What is Barista FIRE? Quit Your Career, Work Part-Time (Guide)
Escape the 9-5 without fully retiring. Barista FIRE lets you work on your terms while your investments do the heavy lifting.
TL;DR
Barista FIRE means saving enough to quit your demanding career and switch to enjoyable part-time work. Your investments cover part of your expenses, while your part-time income handles the rest. You need less saved than traditional FIRE because you keep earning - just on your own terms.
What is Barista FIRE?
Barista FIRE is a variation of the FIRE (Financial Independence, Retire Early) movement where you achieve partial financial independence - enough to leave your high-stress career but not enough to stop working entirely.
Instead of saving 25-30x your annual expenses for full FIRE, you save enough so that a combination of investment withdrawals and part-time income covers your lifestyle.
BARISTA FIRE IN ONE SENTENCE
Quit the rat race, keep working part-time, let your investments cover the gap.
The key insight: you do not need millions saved if you are willing to earn some income. Even $15,000-25,000/year from enjoyable work dramatically reduces how much you need invested.
Why Is It Called Barista FIRE?
The name comes from Starbucks, which offers health insurance to part-time employees working 20+ hours per week. In the United States, health insurance is one of the biggest concerns for early retirees.
Without employer coverage, a couple in their 50s might pay $20,000-30,000/year for health insurance on the open market. But a part-time job at Starbucks (or similar companies) can provide health benefits at a fraction of that cost. See our early retirement health insurance guide for a complete breakdown of your options.
Companies offering part-time health benefits:
- Starbucks (20+ hours/week)
- Costco (20+ hours/week)
- UPS (part-time after 1 year)
- REI (20+ hours/week)
- Whole Foods (20+ hours/week)
Of course, you do not have to work at Starbucks. The term "Barista FIRE" now refers to any semi-retirement strategy combining investments with part-time work - whether that is barista work, consulting, freelancing, or anything else.
The Barista FIRE Formula
The formula is straightforward: calculate the gap between your expenses and your expected part-time income, then multiply by 25 (the standard 4% rule multiple).
BARISTA FIRE NUMBER
(Annual Expenses - Part-Time Income) × 25
Example calculation:
- Annual expenses: $50,000
- Expected part-time income: $20,000
- Gap to cover from investments: $30,000
- Barista FIRE number: $30,000 × 25 = $750,000
Compare to full FIRE: $50,000 × 25 = $1,250,000. Barista FIRE saves you $500,000.
Calculate your Barista FIRE number
See exactly when you can make the switch to part-time work.
Barista FIRE CalculatorReal Examples
Example 1: The frugal couple
- Annual spending: $40,000
- One partner works part-time: $15,000/year
- Gap: $25,000 → Barista FIRE number: $625,000
Example 2: The consultant
- Annual spending: $60,000
- Part-time consulting (10 hrs/week): $30,000/year
- Gap: $30,000 → Barista FIRE number: $750,000
Example 3: The lifestyle designer
- Annual spending: $70,000
- Blog/creative income: $20,000/year
- Gap: $50,000 → Barista FIRE number: $1,250,000
Barista FIRE vs Coast FIRE
These are the two most popular "partial FIRE" strategies. Both let you escape the high-income grind, but they work differently:
| Factor | Barista FIRE | Coast FIRE |
|---|---|---|
| Investment withdrawals | Yes - withdraw to cover gap | No - let investments grow |
| Work covers | Part of expenses | All current expenses |
| Timeline | Semi-retire sooner | Full retire at traditional age |
| Savings needed | ~$500k-$1M typically | ~$200k-$500k typically |
| Best for | Those who want to work less now | Those who want to stop saving now |
Which is right for you? If you want to dramatically reduce your work hours now and do not mind working part-time indefinitely, choose Barista FIRE. If you want to stop mandatory saving but keep working until traditional retirement, choose Coast FIRE.
Many people combine both: use Coast FIRE principles (let investments compound) while also working part-time (Barista FIRE style) for extra flexibility.
Pros and Cons of Barista FIRE
+ Pros
- Escape the rat race sooner
- Need less saved than full FIRE
- Part-time income provides safety net
- Health insurance through employer
- Social connection from work
- Flexibility to adjust income as needed
- Cons
- Still have to work (not full FIRE)
- Part-time income can be unstable
- Sequence of returns risk
- May struggle to find good part-time work
- Healthcare depends on employment
- Less time freedom than full FIRE
Best Jobs for Barista FIRE
The ideal Barista FIRE job has three qualities: flexibility, low stress, and ideally health benefits. Here are popular options:
Jobs with health benefits
- Starbucks, Costco, REI, Whole Foods (20+ hours/week)
- UPS package handler (part-time after 1 year)
- Substitute teaching (varies by district)
- Adjunct professor positions
Flexible freelance work
- Consulting in your previous field (10-15 hours/week)
- Freelance writing, design, or development
- Tutoring or teaching online
- Real estate photography
Seasonal or project-based
- Tax preparation (January-April)
- Holiday retail (November-December)
- Summer camp counselor
- National park seasonal work
Passion-based income
- Yoga/fitness instructor
- Music lessons
- Tour guide
- Blog or YouTube (longer ramp-up)
Is Barista FIRE Right for You?
Barista FIRE might be right if:
- You are burned out on your current career
- You would enjoy part-time or flexible work
- You value time freedom over maximum wealth
- You can find part-time work with health benefits
- You want to escape the 9-5 sooner rather than later
Consider other options if:
- You want complete work freedom (full FIRE)
- You actually enjoy your high-paying job
- Part-time work would feel like a downgrade
- You are close to full FIRE anyway
- Healthcare outside employment is accessible
Find your Barista FIRE number
Calculate when you can make the switch to part-time work.
Use Barista FIRE CalculatorWant a broader picture of your FIRE readiness? Take our FIRE Readiness Quiz to assess your savings, investments, debt, and more in 2 minutes.
Frequently Asked Questions
What is Barista FIRE?
Barista FIRE is a financial independence strategy where you save enough to quit your high-stress career and work a part-time or low-stress job instead. Your investments cover part of your expenses, while your part-time income handles the rest.
Why is it called Barista FIRE?
The name comes from Starbucks, which famously offers health insurance to part-time employees (20+ hours/week). For early retirees in the US, getting affordable health insurance is a major concern, making jobs with part-time benefits attractive.
How much do you need for Barista FIRE?
The formula is: (Annual Expenses - Part-Time Income) × 25. For example, if you spend $50,000/year and earn $20,000 part-time, you need $750,000. Most people need between $400,000 and $1,000,000.
What is the difference between Barista FIRE and Coast FIRE?
With Barista FIRE, you withdraw from investments while working part-time. With Coast FIRE, you let investments grow untouched while working to cover all current expenses. Barista FIRE lets you semi-retire sooner; Coast FIRE requires less savings upfront.
Is Barista FIRE worth it?
It depends on your priorities. If you hate your current job and want freedom sooner, Barista FIRE can be life-changing. If you enjoy your career or want complete financial independence, you might prefer traditional FIRE.