The Sprint to FI

BaristaFI

What is BaristaFI?

BaristaFI is that point where your passive income can provide most of your basic needs with only a part time job required to feed yourself and pay your incidental bills.

For me, BaristaFI is also a position of security. Its not exactly Fuck You money as you should already have that if you are close to BaristaFI. Rather, it means that if anything happens to your employment, you can at the very least cover rent. That for me is BaristaFi. This is different from other definitions of BaristaFI.

In our case, we are pegging Barista FI as our passive income able to pay our rent. Our other bills could be paid from low stress, lower paid jobs or even part time work. Currently our rent is about $2k per month including some utilities. This makes our BaristaFI number about $600k. If we did this, our joint income would need to be at about $1300 per month; our expenses without the rent.

At the time of writing, we are at $550k so we only need to increase our assets by $50k to reach this goal. However if something catastrophic happened right now we could shed more of our stuff and relocate to a lower cost apartment. In our area there are lower cost 2 bedroom apartments at about $1600/month. To generate $1600 per month at 4% SWR, we would need to have $480k and we are past that.

While neither of us plan to give up our day jobs, it’s nice to know that we could. We would of course still need income but that could be achieved through a much smaller single salary. This is a level of security that the journey to FI affords us.

Cat and I talked about this milestone recently. We both agreed that we appreciate the feeling of security that we have, knowing that if a catastrophe were to happen we could at least pay our rent. We do not intend to pull that trigger however and will just keep working. Cat’s target is to have enough in her combined assets to retire at 60. That is exactly three years from this time. I think we can keep going for another three years!

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