Let’s be honest: the traditional FIRE (Financial Independence, Retire Early) movement can feel exhausting. Save 50-70% of your income? Work like a maniac for a decade? Skip every latte and vacation?
There’s a better way. It’s called Coast FIRE, and it might be the smartest financial strategy you’ve never heard of.
What Is Coast FIRE?
Coast FIRE is the financial independence strategy where you front-load your savings aggressively early in life, then ‘coast’ on compound interest until you hit traditional retirement age.
Here’s the beautiful part: once you reach your Coast FIRE number, you can stop saving entirely. You could work part-time, take a lower-paying dream job, travel for a year, or just work enough to cover expenses while your investments do the heavy lifting.
The math is simple but powerful. Save enough early, let compound growth work for 20-30 years, and your nest egg will be waiting for you at 60 or 65—without requiring another penny of contributions.
The Math Made Simple: Coast FIRE Calculator Walkthrough
Let’s run through a real example using the WalletBurst Coast FIRE calculator:
Scenario: You’re 25 years old, want to retire at 60 with $1.5 million, and expect 7% annual returns.
- Target retirement amount: $1,500,000
- Current age: 25
- Retirement age: 60
- Expected return: 7%
- Your Coast FIRE number: $200,000
That’s it. Save $200,000 by age 30 (or whenever), and you’re done. Your money will grow to $1.5 million by age 60 without you adding another dollar.
How? Compound interest. That $200,000 invested at 7% for 30 years becomes:
- Age 30: $200,000 (you stop contributing)
- Age 40: $393,425
- Age 50: $773,937
- Age 60: $1,522,451
The earlier you start, the less you need to save. Start at 20 instead of 25? Your Coast FIRE number drops to around $142,000.
Coast FIRE vs Traditional FIRE: Why the Middle Path Wins
Traditional FIRE requires saving $1-2 million before you can breathe easy. For most people, that means grinding through their 20s and 30s, living on rice and beans, and praying the market cooperates.
Coast FIRE gives you options:
- Job freedom: Take a lower-paying role you actually enjoy
- Entrepreneurship: Start that side hustle without fear of failure
- Location independence: Move somewhere cheaper, work remotely, travel
- Work-life balance: Go part-time, spend more time with family
- Peace of mind: Know your future is secured, even if today is uncertain
More people are choosing Coast FIRE because it recognizes a simple truth: your 20s and 30s are valuable. Those are prime years for experiences, relationships, and building a life—not just a bank account.
Case Study: How a $75K Salary Worker Reaches Coast FIRE by 35
Meet Alex. Age 25, making $75,000 per year, living in a medium-cost city.
Alex’s Coast FIRE plan:
- Save 40% of income ($30,000/year) from age 25-30
- Invest in low-cost index funds (7% expected return)
- Reach $175,000 by age 30
- At 30, drop to part-time work covering expenses only
- Let investments grow untouched for 30 years
The result: By age 60, Alex has $1.3 million waiting—without contributing another penny after 30. Meanwhile, Alex spent their 30s and 40s working 20 hours a week, traveling, and living life on their terms.
Compare that to the traditional FIRE path: saving 60%+ for 15 years, living on $25,000/year, and finally retiring at 40—exhausted and socially isolated.
Alex chose freedom now AND freedom later.
Your Action Steps: Calculate Your Coast Number
Ready to figure out your own Coast FIRE number? Here’s what to do:
Step 1: Calculate Your Target
Use the 4% rule: Multiply your desired annual retirement income by 25. Want $60,000/year in retirement? You need $1.5 million.
Step 2: Run the Coast FIRE Calculator
Head to WalletBurst and plug in:
- Your current age
- Target retirement age
- Desired retirement amount
- Expected investment return (7% is conservative for stock index funds)
The calculator spits out your Coast FIRE number. That’s your target.
Step 3: Front-Load Your Savings
Max out your 401(k), IRA, and any other tax-advantaged accounts. Aim for that Coast number as fast as possible. The sooner you hit it, the less you need to save total.
Step 4: Scale Back and Live
Once you hit your number, you can stop saving for retirement. Work enough to cover expenses, or find work you actually enjoy regardless of pay. Your future self is already taken care of.
Tools to Get You Started
- WalletBurst Coast FIRE Calculator: The gold standard for running your numbers
- Investment Growth Projections: Use SEC Compound Interest Calculator to visualize growth
- Portfolio Trackers: Personal Capital or Mint to monitor your progress
- Retirement Accounts: Max out 401(k) match first, then IRA, then back to 401(k)
The Bottom Line
Coast FIRE isn’t lazy—it’s strategic. It recognizes that life happens in the present, not just the future. By front-loading your savings and letting compound interest do the work, you can have both financial security AND life flexibility.
You don’t have to choose between enjoying your 30s and retiring comfortably at 60. Coast FIRE gives you both.
Run your numbers today. Your future self—and your present self—will thank you.