.

You don't have to choose. A common path: reach Coast FIRE, downshift to work you like while savings grow, then move to Barista FIRE or full FIRE when the numbers line up. The Seasons planner shows what a break along the way costs.

Things to watch with both

• The growth rate. A Coast FIRE number at 7% growth is much smaller than at 4%. Try a cautious rate too, and keep checking each year.
• Sequence risk. For Barista FIRE, a market drop in the first years of drawing on savings hurts more than the same drop later. Retiring in a bear market covers the levers people use.
• Health insurance. Before 65, coverage can be one of the biggest costs. See healthcare before Medicare.
• Social Security. Fewer years of full earnings can mean a smaller benefit later. Social Security at 62, 67 or 70 explains the timing.

Common questions

What is the difference between Coast FIRE and Barista FIRE?

Coast FIRE means your savings can grow to your full FIRE number on their own, so you only work to cover today's costs and stop saving for retirement. Barista FIRE means you've left full-time work and part-time income covers some of your spending, so your savings only need to cover the rest, starting now.

Is Coast FIRE or Barista FIRE easier to reach?

It depends on your age and savings. Coast FIRE can come early in a career because time does most of the work. Barista FIRE needs a larger amount saved, since you start drawing on it, but less than full FIRE. Many people reach Coast FIRE first and Barista FIRE later.

How do I calculate my Coast FIRE number?

Divide your FIRE number by one plus your expected yearly growth rate, raised to the number of years until you retire. For example, $1,000,000 needed in 25 years at an assumed 5% growth after inflation gives about $295,000 today. The uFIRE Coast FIRE calculator does this for you.

How much part-time income do I need for Barista FIRE?

Enough to cover the part of your spending your savings won't. At a 4% withdrawal rate, every $1,000 a year your work covers after tax cuts about $25,000 from what you need saved. Someone spending $50,000 who earns $20,000 after tax needs about $750,000 instead of $1,250,000.

Can I do Coast FIRE and Barista FIRE at the same time?

Yes, in a way. Many people reach Coast FIRE, switch to lower-paid or part-time work they enjoy, and then lean on that same income for Barista FIRE when they start drawing on savings. The two are stages more than rival plans.

Do I need health insurance from work for Barista FIRE?

Not necessarily, but you need a plan for it until Medicare at 65. Some part-time jobs offer benefits, and marketplace plans under the Affordable Care Act are the other common route. Your income affects any subsidy, so it's worth planning both together.

Next step

Run both numbers with your own figures: the Coast FIRE math at the top, and how part-time income shrinks your target below it.

Try the Coast and Barista FIRE calculator →