Home / FIRE by age / Barista FIRE, explained
FIRE by ageBarista FIRE, explained
Barista FIRE means leaving full-time work once your portfolio can cover part of your spending, with part-time income paying the rest. Spending $50,000 a year with $25,000 of part-time pay, you need $625,000 at 4% instead of $1,250,000.
The formula
Barista FIRE number = (yearly spending − part-time income) ÷ withdrawal rate
Worked examples
| Spending a year | Part-time income | Portfolio needed at 4% | Full FIRE number |
|---|---|---|---|
| $40,000 | $15,000 | $625,000 | $1,000,000 |
| $50,000 | $25,000 | $625,000 | $1,250,000 |
| $60,000 | $30,000 | $750,000 | $1,500,000 |
| $80,000 | $40,000 | $1,000,000 | $2,000,000 |
For a household of 35 with $150,000 invested and $20,000 saved a year at 5% after inflation, barista FIRE comes at 47.8 and full FIRE at 57.5.
What makes it work
- Income you can keep up. The plan counts on the part-time pay for years; a job you would do anyway is the safest kind.
- Health insurance. Some part-time jobs include it, which is where the coffee shop name comes from. Without it, the cost belongs in your spending.
- A path to full FIRE. The portfolio keeps growing while you work part time; many barista FIRE plans stop working later.
From barista FIRE to full FIRE
While part-time pay covers the gap, the portfolio only pays its share and keeps growing. Starting at the barista number for $50,000 of spending, with 5% a year after inflation and the portfolio paying the rest each year, years until it reaches the full FIRE number of $1,250,000:
| Part-time income | Barista FIRE number | Years to full FIRE |
|---|---|---|
| $15,000 | $875,000 | 27 years |
| $25,000 | $625,000 | 41 years |
| $35,000 | $375,000 | 57 years |
The job only has to last until the portfolio catches up with the full number; after that, the part-time work is optional.
Questions people ask
What is barista FIRE vs coast FIRE?
Barista FIRE starts using the portfolio now and fills the gap with part-time pay. Coast FIRE leaves the portfolio untouched until a normal retirement age and stops new saving, while your earnings cover all your spending.
What is my barista FIRE number?
Your spending minus your part-time income, divided by your withdrawal rate. The barista FIRE calculator works it out with the age you reach it.
How much do I need to barista FIRE?
For $45,000 a year with $20,000 of part-time income, $625,000 at 4%.
Related
Coast FIRE by age and the five types of FIRE for the same household.
Sources
- William P. Bengen, "Determining Withdrawal Rates Using Historical Data", Journal of Financial Planning, October 1994.
Keep reading
- Net worth by age in 2025: what the Fed's new survey shows
Median and average net worth by age from the Federal Reserve's 2025 survey, and what changed since 2022.
- How much do you need to retire at 40?
The portfolio you need by spending level for a 50-year retirement, what it takes to save it and how to bridge to 59½.
- Can you retire at 50 with $1, $2 or $3 million?
What $1M, $2M and $3M pay each year from 50, how long each lasts at each spending level and what Social Security adds.
- Health insurance before Medicare
COBRA, the Marketplace, a spouse's plan or part-time work: the options until 65 and how they fit a retirement budget.
Last reviewed by Asier Fernández, editor, on . Educational information only, not financial advice. How we calculate