BaristaFI, CoastFI - Can someone explain these?

[jim555]

I have seen these terms mentioned on various boards.  To me it sounds like someone is not FI, they quit the main job and take some low paying job to coast their way through. 
It sounds like a horrible idea since they still HAVE to work in some capacity.  I could understand if you are FI and want a PT job, but that is different since you don't have to have a job.

[FIRE Artist]

I hadn't heard of the term, but it sounds a lot like career downshifting. 

Why do it?  A ton of reasons: better work life balance, avoid burnout, seeking more joy in your life, to name just a few.

I have done this myself, it was the right decisions for me.  When I made the move, I was planning for FIRE at 55; now that I have learned more about early retirment, I can go as early as 47 just through coasting on my current investments and contributing to a mandatory public pension.  I am FI, I simply want to build some more equity in my house and pad out the stash before I pull the plug completely, all while working a no stress, low hours, six figure job.  I am noodling around with the idea of going part time in another year or two.  But I really went from a ridonculous fire hose of cash type of job, to a garden hose type of job, it still fits the CoastFI definition though. 

http://investmentmoats.com/financial-independence/what-coasting-financial-independence-or-barista-fi-is-all-about/

[GnomeErcy]

I'm planning on pursuing "CoastFI" later, once my house is paid off. We will be extremely close (if not all the way) to FI by that point, but once the house is paid off I expect my monthly expenses will be quite a bit less. Thus, I can achieve a better work-life balance in the short-term  and minimize risk.

For some, working part-time at a healthy work-life balance for 5 years is more appealing than a grueling 2-3 years of full-time in a bad work environment.

It's all about balancing goals with the realities of life.

[WSUCoug1994]

Trading my high stress, long hours (albeit very high pay) for some part-time work at Home Depot is certainly my plan.  I won't need to work but I think I will enjoy some structure in RE in a "industry" I love.

[J Boogie]

I have seen these terms mentioned on various boards.  To me it sounds like someone is not FI, they quit the main job and take some low paying job to coast their way through. 
It sounds like a horrible idea since they still HAVE to work in some capacity.  I could understand if you are FI and want a PT job, but that is different since you don't have to have a job.

I think if you're just making PT barista money and on track to coast your way through, you are probably able to adjust your living expenses enough to not have to work.

In which case you're living check to check in the best way possible. I plan on doing this because I love making espresso, more than I enjoy drinking it.

[Dances With Fire]

I'm planning on pursuing "CoastFI" later, once my house is paid off. We will be extremely close (if not all the way) to FI by that point, but once the house is paid off I expect my monthly expenses will be quite a bit less. Thus, I can achieve a better work-life balance in the short-term  and minimize risk.

For some, working part-time at a healthy work-life balance for 5 years is more appealing than a grueling 2-3 years of full-time in a bad work environment.

It's all about balancing goals with the realities of life.

^^^ +1

[jim555]

From my view the drawback is PT work usually pays much less than a FT "real" job so you actually will loose more "life energy" than if you stuck with the soul sucking FT job.

[GnomeErcy]

From my view the drawback is PT work usually pays much less than a FT "real" job so you actually will loose more "life energy" than if you stuck with the soul sucking FT job.

I'm guessing you haven't had a truly soul-sucking FT job then.

[retireatbirth]

It is downshifting. There is often a semantic debate for the reasons you mention. I've done some analysis and CoastFI tends to work best when you are at least 70% FI. Under most market conditions, you would be able to reach your FI number in less than 10 years via coasting.

[jim555]

From my view the drawback is PT work usually pays much less than a FT "real" job so you actually will loose more "life energy" than if you stuck with the soul sucking FT job.

I'm guessing you haven't had a truly soul-sucking FT job then.

I had a total soul sucking job.  No PT job would even come close in pay so I put up with it and eventually got out.

[MrMoneySaver]

a no stress, low hours, six figure job

Are they hiring?

[FIRE Artist]

I think this is something you either get or don't get.  Not everyone wants a life without work after age 30.

[GnomeErcy]

From my view the drawback is PT work usually pays much less than a FT "real" job so you actually will loose more "life energy" than if you stuck with the soul sucking FT job.

I'm guessing you haven't had a truly soul-sucking FT job then.

I had a total soul sucking job.  No PT job would even come close in pay so I put up with it and eventually got out.

I don't think anyone pursuing BaristaFI or CoastFI expects the pay in this sort of part-time work to be anywhere close to competitive with FT work. They're looking for simply enough, and low stress.

If your goal is to hit full FI quickly then yeah obviously this doesn't make sense. But people who choose BaristaFI/CoastFI aren't trying to hit it quickly at the expense of their health/sanity.

[FIRE Artist]

a no stress, low hours, six figure job

Are they hiring?

Actually we just filled our last open position until the next budget cycle. 

For me, a no stress job means one where I am no longer in operations management, opting to cash in on my education and career experience capital for an internal consultant position instead.  Low hours means 38 hr work week with no overtime vs. typical 65+ hrs in the office and on call 24/7.  I think many professionals could find a similar version of my job in their current career if they wanted to, and quite often it can be found in the public sector.  Life is so much nicer not getting calls in the middle of the night because a production line has gone down and the rig is on standby waiting for their equipment to be repaired.  I paid for my sanity in much lower take home pay, but it is worth every cent. 

[LifeHappens]

I think this is a Different Strokes/Different Folks deal. For me, DH and I will be set up pretty well in a couple years to only need about $25,000 annually in earned income to support our ridiculously spendypants lifestyle. I would happily work 3 days per week at a nonprofit or small office, leave my work at work, and enjoy the rest of my time when we get to that point. That is a much lower stress option than busting my hump to add another $625,000 to the stash.

[shelivesthedream]

I think this is a great choice to have. If we never touched our stash and also never added to it, compounding would mean we have probably saved enough for a traditional 65 retirement already at age 27. The pressure is, in a sense, off. All we have to do is not mess up and spend it all, and cover our expenses til then. CoastFI/BaristaFI seems to be that but with compressed timescales. It's not a race to the finish line for everyone. I am enjoying noodling around and seeing what happens at the moment. I like that people are keen to downshift earlier. I think financially-responsible lower key working is a great norm to promote. I've always thought a couple where both work full time until 65 is a bit mad.

[Prairie Stash]

I ran a quick scenario of working 50% time (every second week off) to see what it would look like personally. I wouldn't have much in savings, but I noticed the compounding on my savings would take me to the finish line of FIRE (in less than 7 years) wheras full FIRE would be 4 thats right, half work doesn't double the timeline). The question then comes, do I want to do the push now, while my kids are young, for full FIRE or slow down, enjoy my kids now, and retire a couple years later.

Its down to a lifestyle choice. Sometimes there's no second chances. Whatever decision is made CoastFI or full FIRE sooner, comes with permanent consequences.