The classic FIRE movement — short for “financial independence, retire early” — has long had a reputation for extremes: save aggressively, invest diligently, and build a portfolio large enough to leave work years before traditional retirement age.
The ideas behind FIRE are often traced to the 1992 book, “Your Money or Your Life,” and were later amplified by blogs, podcasts, and online communities. At its most intense, FIRE can mean saving or investing the majority of one’s income, adding multiple income streams, taking on extra work, or delaying major life milestones such as marriage or children.
But financial independence does not have to mean a life of deprivation.
Business Insider has spoken with numerous investors who want more flexible schedules and more control over their time, but who also want to “enjoy today,” as Andy and Nicole Hill put it. For the Hills, pursuing traditional FIRE created tension at home. Eventually, they pivoted to a less extreme offshoot of the movement: Coast FIRE.
Andy Hill describes Coast FIRE as a “middle ground” strategy — a way to capture some of the benefits of financial independence, such as stepping back from a demanding corporate career, without the aggressive savings requirements of traditional FIRE.
“It works well for families, works well for couples, works well for people who aren’t multi-six-figure earners,” he said. “And I wish I had known about that a lot earlier.”
Amberly Grant fell into that category. For most of her career, she did not earn six figures. At 19, she left the small Canadian town where she grew up and spent years traveling while picking up odd jobs along the way.
“I’ve cleaned houses, walked dogs, worked in bars and restaurants. I’ve taught English in Thailand, and I’ve helped a friend with a nutrition and Pilates studio in Sydney,” Grant told BI. “I basically just traveled the world and did odd jobs, and the accumulation of all the money was about $15,000 a year on average.”
Traditional FIRE may have felt out of reach, but Coast FIRE wasn’t. Grant said she hit her Coast FIRE number in her mid-30s.
What is Coast FIRE?
Coast FIRE is one of several offshoots of the FIRE movement, alongside Lean FIRE, Fat FIRE, and Barista FIRE.
Achieving Coast FIRE means an investor has enough saved and invested that, in theory, they no longer need to contribute to retirement accounts. The money they already have invested is expected to compound over time and grow into the amount they will need by retirement.
That does not mean they stop working. It means they only need to earn enough to cover their current expenses while their portfolio continues growing in the background. For some people, that can create room to take a pay cut, change careers, work for themselves, scale back to part-time, or choose less stressful work.
To figure out a Coast FIRE number, investors generally start with a few stats: their current age, ideal retirement age, expected annual spending in retirement, current investments, expected returns, and inflation. Online calculators can help estimate how much someone needs to invest today for that money to grow into a sufficient retirement balance later.
Hill, who quit a stressful, time-intensive corporate job after reaching his $550,000 Coast FIRE number, cautions that the figure is still only an estimate.
“Nothing with investing is guaranteed,” said the family finance coach who now works about 20 hours a week on his own business, Marriage Kids and Money.
That’s why he recommends checking the math over time. Investors should account for inflation, fund expense ratios, financial advisor fees, and the difference between nominal returns and real returns. Coast FIRE is also not a binding rule. Someone who reaches it can always keep contributing to retirement accounts if their goals or life circumstances change.
Grant is doing exactly that. Technically, she only needs to work enough to cover her expenses, but she is still contributing to her nest egg because she wants the option to retire before 60.
She’s learned to accept that life is not linear.
“You might be aiming towards ‘Coast FIRE’ or ‘Fat FIRE’ or FIRE, but life will happen, and it’s OK to pivot.”
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