FIRE financial freedom out of reach? Try this trick!

When the two girls looked at FIRE's financial freedom, they focused more on "Financial Independence" so that they could decide whether to "retire early". That said, we don't think that financial freedom in FIRE means not working at all, but we also don't want to sacrifice all of our time for a job that's purely making money to support ourselves.

Many articles discussing FIRE financial freedom will divide FIRE financial freedom into Regular FIRE (standard FIRE), Lean FIRE (minimalist FIRE), Barista FIRE (part-time FIRE), Coast FIRE (high-paying FIRE), Fat FIRE (luxury FIRE) There are five types, and the latter four are based on the needs of different FIRE families and are derived from Regular FIRE (standard FIRE).

Lean FIRE (Minimal FIRE) is to live a more frugal and materialistic life than Regular FIRE (Standard FIRE), so as to lower the pension threshold. The stronger your willpower to implement a minimalist life, the higher the possibility of achieving Lean FIRE (minimalist FIRE). It is not easy for ordinary people to greatly restrain material desires for a long time.

Fat FIRE (luxury FIRE) is to live a more comfortable and wealthy life than Regular FIRE (standard FIRE), so the pension threshold must be raised. To be honest, people who can execute Fat FIRE (luxury FIRE) are not ordinary office workers, and it is difficult for even ordinary management to do so.

Coast FIRE: Get FIRE's FastPass for Wealth Freedom in the first ten to fifteen years of your career!

Coast FIRE, if the literal translation in English is coast/skating FIRE, here it is called high-paying FIRE, because it pursues the 20 to 30-year-old stage, and has saved enough principal to a retirement account, plus time compound interest , enough to cover future retirement benefits, this retirement account will not be drawn until retirement. This means that you have to have a high-paying job and be very disciplined about a high savings rate for the first ten to fifteen years of your career.

The advantage of Coast FIRE is that after saving the necessary principal in the retirement account, with the help of time compound interest, you do not need to earn extra money to save for retirement, so you have more choices for your next life. Before you really retire, as long as your work income can cover your daily expenses, you don’t have to worry about pensions. In this case, whether you want to do easy or challenging work, or even want to engage in a different career, there are more autonomy.

Coast FIRE actually concentrates all the pressure on retirement savings in the first ten to fifteen years of your career, so that you can get higher time compound interest and gain more free time for your life. However, Coast FIRE does require high-paying active income to support, Barista FIRE (part-time FIRE), may be more applicable to the average person.

Barista FIRE: FIRE Wealth Freedom in the Long Run

Barista FIRE is often referred to as Starbucks FIRE abroad, because Starbucks part-time baristas have part-time wages and medical insurance to maintain their daily needs.

Barista FIRE and Coast FIRE look alike at first glance, and our interpretation of it is that Barista FIRE does not require the principal required to be deposited into a retirement account during the first ten to fifteen years of a career. In contrast, Barista FIRE is People who have worked for 20 to 30 years have gradually accumulated the principal of their retirement accounts. They are tired of their original 9-5 work and want to (have) retired from the workplace. At this time, they choose to supplement it with part-time jobs. Living expenses after own early retirement.

From a financial point of view, Barista FIRE can allow employers to pay part of their medical insurance for themselves through a part-time job, and they can also continue to have income, which can lower the threshold for retirement accounts. From a social point of view, part-time work can maintain one's interaction with the society, and may also use it to develop one's interests.

Choose the type of FIRE financial freedom that suits you

Regular FIRE (standard FIRE), Lean FIRE (minimalist FIRE), Barista FIRE (part-time FIRE), Coast FIRE (high-paying FIRE), Fat FIRE (luxury FIRE) and other five types of FIRE financial freedom, suitable for different FIRE families; you You can also adjust your FIRE method according to your life stage in each period.

Focus on:

FIRE financial freedom out of reach? Try this trick!

1. Barista FIRE: After working for 20 or 30 years and saving a pension, use a part-time job to support daily expenses. Suitable for general office workers.

2. Coast FIRE: In the first ten to fifteen years of your career, save enough for a pension, plus time compound interest. Suitable for high earners and young people.

3. Lean FIRE: It is more minimalist than Regular FIRE to lower the pension threshold. Suitable for people with very low material desire or limited income.