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Barista FIRE: Everything You Need To Know (With Calculator)

  • Reading time:10 mins read

BaristaFIRE is one of several Financial Independence Retire Early (FIRE) types.  Barista FIRE is defined as having enough money to retire early while using a part-time job for additional income and health insurance.

Let’s explore BaristaFIRE as an alternative route to regular Financial Independence Retire Early (FIRE) and see if it’s right for you.


What is Barista FIRE?

Barista FIRE is when you aim to retire early with enough money invested that the 4% rule covers a part of your yearly expenses.

You would then switch to a part-time job to provide you with health insurance and cover the additional expenses.

Barista FIRE got its name because Starbucks offers healthcare for its part-time employees.

So, many people saw that as an opportunity to switch to a part-time role while still keeping their health insurance.

This type of FIRE appeals to many people because you don’t have to save as much money.

BaristaFIRE allows you to switch to a part-time job much earlier and not wait until you have accumulated 25 times your yearly expenses.


How Barista FIRE Works

Barista FIRE works by saving enough money to cover a part of your yearly expenses but not all of it.

If you are pursuing traditional FIRE and you have yearly expenses of $40,000/year, you would have to save $1 million.

This is based on calculating your Traditional FIRE Number:

FIRE Number = 25 x (Yearly Expenses)

However, for BaristaFIRE, you wouldn’t have to wait until you reach $1 million.

You can save $250,000, giving you $10,000/year based on the 4% rule.

Then find a part-time job that pays $30,000/year to cover the remaining expenses and gives you health insurance. 

Ideally, this part-time job would be one you enjoy and lead to a happier lifestyle.

One where you work less and have more time for family, friends, and adventures.

That is the appeal of BaristaFIRE.


Calculate Your Barista FIRE Number

You can use a regular FIRE calculator to calculate your Barista FIRE number.

My FIRE calculator shows your progress year by year, so you can easily find your Barista FIRE number.

This makes it a Barista FIRE Calculator as well.

JL Collins FIRE Calculator

Calculate Your Barista FIRE Number With My Free Barista FIRE Calculator


How To Find Your Barista FIRE Number:

  1. Input Yearly Expenses
  2. Calculate FIRE Number
  3. Estimate Salary From Part-Time (PT) Job
  4. Subtract (Yearly Expenses – PT Salary)
  5. Barista FIRE Number = 25 x (Supplemental Income Needed)


Since the FIRE calculator shows your progress, you can quickly identify how long it will take you to reach your BaristaFIRE amount.

It should be much faster than regular FIRE, but it will depend on your part-time job salary.

I use Personal Capital to track my expenses first. (Get a $20 Amazon Gift Card with this link when you add at least one investment account containing a balance of more than $1,000 within 30 days)

After that, you can accurately calculate your Barista FIRE number.

Here is an example using the scenario from above:

Barista FIRE Calculation

Annual Expenses = $40,000, Part-Time Job Salary = $30,000

FIRE Number = 25 x (Yearly Expenses)

$1 Million = 25 x ($40,000)

Therefore, using my FIRE Calculator, it would take 16 years to achieve Traditional FIRE.  

However, that same person would reach BaristaFIRE in 6 years.

That is a full 10 years before Traditional FIRE.

Barista FIRE Number = 25 x (Supplemental Income Needed)

$250,000 = 25 x ($40,000 – $30,000)


 Benefits of Barista FIRE

  • Freedom To Switch Jobs
  • Health Insurance For You & Your Family
  • Keeps You Engaged 

BaristaFIRE allows you to switch to another job or part-time work much quicker than traditional FIRE.

If you are miserable at work, pursuing BaristaFIRE can help you live a happier lifestyle much sooner.

BaristaFIRE also takes care of an Achilles heel issue for the FIRE movement, healthcare.

It’s no secret that healthcare is expensive, and factoring in health insurance premium costs can further delay financial independence.  

By working part-time for a company that offers health insurance to part-time employees, you can pass on health insurance costs to your employer.

Lastly, by staying in the workforce, BaristaFIRE appeals to those who don’t want a fully retired lifestyle.

Perhaps, you enjoy working at your job, just not for 40 hours a week.

It’s also possible you could get bored shortly after your early retirement.

If switching to part-time appeals more to you than completely retiring, then BaristaFIRE might be the right FIRE path.

In this case, you should strongly consider BaristaFIRE.  

The good news is that you can always change your mind later and pursue traditional FIRE.

Regardless, it’s essential to consider this early on in your journey and adjust as needed.  


Different Types Of FIRE

The Financial Independence Retire Early (FIRE) movement is growing and has many FIRE types.

Here are the different types of FIRE in order from easiest to hardest to achieve: 

  • Coast FIRE (CoastFIRE) is accumulating enough money to stop contributing and still reach FIRE in the future
  • Barista FIRE (BaristaFIRE) is enough money to retire early while working a part-time job for additional income and health insurance.
  • Lean FIRE (LeanFIRE) is the minimalist way of reaching FIRE and means retiring with a “lean” budget.
  • Traditional FIRE is accumulating 25 times your annual expenses and retiring early using the 4% rule.
  • Fat FIRE (FatFIRE) is early retirement without embracing frugality and choosing to accumulate a bigger nest egg.

Each type of FIRE has pros and cons and comes down to balancing money and work.

These options for FIRE allow us to pursue the type that best matches our lifestyle goals.

I created a helpful illustration to help you remember the different types of FIRE:

5 Types Of FIRE


Negatives of Barista FIRE

A clear negative of Barista FIRE is the need to continue working and depending on an employer for income.

BaristaFIRE is not for those who do not want to answer to anyone or want to design a self-reliant lifestyle.

BaristaFIRE also depends on sticking to a budget and embracing some form of frugality.

If you prefer to live budget-free or anticipate increased expenses in the future, BaristaFIRE might not be the best option.


Best Jobs For Barista FIRE

The inception of “Barista” FIRE came from the idea of working at Starbucks because they offered corporate health coverage for part-time employees.

Yet, the best Barista FIRE jobs rarely involve working at a coffee shop.

Starbucks might have given Barista FIRE its name, but it isn’t the only place providing part-time workers health insurance.

Here are some companies that offer health insurance to part-time employees:

  • Starbucks
  • Whole Foods
  • United States Parcel (UPS)
  • Costco
  • Lowe’s
  • Staples

However, the best job for Barista FIRE is any part-time job you enjoy doing that covers your expenses and gives you health insurance.

So if you enjoy your current job, then the best BaristaFIRE job might be the one you already have!

Achieving BaristaFIRE by switching from full-time to part-time might be the best option.

You can still enjoy the same lifestyle and health insurance and declare you’ve reached Barista FIRE.

If you love this concept, you might be interested in reading The 4 Types Of Wealth, which explains how wealth is more than money in the bank.


This post may have affiliate links, which means I may receive commissions if you choose to purchase through links I provide (at no extra cost to you). Thank you for supporting the work I put into this site!

This information is my opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.