Skip to content
Wednesday, May 21, 2025
Y M L P-207

Y M L P-207

It's a Business Adventure

  • Insurance Business
  • Insurance Insider
  • Health Insurance
  • Business News
  • Finance
  • Business
  • About Us
    • Advertise Here
    • Contact Us
    • Privacy Policy
    • Sitemap
You are Here
  • Home
  • What Is Barista FIRE? | NextAdvisor with TIME
Health Insurance

What Is Barista FIRE? | NextAdvisor with TIME

10/07/2022 3:24 AM11 min read Sylvia

Table of Contents

Toggle
  • What Is Barista FIRE? 
  • How Much Money Do You Need to Reach Barista FIRE?
    • Barista FIRE Creates Less Pressure
  • Types of FIRE to Suit Your Needs
    • Lean FIRE
    • Fat FIRE
    • Coast FIRE
    • Slow FIRE 
    • Spouse FI
    • Pro Tip
  • Barista FIRE vs. FIRE 
    • How Long Are You Willing to Live a Lifestyle of Low Expenses?
    • Do You Like Your Job?
    • What Will You Do For Healthcare? 
    • What Makes the Most Sense for Your Lifestyle?
  • Barista FIRE vs. Lean FIRE 

We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Living off of assets alone upon retirement can feel scary. Barista FIRE – a spinoff of the Financial Independence, Retire Early (FIRE) movement – is an alternative way to achieve financial independence.

“I was a general manager at a movie theater making a little below $80,000 a year when I first learned about FIRE,” says Tom Brickman, a financial educator and founder of The Frugal Gay, a company that provides education and coaching on how to build wealth through real estate. Brickman says he’s been hustling since 2009 to reach his FIRE number and become financially independent. When he finally reached this milestone, however, he felt fear instead of relief.

“I hit my FIRE number of $2 million in 2019 and was ready to go, but then had self-doubt,” he says. “So I hung out at my job for two extra years. I finally left my job in January of 2022 at 39 years old.” Brickman and his husband regrouped on their retirement planning and decided that his husband would still work in order to provide health insurance and a residual monthly income for the household.

The Brickman household’s financial outlook is an example of Barista FIRE, an interpretation of the FIRE movement that involves maintaining a low-stress job in retirement to bring in residual income and, more importantly, health insurance coverage. Here’s what to know about Barista FIRE and whether it’s right for your personal circumstances, based on people we interviewed who’ve achieved it.

What Is Barista FIRE? 

Barista FIRE is an interpretation of the Financial Independence, Retire Early movement in which participants reach a FIRE number and then maintain a low-stress or part-time job for residual income or to pay for health insurance.

Barista FIRE has the same goal as other versions of FIRE: retire early with enough money in investments that your annual gains can cover your monthly expenses. You then switch to a part-time job or side hustle to provide health insurance or offset your spending habits.

The term Barista FIRE was coined in response to Starbucks and other similar companies offering healthcare to their part-time employees. Starbucks offers health insurance eligibility to hourly workers who work at least 240 hours a quarter, or a little under 20 hours a week, according to an internal document from the company. 

The approach is especially popular in the United States, where the cost of out-of-pocket health insurance can quickly inflate living expenses. The national average for monthly health insurance cost for an American enrolled in an Affordable Care Act (ACA) plan in 2022 is $438, according to reporting from KFF, an independent non-profit organization focused on national health issues. FIRE enthusiasts see Barista FIRE as a way to keep health insurance expenses low and protect their financial independence nest egg.

How Much Money Do You Need to Reach Barista FIRE?

To know how much money you need to start living a Barista FIRE lifestyle, the first step is to calculate your FIRE number, the amount of invested assets you need to become work-optional. Your FIRE number can be calculated by multiplying your annual expenses by 25:

Annual Expenses x 25 = FIRE Number

This formula assumes investment gains of 4% each year, which you would withdraw and live on. For Barista FIRE enthusiasts, however, your income would be factored in to the equation, lowering the number of assets you actually need to transition your career.

To calculate your Barista FIRE number:

  • Figure out your yearly expenses.
  • Calculate your full FIRE number (Annual Expenses x 25). 
  • Estimate the potential salary from a part-time job or side hustle. 
  • Subtract your yearly expenses from the part-time salary. 
  • Your Barista FIRE number is 25 times the supplemental income needed. 

Barista FIRE Creates Less Pressure

Barista FIRE appeals to many because you don’t have to save up as much money or wait until you have accumulated 25 times your annual expenses.

“It takes a lot of work and discipline to achieve FIRE,” says Melissa Houston, a Certified Public Accountant and financial educator who works with entrepreneurs to create financial independence. “With FIRE, there’s a lot of pressure on building your nest egg and financial assets that you can draw on for the rest of your life. If you find something you love doing, and it pays well, you can still manage to work part-time while you invest and save. Barista FIRE can be a way to build up financial security without as much pressure.”

The right part-time job or side hustle can make Barista FIRE an appealing option. You can achieve the goal of financial independence sooner and spend your time doing what you enjoy, and what would normally be out-of-pocket healthcare costs can be dumped back into an emergency fund, mutual funds, or other passive income vehicles instead.

Related: I Hit My FIRE Number at 37, But I’m Not Retiring Yet. Here’s What I’m Doing Instead

Types of FIRE to Suit Your Needs

FIRE has become increasingly popular in retirement planning, and Barista FIRE is one of a number of different perspectives. Here are a few of the more popular versions of FIRE.

Lean FIRE

In Lean FIRE, your retirement accounts only cover basic necessities like food, transportation, and rent. Your FIRE aspirations are categorized as Lean FIRE when your annual expenses comes out to $40,000/year or less. This version of FIRE means retiring sooner, but living frugally.

Fat FIRE

In Fat FIRE, you want a lavish lifestyle or anticipate over $100,000/year of expenses in retirement, which means your FIRE number is higher and will take longer to achieve.

Coast FIRE

This number is a midpoint you will hit on your way to hitting your FIRE number. Coast FIRE means you have enough money invested in your retirement accounts for future year-over-year compounding to get you the rest of the way to your net worth target; you can stop contributing to retirement accounts, which will reduce your current monthly expenses and free up cash.

Slow FIRE 

Slow FIRE emerged as a response to FIRE culture’s sometimes-unhealthy obsession with hustle. Slow FIRE means you’re being mindful to balance spending today with investing for tomorrow. It’s a way to pursue FIRE while still enjoying life now. 

Spouse FI

You may have already heard of this version of FIRE. It’s a personal finance aspiration in which a household can survive on one partner’s income, giving the other partner flexibility to stay at home or pursue part-time work. This version of FIRE is popular with couples who have children. 

Personal finance is personal, and the same is true for t
hose who choose one version of FIRE over another.

“I’m not trying to race to the finish line in five or even ten years. I just want to know I’ve got traditional retirement down,” says Matthew Lee, a dentist and someone who’s elected to pursue slow FIRE. “I don’t have a job that I dislike or want to get out of. I really enjoy what I do. For me, it’s about finding creative ways to build more income and give myself options while my retirement is slowly building in the background.” Lee is currently 34 and hopes to have the option to work less or become work-optional by age 50.

Pro Tip

Take some time to think about which version of FIRE makes sense for your life, finances, and goals. What worked for someone else may not be right for you.

Barista FIRE vs. FIRE 

Each version of FIRE offers the opportunity to create financial independence if the principles are followed. Here are some questions to ask yourself when comparing Barista FIRE to traditional FIRE.

How Long Are You Willing to Live a Lifestyle of Low Expenses?

With traditional FIRE, it may take longer to reach your FIRE number as you’ll need your investments to cover all costs, including healthcare. Barista FIRE could mean retiring from full-time work sooner.

Do You Like Your Job?

You may already be in a job or have a side hustle that you enjoy. Barista FIRE may allow you to scale back your hours, but if you enjoy what you do, that could motivate you to pursue traditional FIRE because you don’t dread your work days. 

What Will You Do For Healthcare? 

Paying for healthcare is a significant expense for many Americans. Your health insurance options should be considered when deciding which version of FIRE you’ll pursue. 

“One of the scariest things we had to figure out was how to replace the incredible health insurance we had through the New York state teachers association,” says Brittany Kline, who, along with her husband Kelan, are personal finance experts currently on pace to hit their FIRE number at the age of 35. The Klines became debt-free and quit their full-time jobs in 2017 after building a multiple six-figure financial blog. They elected to get health insurance through a Christian healthcare ministry, which works similarly to regular health insurance; they put money in each month, and the plan covers anything over $500. 

“When we joined, we were concerned the paperwork would have to be perfect, and they wouldn’t be lenient if they were going to cover things,” says Kelan. “This was right when we were having our second child – which cost over $35,000 – and it was entirely covered by the plan. We’ve used the plan multiple times for tens of thousands of dollars, and it’s all been covered.”

Related: Our Family Achieved FIRE at 39 and 41 on Salaries Of Under $100K a Year. Here’s How We Did It

What Makes the Most Sense for Your Lifestyle?

It’s natural to read articles featuring regular people who achieved FIRE and want to follow a similar path. But what worked for someone else may not work for you. In deciding which version of FIRE to pursue, think about what makes sense for the type of lifestyle you’d like to live. 

Barista FIRE vs. Lean FIRE 

Barista FIRE means you reach a FIRE number and work part-time to pay for healthcare or additional expenses. In contrast, Lean FIRE means you reach a FIRE number and no longer work at all, but have to make ends meet on a bare-bones fixed budget. 

“My husband and I achieved lean FIRE, but not full FIRE, especially now with the stock market down,” says Walli Miller, a money coach who teaches women how to build wealth and become work-optional. “In 2015, I found an article about a couple who had reached financial independence. I read the article and sent it to my then-fiancé. There had been a change in management at [my] work, and I was like, ‘Oh, my goodness, I have to do this for another like 20 to 30 years?’ My fiancé and I committed to working on FIRE.”

Miller says she looked at the couple’s budget and started figuring out how to get some extra money to begin investing. “Weused a little bit of money each paycheck to pay down $22,000 in student loan debt, and I started maxing out my 401K at my job for the Federal Government,” she says. The couple achieved Lean FIRE in 2020.

FIRE is a way to create financial independence and give yourself options. For some, it’s not about retiring; it’s the opportunity to choose how you’ll spend your time without worrying about money. Decide which version of FIRE aligns with your goals, then start taking action today to make them happen.

Amazon Fba Business, Atlanta Business Chronicle'S, Boss Baby Back In Business, Business Administration Degree, Business Attire Women, Business Card Design, Business Cards Templates, Business Casual Dress, Business Casual Outfits, Business Checking Account, Business Credit Card, Business For Sale Near Me, Business Intelligence Platform, Business Lawyer Near Me, Business Loan Calculator, Business Name Ideas, Business Professional Women, Business Spectrum Login, California Business Entity Search, Capital One Spark Business, Carl Weber'S The Family Business, Charlotte Business Journal, Custom Business Cards, Delaware Business Search, Fl Sos Business Search, Florida Business Search, Harvard Business Publishing, Insurance For Small Business, Kelley School Of Business, Maryland Business Express, Maryland Business Search, Moo Business Cards, National Business Furniture, New York Business Search, Ohio Business Gateway, Onedrive For Business, Online Business Ideas, Paramore Misery Business, Risky Business Cast, Small Business Insurance, Spectrum Business Customer Service, Tom Cruise Risky Business, Us Small Business Administration, Verizon Wireless Business, Verizon Wireless Business Login, Virtual Business Address, What Is Business Administration, Women'S Business Casual, Yelp Business Login, Yelp For Business
Share
Facebook Twitter Pinterest Linkedin

Post navigation

Apartments sold and rented – Globes
What’s covered in Biden’s executive order on reproductive rights

Related Posts

  • Overusing Your Health and fitness Insurance plan

    Overusing Your Health and fitness Insurance plan

    27/07/2023 2:39 PM22/11/2022 8:24 AM
  • The Engineering Network Announces Event for 2023

    The Engineering Network Announces Event for 2023

    30/10/2022 8:03 AM15/11/2022 6:43 AM
  • Henry Kravis KKR | Conflict, Integrity, Collaboration

    Henry Kravis KKR | Conflict, Integrity, Collaboration

    29/10/2022 8:02 AM15/11/2022 6:43 AM
May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Jan    

Archives

Recent Posts

  • How Streamlined Claims Processing Boosts Insurance Industry Performance
  • Why Taking Anti-Racism Courses is Essential for Building Stronger Communities
  • The Importance of Women’s Firearms Training Programs for Personal Protection
  • L’aspirapolvere robot come regalo: perché è l’idea perfetta per ogni occasione
  • Russian Royal Family Engagement Rings: A Gemological Study

BL

Tags

Amazon Business Login Amazon Business Prime Bank Of America Business Account Best Business Schools business Business Attorney Near Me Business Bank Account Business Card Holder Business Card Maker Business Cards Near Me Business Card Template Business Casual Attire Business Casual Shoes Business Casual Woman Business Plan Examples Ca Business Search Capital One Business Credit Card Ca Sos Business Search Chase Business Checking Chase Business Credit Cards Chase Business Customer Service Chase Business Login Chase Business Phone Number Cheap Business Cards Citizens Business Bank Cox Business Login Digital Business Card Facebook Business Suite Finance In Business Free Business Cards Google Business Login Harvard Business School Lands End Business Massage Parlor Business Near Me Michigan Business Entity Search Mind Your Business Mind Your Own Business Ohio Business Search Risky Business Costume Skype For Business Small Business Loan Small Business Saturday 2021 Starting A Business Texas Business Entity Search Triumph Business Capital

Partner Links

desertridgems
thorpemarshgaspipeline.co

links

Shine with Diet Glow Up
Adventure Awaits at Cabin Roam

BR

opulenttrips
musines

bp

backlinkplacement.com

Related Article

How Streamlined Claims Processing Boosts Insurance Industry Performance
Finance

How Streamlined Claims Processing Boosts Insurance Industry Performance

21/01/2025 1:10 AM21/01/2025 1:12 AM4 min read
Why Taking Anti-Racism Courses is Essential for Building Stronger Communities
Finance

Why Taking Anti-Racism Courses is Essential for Building Stronger Communities

07/01/2025 2:31 AM07/01/2025 2:33 AM4 min read
The Importance of Women’s Firearms Training Programs for Personal Protection
Finance

The Importance of Women’s Firearms Training Programs for Personal Protection

02/12/2024 2:39 AM02/12/2024 2:39 AM5 min read
L’aspirapolvere robot come regalo: perché è l’idea perfetta per ogni occasione
Finance

L’aspirapolvere robot come regalo: perché è l’idea perfetta per ogni occasione

22/11/2024 2:55 PM24/12/2024 7:18 AM4 min read
ymlp207.net
Proudly powered by WordPress | Theme: Engage News by Candid Themes.

WhatsApp us