What is Barista FIRE? A Blend of Early Retirement and Part-Time Work

ProjectionLab
5 min readUpdated Aug 13, 2025Aug 13, 2025

Explore Barista FIRE, a modern retirement strategy that blends part-time work with early retirement, offering a unique approach to financial independence and lifestyle flexibility.

Illustration of coffee cup representing barista fire

Barista FIRE (Financial Independence Retire Early) or BaristaFI is a retirement strategy where individuals aim to achieve financial independence early but continue to work part-time jobs. This approach allows them to cover living expenses, often including health insurance, without depleting their retirement savings.

Embracing Barista FIRE: A Balanced Early Retirement Strategy

Barista FIRE combines the stability of part-time work with the freedom of semi-retirement, transitioning from full-time to a lower-stress, part-time job. This method supports maintaining health benefits and managing living expenses, offering a balanced lifestyle. It’s particularly appealing for those seeking early retirement but wary about the long-term sustainability of their savings and healthcare costs, providing a practical solution for financial security and personal well-being, enabling a smoother transition to full retirement.

Benefits of Barista FIRE

The Barista FIRE strategy offers several advantages for those who are eligible:

  • Financial Flexibility: Barista FIRE allows you to budget and manage expenses without heavily drawing on savings.
  • Employee Benefits: Part-time work can offer access to essential benefits like health insurance.
  • Lifestyle Balance: It provides a blend of work and leisure, reducing the stress of a full-time job.
  • Savings Preservation: The strategy preserves your retirement savings while providing additional income for living expenses.

Calculating Your Barista FIRE Number

To plan effectively for Barista FIRE, calculating your financial target using a FIRE calculator is helpful. Here’s a step-by-step breakdown:

  1. Estimate Your Annual Expenses: Let’s say your expenses are $60,000 per year.
  2. Deduct Your Part-Time Income: If you plan to earn $25,000 from part-time work, your adjusted expenses would be $35,000 ($60,000 - $25,000).
  3. Apply the FIRE Formula: Your Barista FIRE number, following the 4% Rule, is $875,000 ($35,000 x 25).

This calculation helps set a clear financial goal, factoring in both your savings and part-time income.

What is the Difference Between Coast FIRE and Barista FIRE?

Coast FIRE and Barista FIRE are two unique strategies within the FIRE movement. Here’s how they differ:

StrategyMain GoalIncome SourceKey Benefits
Barista FIREAchieve semi-retirement with part-time workPart-time job + investment growthHealthcare benefits and stable supplemental income
Coast FIREAchieve full retirement without additional savingsPassive investment growthFreedom from mandatory contributions while investments grow

While Coast FIRE focuses on building enough savings early on to let your investments grow without further contributions, Barista FIRE combines ongoing part-time income with savings to cover current living expenses. Barista FIRE involves a balance of part-time work and savings, while Coast FIRE relies solely on investment growth.

Frequently Asked Questions About Barista FIRE

What is the difference between Barista FIRE and regular FIRE?

Regular FIRE (Financial Independence Retire Early) typically involves saving enough to completely stop working, while Barista FIRE involves continuing part-time work to supplement your retirement income. This approach reduces the total savings needed and provides ongoing benefits like health insurance.

How much do I need to save for Barista FIRE?

Your Barista FIRE number depends on your annual expenses minus your expected part-time income. For example, if you need $60,000 annually but plan to earn $25,000 from part-time work, you’d need $875,000 in savings (using the 4% rule: $35,000 × 25).

What are good part-time jobs for Barista FIRE?

Popular Barista FIRE jobs include barista work (hence the name), retail positions, consulting in your former field, teaching, freelancing, and seasonal work. The key is finding something that provides the benefits you need while maintaining work-life balance.

Can I get health insurance with Barista FIRE?

Yes, many part-time jobs offer health insurance benefits, especially if you work 20+ hours per week. This is one of the main advantages of Barista FIRE over traditional early retirement, where you’d need to purchase expensive individual health insurance.

Is Barista FIRE right for everyone?

Barista FIRE works best for people who enjoy some work structure, need ongoing benefits, or want to reduce their required savings amount. It’s less suitable for those who want complete freedom from work or have health issues that prevent part-time employment.

How do I transition to Barista FIRE?

Start by calculating your Barista FIRE number, then gradually reduce your full-time hours or switch to part-time work in your current field. Consider building skills for your desired part-time job while still working full-time to ensure a smooth transition.

Planning for Barista FIRE with ProjectionLab

ProjectionLab goes beyond simple Barista FIRE calculators, helping you understand how part-time income and reduced expenses can impact your retirement strategy. By analyzing various scenarios, ProjectionLab enables you to plan for a balanced and financially secure semi-retirement. Explore the possibilities of Barista FIRE for a fulfilling retirement journey at ProjectionLab.


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