What is Barista FIRE? Retire Sooner

What is Barista FIRE? Retire Sooner

What is Barista FIRE? Retire Sooner

FIRE is financial independence, retire early. A lot of people would like to phrase it as financial independence, retire eventually.

Barista FIRE is when you can cover almost all of your expenses from savings, but will need additional income to supplement your retirement.

To work on achieving Barista FIRE, you first need to have some good financial goals to help guide your way. Let’s set those up and work towards hitting Barista FIRE.

Find Your Financial Independence goal.

This can be done easily by taking your annual expenses and multiplying that by 25.

Figure out how much you need to make through side hustles.

If we use the safe-withdrawal rate of 4% we can figure out how much less you need to save up.

Take Action

We have our financial goals in place, and we have a good amount of retirement savings before we hit our Barista FIRE.

Pros:

There are so many opportunities that await. You can leave your job and start looking for projects that pay and excite you.

Cons:

At this point, you are not retired. A lot of people want to be fully financially independent, but being Barista FIRE you are like 75% of the way there. You still need to work.

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