Here Are 10 Reasons You Might Decide to Coast to Financial Independence Instead of Pursuing FIRE
As much as I love the Coast FI approach of front-loading your retirement savings, taking your foot off the gas, and letting compounding do the heavy lifting, I know it’s not for everyone.
For some it’s simply out of reach, and for others it’s not aggressive enough.
But if you’re looking for a balanced approach to financial independence, it may be just the right fit.
Here Are 10 Reasons You Might Decide to Coast to Financial Independence Instead of Pursuing FIRE
1. You have young kids.
If you’ve got young kids and want to take full advantage of the precious moments you have right now, coasting to financial independence can be a great option. Remember, you’ve only got 18 summers with them at home—make the most of them.
2. You’re feeling burned out.
Many people have burned out on the path to FIRE — focusing too much on the destination or FI number while forgetting to enjoy life now. For those that have started to feel burned out, either from overwork or extreme frugality, coasting may be a great option.
3. You have aging parents.
If you’ve got aging parents, you understand that your remaining time together is limited. Deciding to coast to financial independence can free up a lot of time now, allowing you to spend that time with your aging parents while you still can.
4. You want to travel while you’re young.
Coasting allows you to downshift your work much earlier, letting your investments ride in the background while you work flexibly to cover living expenses now. This can free you up to do more significant travel during your 20’s and 30’s, some of your prime years in terms of health, adventure, limited responsibility, and desire to travel.
5. You’re feeling socially isolated.
Coasting takes the focus off of your FI number and date and places it on the lifestyle you want to live now while working flexibly to cover your living expenses. This allows you to add back the things that bring you social connection and fulfillment, leading to a more balanced and well-rounded life.
6. You feel deprived.
By pursuing coast FI, you will take the stress off of achieving FI as quickly as possible no matter the cost, allowing you the space to enjoy yourself on the journey to FI.
7. You are interested in pursuing more fulfilling work now.
Coasting to financial independence allows you to get creative with your work since you only need to cover your living expenses. This means that you might decide to leave your high-paying but stressful job to pursue less stressful, or simply more meaningful, work.
Check out The Best Jobs for Coast FIRE.
8. You see yourself working even after FI.
The way I look at it, if you plan to continue working after you reach financial independence, then you might as well be coasting. Coasting allows you to access many benefits of a FI lifestyle now, without delaying until you reach your ultimate FI number. Of course, the tradeoff is that you will need to work to cover living expenses, but if you plan on working after FI anyways, then coasting is the way to go.
9. You believe the journey is just as important as the destination.
If you’re focused on the rainbow rather than the pot of gold, coast FI is for you. Coasting offers you the ability to enjoy a slow and steady approach to financial independence, rather than an all-out blitz, binge and purge relationship with work that many take to extreme ends on the path to FIRE. Like my good friend Jess from The Fioneers always says “The journey should be as remarkable as the destination.”
10. You started saving and investing early.
If you were lucky enough to start saving and investing from a young age, you might be well on your way to achieving coast FI. Coasting to financial independence becomes much easier the younger you are because it gives your assets a long time to grow and compound on your behalf.
There you have it, ten reasons you might decide to coast to financial independence.
Interested in the full article? Check out: 10 Reasons You Might Decide to Coast to Financial Independence Instead of Pursuing FIRE,
What do you think? Anything you would add to the list? Drop a comment below.
Wait, one more thing—I need your help.
I’ve got a big favor to ask—I need your feedback.
Specifically, I want to know how I can best help you on your path to financial independence?
Do you have any specific questions about coasting to financial independence that I can answer?
Where are you stuck?
Where are you confused?