The Financial Independence, Retire Early (FIRE) movement has evolved. While traditional FIRE requires saving a massive nest egg to cover all expenses forever, a popular alternative has emerged: Barista FIRE.
Semi-Retirement and Health Benefits
Barista FIRE involves saving a smaller investment portfolio that covers your baseline living expenses, while you continue to work a low-stress, part-time job to cover discretionary spending. This job is often chosen for its social perks and health insurance coverage (hence the term "barista").
This approach significantly reduces the size of the nest egg you need to save. For example, if you need $40,000 a year to live, traditional FIRE requires a $1,000,000 portfolio. Barista FIRE allows you to retire with a $500,000 portfolio if your part-time job covers $20,000 of your annual expenses.
Run your own numbers
Use our Retirement Number Tool to see how these principles apply to you.