What is Coast FI?
Coast FI means you've reached a point where savings is optional. You are now free to work flexibly to cover your living expenses.
There are many paths to financial independence—from lean FIRE to fat FIRE and everything in between.
But in the end, the goal is all the same: to reach a point where you get to wake up every day and decide how you will spend your time. The traditional route to financial independence involves a combination of above-average income, far-below average spending, and a 50 to 80% savings rate. But, for those that want a more balanced approach, there’s Coast FI.
At its core, Coast FI means you‘ve invested enough to let it grow until your desired retirement age, no more savings needed. Now you can work flexibly to cover your living expenses.
It’s a more gradual approach to financial independence that offers tremendous flexibility up-front, without having to sacrifice years of your life with extreme frugality and an ultra-high savings rate.
So if you’re interested in coasting to financial independence, there are two simple steps you can take today.
Start tracking your net worth—this will give you an overview of your net worth, a key indicator of your progress to financial independence.
Then, crunch the numbers—this calculator will let you model your progress to Coast FI using your net worth, and spending projections.
And if you want to learn more about my journey from traditional FIRE to coast FI, including how I approach work/life balance and how coast FI has impacted my happiness, here’s an interview I did with Jess from The Fioneers:
Working A (LOT LESS) After Reaching Coast FI
by The Fioneers