How Much Money You Need To Become Barista F.I.R.E

Barista F.I.R.E is essentially choosing to still work while living partially off of your investments. It is not a full retirement, yet it is not full employment either. Generally speaking, Barista F.I.R.E consists of working part-time, having a semi-passive business, investing in real estate, working seasonally, or something else that doesn't fit into the full-time job category. You can usually achieve Barista FIRE much faster than traditional financial independence, and enjoy much more life satisfaction because you can do meaningful work and/or low-stress work. This video seeks to give you a guideline for how much wealth you need to achieve Barista FIRE.
Wanna know why Barista FIRE is the best type of FI? Then watch this video!
• Barista FIRE Is The Be...
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#BaristaFIRE #BaristaFI #FinancialIndependenceRetireEarly
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[@OnCashFlow]

Wanna know why Barista FIRE is the best type of FI? Then watch this video! kzbin.info/www/bejne/iZWciKufo6iba9E

[@QuesttoFIRE]

Ultimately I want regular FI. But, barista FI is a smart option if my body can’t physically handle my regular job anymore at some point in the future.

[@OnCashFlow]

hmm... It is also possible to be barista FI while having such a low withdrawal rate that ends up allowing your investments to still grow to a point that makes you regular FI.

[@OnmywaytoFI]

My goal is to barista FI in 5-10 years. At 41 we are investing heavily into brokerage accounts and traditional retirement. Been fortunate to have good paying jobs and low cost of living. Keep up the great content!

[@OnCashFlow]

thanks and good luck on your journey!

[@susanlewis1953]

Barista fire - combination of a defined benefit pension, part time work and investment withdrawal. Want to escape the 9-5! Thanks Sue

[@OnCashFlow]

those three income sources would make a solid plan!

[@mikeham5465]

Thanks for the great info zach

[@OnCashFlow]

My pleasure!

[@TheCelmap]

I've reached barista FIRE and will hit regular FIRE by the end of next year. However, won't quit my 9-5 since still like it but, will take more unpaid time off and enjoy more my paycheck since it's a good amount.

[@OnCashFlow]

That's awesome that you CAN take unpaid time off!

[@therosalesrodeo6430]

I know myself. Attempting to be a SAHM twice, I REALLY like working, especially only part time. I‘ve said for forever my dream job would be part time at a library or a forest preserve, you know, checking people in to go camping. I love how my goals have changed in life, but my goals are to be able to super comfortably be able to do just that.

[@OnCashFlow]

The great thing is that this is a very achievable goal, I know you can do just that!

[@maciejcharyga8349]

Do you have a barista fire job? I retired earlier this year and have been trying new jobs. So great meeting new people, and it covers the variable expenses. Barista fire gets rid of sequence of returns risk early on, so your probability of running out of money is pretty much 0. Love the channel nice video.

[@OnCashFlow]

Thank you! At the moment, YT is my barista FI job ;) I have a few other part-time job options that I have always wanted to try out. substitute teacher, Tax preparer, poll worker, etc. to name a few.

[@dforrest4503]

@@OnCashFlow as a full-time teacher, I can say it’s rough to be a substitute teacher. Low pay and students don’t have much respect these days. Certainly try it out, but I’ll be interested in your thoughts if you do.

[@OnCashFlow]

@@dforrest4503 In College I worked PT as a teacher aide in special education so I have a good idea what it's like. I have my degree now so I can get the permit easily If I wanted to try it out.

[@philipjabra5185]

Hi Zach. I have a question on VSP hedging. If I had US cash on hand and I converted to Canadian dollars at 1.31 and purchased VSP and hedged. Is that a good idea, as I got the most bang for my Canadian dollar? Or should I have purchased VFV?

[@OnCashFlow]

I don't have much experience and knowledge with currency hedging, so I can't really say which would be better. I personally would go with the simpler option with lower fees.

[@philipjabra5185]

​@@OnCashFlow Thank you :)

[@OnCashFlow]

@@philipjabra5185 of course! :)

[@alisonburgess345]

How do you see housing security fit into this Zach? Wouldn't it be better to have a paid for dwelling before quitting work?

[@MRkriegs]

It's always better to pay ur residence off before quitting work permanently

[@OnCashFlow]

it depends. I think it is a really good defensive move to make because it reduces your fixed expenses somewhat dramatically, but certainly is not required. for most of us, I think it is a good idea, even if it's not the most mathematically optimal decision.

[@catcat7835]

IMHO if you have mortgage, then no investments should be made other than paying the loan firsthand and only then investing. Take a look at the mortgage fixed rates and on the real average yields from the stock market for last 150 years...

[@OnCashFlow]

Current rates are much higher than they have been over the past decades, but inflation will still make a fixed monthly payment become "smaller" over time.

[@lahawtho]

I’m open to barista FI. Wouldn’t mind running my own skilled trades business like electrical or carpentry work. Marketing my skills towards home renovations. But I’m ok with continuing to be an engineer for now….

[@OnCashFlow]

for sure, sounds like RE investing could be a good fit for you too!

[@JosephDickson]

At some point a person needs to transition from Barista FI to Traditional FI when they can't work to make up the difference. I presume Social Security and Medicare but that may not be certain.

[@OnCashFlow]

realistically it probably isn't going anywhere besides maybe having reform eventually that could reduce future benefits and increase future taxes

[@carlosfernandezea]

very smart man. financial advisors sell dogshit.

[@OnCashFlow]

thanks I appreciate the comment. unfortunately that is sometimes true about FA.

[@frankalias7516]

I don’t like Barista. Don’t like to show up at a job at a permitted time. Prefer working some additional years to reach Fire.

[@OnCashFlow]

true, there's also self employment ;)