Don’t Complicate Life. Just CoastFIRE. 

People overcomplicate things. We overthink things like what to say on a first date, or finding the right career, or what to watch on Netflix. What doesn’t have to be so difficult and overly complicated is how to set you and/or your family up for financial prosperity. Like, true economic flexibility and even freedom. 

If you are reading this, you probably are already familiar with FIRE, or Financial Independence/Retire Early. If you are not, welcome. Here’s the FIRE TL:DR:

Live below your means (preferably way below). Invest the difference. Keep it up until you have 25x your living expenses invested. Congrats, you’ve FIRE’d! 

Folks who decide to walk this path are a special bunch. We are the ones who actually read books, listen to podcasts and, dare I say, state that learning about personal finance is a hobby. It’s crazy. I can hardly explain it too. I get super self-conscious about wanting to opine about index funds or early retirement or a 50% savings rate to the general public. It’s why FIRE has such a cult-like following.

Meet anyone into FIRE and you can see it’s a big part of their identity. It makes sense why, it’s a lifestyle designed to own your time again. And it’s so exciting you really want everyone else to see the vision so they can enrich their lives too. Plus, there’s so many paths and milestones like:

• CoastFIRE
• BaristaFIRE
• LeanFIRE
• FIRE
• FatFIRE

The beauty of FIRE is, “look, there’s options for everyone!”. The con is also, “oh… there’s so many options?” The messaging needs to change. I’ll tell you why the path of CoastFIRE is the most realistic, marketable and simple path in the FIRE movement. CoastFIRE is something nearly everyone can do and delivers on the results one seeks on the path to FIRE. I know this because, well, I write from experience.

CoastFIRE is when you have enough money invested in retirement accounts that you could stop saving altogether and you will have the money you need to retire at your desired retirement age, thanks to the magic of compound interest. You can coast your way to retirement.

That’s pretty much it. 

“Unbiased… I mean that sounds great and all, but that doesn’t sound like I can retire early. Actually, it sounds like I still have to work? Where’s all this freedom you’re talking about?”

Stop right there, kind, generous, dare I say attractive(?), reader. That’s exactly right! CoastFIRE doesn’t mean you stop working and lay out on the beach forever, as you could with FIRE. But CoastFIRE opens the opportunity for you to do several things:

• Take advantage of your most significant wealth building tool: Time
• Once you’ve accounted for that future is taken care of, you should have the ability to have more choices in your life. Maybe that means:
  • Taking a less stressful job that might mean lower pay
  • Keep your current job and splurge a little more. Vacations, home renovations, etc.
  • Taking the leap to start a business 

If you are the type of person who’s interested in this stuff, do you really see yourself not working ever again? Even a labor of love? CoastFIRE can set you up to do work that enriches your life and pays the bills. No longer are you beholden to take the promotion that entails a 15% pay increase with 50% stress increase. CoastFIRE sets the foundation to help you make the best decisions to live the life you want. 

Or keep the job if you are some of the lucky few who love what they do. In that case, once you’ve CoastFIRE’d, live it up a little. Live your rich life: order the appetizers, go on that vacation, get the daily latte. Whatever you want, you’re the designer of your life now.

I think of CoastFIRE as the personal finance version of the 80/20 rule – you spend 20% of your time, effort and savings to yield 80% of the results, thanks to compound interest and growth.

Let’s run through an example:

Kimmy is 23 years old and starting her career out of college making $50k per year. An old, sage mentor told her it is wise to invest early and often and spoke of the wonders of CoastFIRE. 

Therefore, Kimmy said no matter what, I’m saving at least 20% of my paycheck every year. When she retires, her goal is to be a millionaire so in goes $10k per year in her company’s 401k. Her company matches 4% into her 401k, which is an extra $2,000. Free money! 

Having just graduated college, she was used to living like a student. She stayed at home for 2  years to pay off her student loans and save a 6 month emergency fund. At 25, she decided to move out with a roommate and rent an apartment. Many of her friends bought new cars and went out to hip bars. She kept her used decade old Honda Accord and would only join her friends out on nights with happy hour specials, but avoided the $200 nights out on the town. She did, however, pay cash for a two week vacation backpacking in Europe she felt was totally worth the tradeoff of a new car and weekend nightlife.

Kimmy crushed it at work too. She received merit increases, sometimes a $2,000 bonus. After 4 years she received a promotion and a 20% raise. Yet, with every pay increase and promotions, she would add to her 401k and retirement savings. Started at 20%, then 21%, then 22%, eventually getting to 30% of her income.

With diligent saving in her 20s, by 30 years old she had $100k in her 401k. She runs the numbers and finds if she doesn’t save another dime for retirement, she will have $1 million dollars by the time she is 65 years old, assuming an average 7% inflation-adjusted growth rate. Not adjusting for inflation at the 10% average of the S&P 500, it would be $2.8 million. Oh mama. 

She now has the potential (based on her risk profile) to stop saving altogether for retirement and re-evaluate what to do with the 30% she was saving before. She runs the numbers and sees, if she cuts the percent of retirement savings in half to 15%, she’ll hit $2 million by 65. She figures, let’s do that and funnel the remaining 15% into better vacations.

Now THAT is CoastFIRE. That is financial flexibility and freedom at 30 YEARS OLD. 

With Kimmy basically self-funding her own pension a la her 401k, she can design her life how she wants, knowing future Kimmy is taken care of.

Now, life happens and that was a simple (and probably best case) example. But by thinking about this early on, you free up your options in life. 

CoastFIRE is even more fun with two people. Double the savings means nearly double the speed. When you have a partner in life who you align with and shares the same dreams as you, you are almost unstoppable. 

CoastFIRE might not be for everyone, but it certainly is attainable for many people today. It’s what the modern life of abundance looks like.