Why Pursue Barista FIRE? - Dividend Income Investor (2024)

Barista FIRE is a way to retire early + have more time now, but it’s not full retirement. To support yourself financially, you work part-time. This article may contain affiliate links.

Have you ever wondered why a person would have the audacity to pursue Barista FIRE?

I mean, why would anyone want to accept a part-time job over a full-time job?

Recently, while reading through the Financial Independence community on Reddit, I began to wonder if Barista FIRE was a good idea. I noticed others questing its value around the community as well.

But I stopped questioning Barista FIRE after I tried it out. I left the financial services industry back in 2019 to work a part-time job instead.

Since I made the switch, I have more time than ever and I’ve never been happier.

In this article, I will tell you exactly what Barista FIRE is and go over the benefits of it.

Let’s dive in.

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What is Barista Fire

First off, I want to discuss the concept of Barista Fire for those that are not familiar with it.

Market Watch defines Barista FIRE as the following:

“retiring from a full-time job, but still working part-time.”

This is a simple definition that I can agree with. But let’s discuss this concept in more detail:

Barista FIRE is a way to retire early and have more time now, but it’s not full retirement. To support yourself financially, you work part-time.

In other words, it is an outright choice to buy time instead of status.

Barista FIRE is accepting a part-time job to have more time at a younger age, even before reaching full financial independence, rather than working a full-time job.

It’s more days off now, and a slower pace earlier in life rather than waiting until you have enough to live off investments alone. Furthermore, it involves making the necessary lifestyle sacrifices to be able to support yourself financially off multiple income streams—one of those income streams is a part-time job.

My Version of Barista FIRE

The reason I’m able to say this is because I created my own version of Barista FIRE in 2019.

But in my case, I don’t work as a Barista at a coffee shop. Although I do adore coffee, I wouldn’t be able to support myself financially from working at a coffee shop.

My version of Barista FIRE is a high paying part-time job that pays me the same as I was earning full-time while working half the hours per week.

If you can keep your expenses low, and if you build alternative income streams to go along with a part-time job, flexible work arrangements can be so much better than full-time jobbing.

Barista FIRE is not for Everyone

Of course, I realize Barista FIRE is not a good option for everyone.

In short, if you wonder why anyone would want to accept less money to work a part-time job, Barista FIRE is not for you.

In my opinion, some people fail to recognize it is possible to be wired differently. Some of us just aspire for different things in life. Perhaps those not willing to consider Barista FIRE as an option are more tolerable of the commute and the 9 to 5 lifestyle draining their time. Maybe they are extroverted enough for the meetings and the bureaucratic environment to be manageable. Maybe they simply couldn’t imagine living on less. Or, maybe they just don’t understand the benefits of pursuing Barista Fire. Perhaps jobbing is not so dreadful to them overall.

Or, dare I suggest that those who do not support Barista FIRE need the status provided by their job to feel ok about themselves.

Frankly, some people need their job. These types will likely become depressed once they actually do retire because they won’t know what to do with their time. Worse, they may experience a loss of identity.

But for those that are truly interested in the concept of Barista FIRE, here are the benefits I’ve noticed thus far:

The Benefits of Barista FIRE:

More Time While Young

Let’s be honest—free time is better when you’re still young.

Even between the age of 40 to 50 (I’m not yet but I’ve observed), people are less mobile and less energetic than they were when they were in their 20’s and 30’s. Don’t lie to yourself, it’s true.

Even if someone is in remarkable shape with the perfect diet, they will not want to walk around as much on a trip as they did when they were younger. And it requires a lot more maintenance to stay in shape.

On top of that, life becomes different with age. People mature. You realize your own mortality a little more with each passing year. The doors slowly close on your dreams and aspirations, as dreams are replaced by more realistic options and by settling down.

Your Nest Egg Can Still Grow

Another great advantage of Barista FIRE is that your nest egg can still grow.

Working a part-time job is a way to avoid withdrawing from your investments so that your money can continue to grow. But this way, you don’t have to wait longer to start enjoying more time now.

Even if you’re saving less or you can’t contribute as much, your investments can do the work for you while you support your lifestyle through part-time work. Depending on the size of your investment portfolio, another 2 to 5 years could generate a lot of extra wealth.

Meanwhile, you’re no longer a full-time working man dreading 5 out of 7 days per week. I can assure you that a shorter week is much more manageable.

Retain Benefits (Dental and Health)

Company benefits play a big role in the companies I choose to work for.

Frankly, I don’t want to pay for the dentist, and it’s nice to be prepared for unexpected expenses.

This is another advantage of Barista FIRE – some part-time jobs still pay benefits.

Better yet, how about working a part-time job that still provides a pension?

That way you have the capability to build an extra income stream for later in life, but you also get more time now to build your own extra income streams.

Less Stressful Job

Based on the Reddit comments I observed, I know not everyone would agree that Barista FIRE jobs are less stressful.

A lot of people argued that working in a coffee shop and dealing with demanding customers is not fun at all. They have a point.

However, you don’t have to take most Barista jobs home with you, and the work is auto-pilot work once you’re used to it.

Also, in most cases, you avoid the bureaucratic environment, the meetings, the dress clothes, and that feeling that your career is stagnant if you don’t care about climbing the corporate ladder.

Socializing

In my opinion, the biggest advantage of a career is relationship building opportunities.

Other than a few long term friends I went to high school with, most of the people I hang out with now I’ve met through work.

Barista FIRE is a great way to make new friends and maintain the social aspect of work at the same time.

Not Tired All The Damn Time

I recently went through a stretch of working 5 of 6 days. It was tiring after getting used to 3 days per week lol. I had a lot of energy for the first 3 to 4 days, but the last 2 days were brutal.

I was almost back in that zone of feeling too tired to want to do anything by the end of it.

Anyways, Barista FIRE provides a lot more days of rest per week. My experience so far has me thinking working 3 days per week is an optimal FI solution.

Less Commuting

One of the most discouraging aspects of jobbing is the commute. I usually don’t even mind the work side of jobbing—I like to work.

During times when I work a lot, though, I get extremely frustrated at how ridiculous commuting is when the internet is at home.

To be more blunt about it, it is slightly angering for an employer to expect me to commute for an hour to use a sh*ttier, slower computer and to dress how they want me to when I have the internet at home! Especially in a damn snow storm!

Then if you need to wear boots for the snow, they expect you to bring a change of shoes because boots are unprofessional. Ugh, it’s sh*t like this that kills me about jobbing.

But this is why I find Barista FIRE to be an excellent option—commuting is more manageable less days per week.

An Extra Income Stream

If you already have an income stream from an investment portfolio, part-time jobbing could be a perfect way to add an extra income stream.

In my case, I am using my part-time job to cover my expenses and provide more time to blog. My goal is to grow my dividend income and blog income on the side.

For others, working 3 days per week could fund trips and personal hobbies. Perhaps the extra income could be used to help out your family or to have money to donate to charity.

Maybe the extra income is just for security. Whatever the reason, an extra income stream is never a bad thing, especially when it contributes to all the other benefits listed above.

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Why Pursue Barista FIRE — Concluding Thoughts

Of course, I’m aiming for full financial independence in the long run.

But hopefully this post provides answers to those that are curious about Barista FIRE.

After working part-time myself, I truly believe that working 3 days per week is an optimal FI solution.

On the other hand, if you have a job that is rewarding and you enjoy your career, Barista FIRE is probably not the most ideal situation for you. In that case, you’re probably better off continuing to work while you save as much money as possible.

But if you desire a slower pace, more time now, and if you’re not chasing status, I would highly recommend considering Barista FIRE.

Moreover, Barista FIRE is not only limited to working at a coffee shop. I don’t. It could just as easily be asking your employer to work less hours at your same job now.

In summary, Barista FIRE is a way to retire early and have more time now, but it’s not full retirement. To support yourself financially, you still work part-time.

Question: Would you consider Barista FIRE, or would you rather work full-time until your completely FI?

I’d love to hear your thoughts on Barista FIRE in the comments below.