How it works
While you work full-time, your portfolio grows at the real return plus your yearly saving. Once it reaches the Barista number (the spending gap divided by your withdrawal rate) you switch to part-time. From then on you withdraw only the gap. If the portfolio keeps growing faster than you draw from it, it eventually reaches your full FIRE number and the part-time job becomes optional.
Even a modest part-time income has a big effect: every $10,000 a year of earnings cuts $250,000 from the portfolio you need at a 4% withdrawal rate.
Compare with full FIRE or with Coast FIRE, where you stop saving but keep working to cover today's costs.
Questions people ask
What is Barista FIRE?
Barista FIRE means leaving full-time work once your investments can cover part of your spending, and earning the rest from part-time or lower-stress work. The name comes from the idea of working part-time at a coffee shop, often partly for health insurance.
How do I calculate my Barista FIRE number?
Subtract your expected part-time income from your yearly spending, then divide the gap by your withdrawal rate. Spending $50,000 with $20,000 of part-time income leaves a $30,000 gap, which needs $750,000 at 4%, compared with $1.25 million for full FIRE.
How long do I need to keep working part-time?
Until your portfolio can cover everything, or until Social Security or a pension begins. The calculator shows when your portfolio, still growing, would reach full FIRE if you only withdraw the gap.
What about health insurance?
In the US, health cover before Medicare at 65 is one of the biggest Barista FIRE costs. Some part-time employers offer benefits; otherwise, ACA marketplace plans with income-based subsidies are common. Include premiums in your spending.