What is Coast FI? And Why Should You Care?
Hint: It’s all about freedom.
My wife and I have been focused on Coast FI for the past three years, but this has been something we’ve toyed with for 20 years.
We knew we wanted to escape the default life (school, work, hope to make it to retirement) and struggled to figure out how.
We were hardwired to work a 9–5 job (we didn’t know any entrepreneurs, self-employed, or self-made wealthy folks) and struggled to marry our ideas of an alternative lifestyle with that of needing money to survive.
Eventually, we stumbled upon a community of like-minded individuals — thank you World Wide Web, as well as The Art of Nonconformity and FIRE (Financial Independence, Retire Early) communities! — and figured out we could create the life we wanted with our 9–5 jobs.
What did we end up wanting?
Freedom.
Freedom to not just travel the world, but live anywhere in the world.
Freedom to choose the type of work and income we want — not just chasing the largest paycheck.
And freedom to spend time where, with whom, and when we want (family, gap years, projects, hobbies, and passions).
Fast forward a decade and we’re now smack middle into our plan!
What is Coast FI?
Coast FI is an offshoot of the FIRE movement.
While some high-earners or super-savers can put away 80% of their income and reach full retirement early, this isn’t possible (or not ideal) for many of us.
And from that cringe feeling, Coast FI was born.
Coast FI Definition:
Save enough money in your retirement accounts, where you can “coast” to retirement. You no longer focus on saving more money, but instead earn only enough to cover your living expenses.
The front-loading of investments allows you to:
- Take advantage of compounding interest on your investments.
- Scale back your income (ie the stress of chasing the paycheck).
- Fully retire at a “normal” retirement age.
That sounds like a lifestyle I can get behind!
Why Should You Care?
Creating a life you want (and not settling) is possible.
Freedom — of time, money, and location — is realistic, if you know it's possible, create a plan, and keep moving forward.
If you’re like me, you probably heard about the FIRE movement and it turned you off immediately.
Hey, I love new technology, traveling, and eating great food!
And I don’t want to sacrifice living now for a future that might not happen.
But I encourage you to be curious about Coast FI.
Best case: You enjoy your life now, create alternative lifestyles based on your interests and passions, and still fully retire in the future.
Worst case: You challenged the status quo, learned that there are alternative lifestyles to explore, and you’re financially closer to full retirement.
Sounds like a win/win to me!
Be Curious and Chase Coast FI.
So if you’re chasing:
- Financial flexibility.
- An alternative lifestyle.
- Time with your loved ones.
- A break from the default life.
Then give Coast FI a bit of your time and see where it takes you.
About the Author
Hi! I’m Q, and this is The FI Adventure. I’m chasing Coast FI and freedom from my 9–5 — and I have two years left.