Coast FIRE Calculator: Dual Income
Planning for Coast FIRE as a dual-income household comes with unique considerations that generic calculators often miss. Your situation affects everything from your FI number (we've pre-filled a typical estimate of $60k/year in expenses) to your realistic savings capacity ($2000/month is common for this scenario). Our calculator lets you adjust these defaults to match your specific reality.
Why This Matters
Dual-income households are positioned for potentially the fastest path to Coast FIRE. The most powerful strategy: live on one income and invest the other entirely. If you can maintain a lifestyle that one salary supports, you could reach Coast FIRE in just a few years. Max out both 401ks ($46,000 total) plus IRAs ($14,000 total) for $60,000 in tax-advantaged savings before touching taxable accounts. The security of two incomes also means you can take more investment risk or have one spouse pursue higher-risk, higher-reward career moves.
Key Considerations for Your Situation
The most powerful strategy: live on one income and invest the other entirely. If you can maintain a lifestyle that one salary supports, you could reach Coast FIRE in just a few years. This requires buy-in from both partners but creates an extraordinary acceleration.
Max out both 401ks if possible for $46,000+ in tax-advantaged savings. Add both IRAs ($14,000) for $60,000 before touching taxable accounts. If both employers offer HSAs, that's potentially another $8,300. Very few other situations offer this much tax-advantaged space.
The security of two incomes means you can take more risk elsewhere. One spouse might pursue entrepreneurship, negotiate more aggressively, or take career chances that a single-income household couldn't afford. Use this advantage strategically.
Be intentional about whose career gets prioritized. Many dual-income couples accidentally hold both careers back by trying to optimize both. Consider whether having one spouse accelerate while the other provides stability might actually reach your goals faster.
Dual-Income Power Strategies
"Live on one income" is the ultimate accelerator: if you can maintain a lifestyle that one salary supports, investing the other can reach Coast FIRE in 3-5 years.
Combined tax-advantaged space is massive: two 401ks ($46k), two IRAs ($14k), possibly two HSAs ($8.3k family). That's $68k+ in tax-advantaged savings before taxable accounts.
Job loss risk is halved: with two incomes, losing one job is a setback, not a crisis. This security enables more aggressive Coast FIRE strategies.
Optimize health insurance: compare both employer plans annually. One may cover the family better or cheaper. HSA eligibility is valuable if either employer offers a qualifying HDHP.
Healthcare for Dual-Income Households
Compare both employer plans annually: coverage quality, premiums, HSA eligibility, and out-of-pocket maximums vary significantly. The "obvious" choice isn't always best.
One spouse leaving for Coast FIRE? The remaining spouse's employer coverage continues. This flexibility is a major advantage of dual-income households.
Maximize HSA contributions while both are employed with HDHP access. Build a large HSA balance before anyone leaves the workforce.
Consider which spouse has better coverage for Coast FIRE planning. The spouse with inferior benefits might be the first to "coast" while maintaining coverage through the other.
Healthcare costs vary significantly by state, age, and family size. Factor in premium subsidies, deductibles, and out-of-pocket maximums when planning your Coast FIRE budget.
The Psychology of Dual-Income Coast FIRE
Lifestyle inflation is the enemy: two incomes make nice things feel affordable. But two $80k earners spending like one $160k household will never reach Coast FIRE.
"Live on one income" sounds simple but requires constant discipline: every purchase is a choice between one lifestyle and another. Make the choice consciously.
Comparison to single-income friends is misleading: they may have more time but less savings. You have different trade-offs, not better or worse ones.
Exit strategy coordination: who coasts first? Deciding which spouse leaves the workforce first requires discussing careers, stress levels, benefits, and personal preferences.
How Coast FIRE Works
Compound Growth
Your investments grow exponentially over time. Einstein called compound interest the 8th wonder of the world.
The Coast Strategy
Once you hit your Coast number, you never need to save for retirement again. Work for passion, not survival.
Freedom Date
Discover when you can switch to part-time work or pursue your dreams without financial anxiety.
Frequently Asked Questions
Can I achieve Coast FIRE as a dual-income household?
Yes - Coast FIRE is achievable in any situation with the right strategy. Dual Income households have unique challenges, but many people in your exact situation have reached financial independence. The path may look different (different timeline, different strategies, different FI number), but the destination is the same. Our calculator helps you plan around the specific factors that affect your situation.
What's a realistic savings rate as a dual-income household?
We've pre-filled $2000/month based on typical dual income situations, but this varies widely. Generally, aim for 15-25% of your income if possible, adjusting for your specific circumstances. Some months you may save more, some less - consistency over time matters more than hitting an exact percentage every month. Use our calculator to see how different savings rates affect your timeline.
How much should I budget for annual expenses as a dual-income household?
We've estimated $60k/year for dual income households, which is typical for this situation. This number directly determines your FI number (Annual Expenses ÷ 0.04 = FI Number). The lower your spending, the lower your Coast FIRE target. Track your actual spending for a few months to get a realistic number - many people are surprised (in either direction) by their true expenses.
What's the best Coast FIRE strategy as a dual-income household?
The fundamentals remain the same regardless of situation: 1) Maximize the gap between income and expenses, 2) Invest consistently in low-cost index funds, 3) Take full advantage of available tax-advantaged accounts, and 4) Stay the course through market volatility. What differs as a dual-income household are the specific tactics - which accounts to prioritize, how much emergency fund to keep, what risks you can take, and what timeline is realistic.
Your Next Steps
Model the "live on one income" scenario to see how fast you could reach Coast FIRE.
Verify you're maximizing all available retirement accounts across both employers.
Discuss whether one career should be prioritized for faster overall household progress.
Consider how the security of two incomes enables different career risk-taking.
Related Tools & Resources
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Use Calculator NowSources
- [1]Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable(1998)
- [2]Determining Withdrawal Rates Using Historical Data(1994)
- [3]Historical Returns on Stocks, Bonds and Bills
- [4]Bureau of Labor Statistics Occupational Outlook
- [5]Safe Withdrawal Rate Series
- [6]Healthcare.gov Marketplace
- [7]TSP.gov - Thrift Savings Plan
- [8]IRS Publication 571