Guest Sign UpLoginNew PostSections ₦0What's Up?DownloadsShopChatToolsAdvertise
Join the Publishers' Program. Get paid for writing.
Recharge DSTV, GOTV, StarTimes, & PREPAID METERS on

Mr A

What is Coast FIRE?

Coast FIRE, also known as Coast Financial Independence Retire Early, is an approach to achieving financial independence and retiring early, usually by the age of 40 or 50, by investing a significant portion of one's income and letting the investments grow until they provide enough passive income to cover living expenses. It hinges on the power of compound interest to grow your investment, the idea being that you save and invest enough money to "coast" through life without ever having to work again.

The main difference between Coast FIRE and traditional FIRE approaches is that with Coast FIRE, you establish a solid financial foundation while you're young, then focus on maintaining a comfortable, work-life balance. In traditional FIRE, the focus is on aggressively saving and investing so you can quit the workforce as soon as possible.

In this Coast FIRE Guide 2.0, we'll outline the steps, strategies, and financial planning needed to achieve financial independence and retire early at a young age.

Steps to Achieve Coast FIRE

Step 1: Determine Your Coast FIRE Number

The first step in pursuing Coast FIRE is to calculate how much money you need to save and invest to reach financial independence. This is called your Coast FIRE number. To do this, you'll need to:

  • Estimate your annual living expenses in retirement, taking into account factors like housing, healthcare, food, travel, and leisure activities.
  • Choose a safe withdrawal rate (SWR), which is the percentage you'll withdraw from your investment portfolio each year to cover your expenses without depleting the principal. A common SWR is 4%.
  • Divide your annual expenses by your chosen SWR to determine your Coast FIRE number. For example, if your annual expenses are $40,000 and you've chosen a 4% SWR, your Coast FIRE number would be $1,000,000 ($40,000 / 0.04 = $1,000,000).

Step 2: Develop a Savings and Investment Plan

Once you know your Coast FIRE number, create a savings and investment plan to help you reach that goal. Consider the following:

  • Set a target age for achieving Coast FIRE, taking into account factors such as your current age, desired retirement age, and life expectancy.
  • Calculate how much you need to save and invest each month to reach your Coast FIRE number by your target age, considering your expected investment returns and inflation.
  • Determine your monthly savings rate by dividing your necessary monthly savings by your monthly income, and then multiply by 100 to find the percentage.
  • Review your budget and expenses to identify areas where you can cut back and increase your savings rate.
  • Invest your savings in a diversified portfolio of low-cost index funds or exchange-traded funds to maximize returns and minimize fees.

Step 3: Implement Cost-Saving Strategies

To accelerate your path to Coast FIRE, consider implementing cost-saving strategies such as:

  • Paying off high-interest debt, which can free up more money to invest.
  • Living below your means by cutting back on unnecessary expenses.
  • Finding ways to earn additional income, such as through side gigs or passive income streams.
  • Taking advantage of tax-advantaged retirement accounts, like 401(k)s and IRAs, to reduce your tax liability and grow your wealth faster.
  • Optimizing your investment strategy to minimize fees and maximize returns.

Step 4: Monitor and Adjust Your Coast FIRE Plan

Your Coast FIRE journey will likely involve several adjustments as your financial circumstances, priorities, and market conditions change. Regularly monitor your progress and make adjustments as needed:

  • Track your spending and savings rate to ensure you're on track to reach your Coast FIRE number by your target age.
  • Reevaluate your investment strategy to ensure it aligns with your risk tolerance and financial goals.
  • Adjust your budget and savings goals as your income, expenses, and life circumstances change (e.g., marriage, children, job changes).
  • Consider using financial tools, apps, and online calculators to help you stay organized and on track with your Coast FIRE goals.

Key Strategies for Success

Maximize Savings with Automation

Automating savings is a powerful way to ensure you consistently contribute to your Coast FIRE goals. Set up automatic transfers from your paycheck or checking account to a dedicated savings or investment account, and adjust your budget to treat these contributions as non-negotiable expenses.

Invest in Low-Cost Diversified Portfolios

Investing in low-cost, diversified portfolios can help you achieve higher net returns while protecting against market volatility. Consider investing in index funds or exchange-traded funds for lower fees and broad market exposure.

Prioritize Financial Education

Continuing to educate yourself about personal finance, investing, and tax strategies can help you optimize your Coast FIRE plan and make better-informed decisions. Read books, follow reputable finance blogs, participate in online forums, and attend workshops or seminars whenever possible.

Lean on a Support Network

Finding like-minded individuals on the Coast FIRE journey can be a valuable source of motivation, inspiration, and accountability. Join online forums or local meetup groups to connect with others pursuing financial independence, and consider sharing your progress and experiences on a blog or social media.

Stay Flexible and Adaptable

Lastly, understand that setbacks and unexpected expenses will be part of your journey. Being flexible and adaptable to change, while remaining committed to your Coast FIRE goals, is essential for success.


Coast FIRE is an approach to achieving financial independence and retiring early that prioritizes building a solid financial foundation in your younger years, allowing you to coast through life without the need to work for money later on. Careful planning, cost-saving strategies, financial education, and adaptability are all vital components to successfully achieve a Coast FIRE lifestyle. By following this guide and remaining committed to your goals, you can enjoy financial freedom and an early retirement at a young age.

Follow @JalingoHQ on twitter.

Related Topics

Top SectionsSee More

This forum does not have any topics.

Top Posters This Month (500 Credits)
(See More)