Barista FIRE
Part-time work, full-time freedom
Portfolio covers most expenses · Part-time work fills the gap
Barista FIRE sits between full employment and complete early retirement — you build a portfolio large enough to cover most expenses, then supplement with enjoyable, flexible work. You leave your stressful career, but stay engaged and earn just enough to bridge the gap.
How Barista FIRE Works
Barista FIRE lets you reach financial semi-independence earlier than full FIRE by reducing the portfolio size needed. Your part-time income covers the gap between your portfolio's 4% withdrawal and your actual expenses.
Barista FIRE Formula
Annual expenses: $60,000
Part-time income: $20,000/yr
Portfolio must cover: $40,000
Barista FIRE Number: $40K ÷ 0.04 = $1,000,000
vs. Full FIRE: $60K ÷ 0.04 = $1,500,000
You can retire 5-8 years earlier!
What Part-Time Work Fits Barista FIRE?
Pros & Cons
Advantages
- Achievable years before full FIRE
- Maintain social engagement and structure
- Employer benefits (especially healthcare)
- Buffer against sequence-of-returns risk
- Psychological ease of gradual transition
Disadvantages
- Still technically working (even if you enjoy it)
- Part-time income may not always be available
- May feel like "not really retired" to some
- Requires finding genuinely enjoyable work
- Income may be inconsistent
Frequently Asked Questions
What is Barista FIRE?
Barista FIRE is a semi-retirement strategy where you build an investment portfolio large enough to cover most of your expenses, then supplement the rest with enjoyable part-time work. The name comes from the Starbucks "barista" — a part-time job that offers health benefits.
Why is it called "Barista" FIRE?
The name originally referred to the Starbucks employee benefit of health insurance for part-time workers (20+ hours/week). Early retirees could work part-time as baristas to access healthcare while their portfolio covered most living expenses.
How much do I need for Barista FIRE?
It depends on how much your part-time income covers. If you earn $20K/year part-time and spend $50K/year, you need your portfolio to cover $30K/year: $30K ÷ 0.04 = $750,000 portfolio. The higher your part-time income, the less portfolio you need.
Is Barista FIRE the same as semi-retirement?
Yes, essentially. Barista FIRE is a form of semi-retirement where you deliberately choose work you enjoy (rather than work you need financially). The key difference from traditional work: you work because you want to, not because you have to.
Calculate Your Barista FIRE Number
Use our calculator to see how soon you could achieve Barista FIRE.
Open FIRE Calculator