Barista FIRE Calculator

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FAQ

What does FIRE mean?

FIRE stands for “Financial Independence, Retire Early.” In simple terms, it’s about saving and investing enough money so you can support yourself without needing a full-time job. Once you’ve reached financial independence, you can choose to retire early, work part-time, or do whatever else feels right to you—because you’re no longer stuck working just to pay the bills.

What is Barista FIRE?

Barista FIRE is a balanced approach to financial independence where you work part-time to cover some expenses while your investment portfolio covers the rest. Named after the Starbucks barista job (known for good benefits even for part-time workers), this strategy lets you escape the 9-to-5 grind sooner. You need less saved than traditional FIRE because your part-time income supplements your investment returns.

What is a safe withdrawal rate?

The 4% rule suggests you can safely withdraw 4% of your portfolio each year without running out of money over a 30-year retirement. This guideline emerged from the Trinity Study’s analysis of historical market data (1925-1995) using a balanced stock/bond portfolio. While your specific situation may require adjustments, this principle provides a starting point for planning your withdrawal strategy.

What annual growth of my portfolio can I expect?

Investment returns vary by strategy and risk tolerance. The S&P 500 historically yields around 10% annually, while tech-heavy portfolios like QQQ have achieved roughly 15%. Conservative portfolios with bonds typically generate 5-7%. Cryptocurrency enthusiasts like Michael Saylor project Bitcoin growth at 25% annually, based on its recent performance of 60% annual growth over four years.

Do you take into account that my spending will increase over time due to inflation?

Yes. Our calculator incorporates inflation adjustments to provide realistic projections of your future financial needs. This ensures your purchasing power remains protected as the cost of living increases over time.