CoastFI

Welcome to episode 5 of The Coast FI Podcast, where we'll explore the different options you have once you hit your Coast FI number. In other words, what changes should you make, if any? There are three distinct paths available to you when you reach Coast FI, and we'll discuss each one in detail. We'll begin with the path of least resistance: just keep doing what you're doing. For some, this is an ideal option since it allows you to accumulate even more wealth and reach financial independence sooner. However, it's critical to consider whether this option is a good fit for you both personally and professionally. The second option is to downshift your work and enjoy more flexibility sooner. You can reduce your hours or find a job that is more fulfilling, even if it pays less. Downsizing your work can provide more control over your time, even if you haven't achieved full FI yet. The third and final option is to repurpose your savings while continuing to work and earn the same amount. You could use the extra money to live a more lavish lifestyle, support important causes or set the next generation up for financial success. It's essential to consider each of these options carefully and determine what is best for you in achieving your goals. In the end, it's possible that you can do everything you want and more while coasting to financial independence. So there you have it, our discussion on the three different paths you can take once you've reached Coast FI. Thank you for listening to The Coast FI Podcast, and we hope you gain inspiration and motivation towards achieving financial independence! Links:  Intentional Wealth: How Families Build Legacies of Stewardship and Financial Health What is Coast FI: Understanding The Pros and Cons of This FIRE Alternative

At some point on your journey to FIRE you'll cross your Coast FI milestone. That's the point where if you never saved another dime, you'd still reach financial independence in the future. In other words, saving is optional, and you're free to work flexibly while building a lifestyle you love. But why would someone hop off the fast track to FIRE in exchange for the slow and steady Coast FI approach? In this episode I explain why as I try to highlight the key differences between the traditional path to FIRE and this alternative approach.

In a perfect world, we would design our CoastFI plans and execute them flawlessly. But, the reality isn't so simple. I've been coasting for around two and a half years and I recently broke my CoastFI plan by taking on more work than I needed and wanted. But, I was able to fix it, get back on track, and takeaway some key lessons from the experience.

In this episode I cover: My money background: from the early days as an electrician to my pivot to financial services. How I heard about FIRE and became a "Dave Ramsey Graduate." I didn't love my work and I wanted out. My life changed when my daughter was born and I had just heard about CoastFI from Jessica from The Fioneers. CoastFI is reaching a point where savings becomes optional. This can give you a lot of freedom and flexibility in your life. I realized that I had already reached CoastFI. I could downshift my work, and lean into a flexible and intentional lifestyle.  Ten Reasons Why Coast FI is The Best FI: You can reach Coast FI much quicker than other forms of Financial Independence.  It's a more sustainable and balanced approach to FIRE. You continue working, which can have many benefits. Most people will continue working after reaching FIRE anyways. Young people can reach their coasting number much easier. Coasting lets your money do the majority of the heavy lifting. It's incredibly flexible and scalable—you can coast for a bit, then pivot back. There are fewer risks of depression and social isolation. You will increase your Social Security Benefit. You don't have to wait to work on your terms. In the end, CoastFI is a simple reframe: you don't have to go all-out to reach FIRE. You can work towards FI in a slow and balanced way. 

This episode is an introduction to CoastFI and a discussion about the pros and cons: What is CoastFI? What it could mean for you and your life? Who CoastFI is right for? CoastFI is a point where savings becomes optional. You no longer need to save and invest to reach financial independence in the future. You can just let your money grow and compound in the background while you work to cover living expenses. You just need to be patient while your investments grow. CoastFI makes financial independence much more attainable.  Pros of CoastFI: You can enjoy many of the benefits of FI now.  You can work on your terms. You leverage the power of compound interest. You can customize CoastFI to match your unique life. You can gradually transition to FI with no hard stop. Disadvantages of CoastFI: You still have to work. The future is uncertain.  Who is CoastFI right for? Anyone who feels the time they have right now is uniquely valuable. Young people with lots of time for their wealth to grow and compound. Anyone who feels Traditional FIRE is unattainable.