Part-time work, full-time freedom
Barista FIRE sits between working full time and retiring completely. Your portfolio covers part of your spending, and part-time or flexible work covers the rest. The name comes from the idea of taking a part-time coffee shop job partly for the health insurance benefits some chains have offered, but any lower-stress, lower-hours work counts.
Every $10,000 of yearly part-time income cuts the portfolio you need by $250,000 at a 4% withdrawal rate. Someone spending $50,000 who earns $20,000 part-time needs $750,000 invested rather than $1.25 million, which can bring the date you leave full-time work many years closer.
Things to plan for
Health insurance is the big one in the US before Medicare at 65. Check whether a part-time job offers it, and price marketplace plans for your income. Also think about how long you plan to work part-time; many people do it for a decade while the portfolio keeps growing, then stop entirely.
How part-time income shrinks the number
Every dollar of steady part-time income removes about $25 from the portfolio you need at a 4% withdrawal rate. With $50,000 of yearly spending, full FIRE needs $1.25 million. Earning $10,000 a year part-time drops the target to $1 million, $20,000 drops it to $750,000 and $30,000 drops it to $500,000.
That is why a modest job you enjoy can bring the date forward by many years. The trade-off is that you depend on finding and keeping that work, so it helps to have a skill that is in demand in part-time or freelance form.
Common questions
How much do I need for Barista FIRE on $50,000 a year?
If part-time work covers $20,000 of it, about $750,000 at a 4% withdrawal rate, compared with $1.25 million for full retirement.
What is Barista FIRE?
Leaving full-time work once investments can cover part of your spending, with part-time income covering the rest.
How is it different from Coast FIRE?
Coast FIRE means you stop saving but keep earning enough for current costs. Barista FIRE means you start drawing on investments while working part-time.
How much part-time income do I need?
Spending minus what your portfolio can safely provide, which is the last row of the results.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.