Bigger Pockets Money Podcast: Coast FI

Many investors looking at the market today are considering how to reach their retirement goals. For those looking to retire early, big market swings may put a dent in the plan.

But there’s a strategy called “coast FI.” It involves balancing out focusing on keeping costs to a minimum. Rather, it involves finding balance between saving for as early a retirement as possible while also enjoying life.

Those who pursue financial independence (FI) remain focused on earning as high a salary as possible, saving as much as possible. The goal? To retire as soon as someone hits the right net worth.

That can mean extreme money-saving moves. But it’s possible for those who earn even a below-average salary to save significantly. And by investing those savings in a diversified portfolio, many have found it possible to hit their retirement goals. For some, that may be as young as in their 30s.

The challenge? Things like lifestyle creep. By avoiding the urge to spend more after a big salary bump, the FI process can accelerate.

However, running full stop on working and accumulating money can prove draining. That’s why coast FI may make more sense. It allows one to continue to aggressively save and invest, while also enjoying life along the way.

To listen to the full podcast on how this strategy works, click here.