Coast FIRE is achievable

Most finance blogs talk about the FIRE (financial independence/ retire early) movement and it is quite famous nowadays where everyone wants to retire early. FIRE is nothing but retiring early by creating enough wealth for yourself as early as possible. That is a wealth created to retire at the age of 40/45/50 years rather than retiring at the traditional 60 years. This way you will be financially independent and free from worries about money.

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But if you ask anyone they will say that FIRE is not easy to achieve. Forget early, even normal retirement at 60 is not possible. This is mainly of bad retirement tactics and not living their financial commitments in the right way. Now normal FIRE is hard, but there is a concept of Coast Fire which is a type of FIRE which is relatively easy to achieve than the normal FIRE.

A person achieved Coast FIRE when he has enough corpus already which will grow to the FIRE corpus in the future and that investment does not need any new investment. This means that now you have to work only to earn money for your monthly expense and wait for your 5-10 years till your early retirement age to achieve the actual FIRE.

Let's take an example,

If someone is 30 years old and earning 1 lakhs a month, in order to achieve FIRE at the age of 45 years, he might have to create a corpus of Rs 3 Crore. In the next 10 years, he has already created a corpus of Rs 1.5 Crore. Now his 1.5 Cr can grow to Rs 3 Cr in another 5 years and now he/she can work only in that job which will help him to get monthly expenses rather than putting any new money in the retirement investment. All he/she needs is to create an income that can take care of his expenses for another 5 years without touching the existing corpus. And now he can retire early at 45 years of age.

Now, this is a good way to achieve the FIRE because people might have already achieved it and they do not know it actually or are on a course toward achieving it.

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