The desire to retire early created the FIRE movement (Financial Independence Retire Early). The goal is to retire before the standard age of 65 and be financially independent.
But it all seems so black or white. You are either retired or you are not. And we know that noting is truly back or white, there are always some levels of gray in between.
In the case of FIRE, there are many subcategories. Here are a few:
- Coast Fire: You have saved enough to fund your retirement at age 65 but have to continue working to pay for your current living expenses.
- Barista Fire: You just need to work part-time to pay for a fraction of your current living expenses.
- Lean Fire: You can retire right now but only if you live a frugal lifestyle.
- Fat fire: You can retire and have a lavish lifestyle
What is Barista Fire?
Imagine that the cost of your lifestyle is $3,000 per month but your passive income produces only $2,500. In order to fill the $500 gap, you work part-time as a barista (figuratively), at the local coffee shop. Those who fit the barista fire description can semi-retire now by taking a low-stress part-time job.
I am practicing barista fire right now
My lifestyle costs me $1500/month.
I am making $1,150 from my passive income
I am short $350/month from being financially independent
My blog provides me more than $350/month in the form of affiliate sales
Thus, I am working part-time to fill the gap between my cost of living and my passive income.
Why should someone consider barista fire
Most people hate their job, and many people hate that their work take so many hour of their day.
You could just work just the amount of hour needed to cover the gap between your cost of living and your passive income. Ideally, you would work in a less stressful job. The rest of the time you could spend it doing thing you love.
Many part-time jobs offer health insurance, so your insurance expenses will be covered. Starbucks offers health care coverage to its part-time employees and many of its employees join Starbucks precisely because of that benefit.
Many people, after they become financially independent, they still like to be active and productive. Barista fire is a way to be active, productive, and still make some money.
You have one extra layer of protection against the fluctuations of the stock market. The fire formula depends, for the most part, on the 4% rule. But it’s crucial that the first few years the market grows 4% or more. If the market doesn’t grow at that rate, early retirement could be in jeopardy.
Part-time work offers an opportunity to have social interactions. One time I met a millionaire who was working two hours a day, as an Uber driver, because he was bored of staying at home. He didn’t need the money, but he didn’t have anything else to do with his time, so he worked part-time for Uber.
Is barista fire for you?
If you don’t like your job and you have some savings which can support at least part of your lifestyle, don’t hesitate any longer. Find a job that either makes you happy (which may pay a lot less), or is less stressful, and work fewer hours.
It’s all about freedom and happiness. You don’t have to be unhappy at a job don’t like for another 10 years. It’s better to work part-time for 15 years, be happy now, have more time off, and a lot less stress.
Are you close to barista fire? would you do it? are you the kind of person who would do this? If yes, what would you do? if not, why not?
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