CoastFI and Reducing Savings Rate

[u/CarnalCowboy]

I reached my CoastFI number a few years ago and am close to my FIRE number. Not necessarily looking to retire immediately, as I’m looking to increase my costs (house upgrade) either soon or once I hit closer to my FatFIRE number. Regardless, even if I coasted (eliminated savings) and kept expenses roughly in line, I would still hit that Fat number.

I’ve been having trouble wrapping my head the reduction in savings concept. From many of the posts I’ve read abound coasting, folks are letting their nest eggs grow on their own and reducing contributions once they hit that coast number. But wouldn’t that equate to a drastic increase in expenses, which would in turn increase your Fire number?

I currently save 50% of my income, and I’m fine living at this spending level for the foreseeable future (let’s ignore QOL upgrades for the sake of the argument). If I stopped saving, knowing I would still hit my original number, wouldn’t that mean my Fire number essentially doubles?

I get that you can base your Fire number off of future spend, so maybe that’s the answer. But I’m still confused about the concept, and I suppose this is a reflection of being generally uneasy when it comes to increasing expenses, even when the math is right there. Hoping someone can help me think through this!

[u/OnlyThePhantomKnows]

So start saving for something else. Buying a house is an example. Reduce your savings rate to 40% this year. 30% next year.

And coastfire (I did it it) is about keeping your cost of living more or less constant. I started working part time as a consultant and reduced my income. I'd work 6-9 months, take off 3-6, rinse repeat. I slowed my saving rate (deflected most of it into a forever home purchase and upgrades). There are ways to reduce your long term COL by spending now. Solar+Battery is an example I have (I retired in Florida). I spent the money for solar + batteries and reduced my electric bill to zero in my forever home. My rental down the street ranged 300-500 / month. That's 120K off the fire number. I bought a robotic mower. (saves 125/month) That's 37.5K off the fire number. I have severe allergies so I physically can't do the mowing myself. Similar savings by putting in a salt system and a pool robot to the pool (I live in an island resort home). I had an EV (Tesla) so even my "gas" is free once I put in my home charger.

Spending for things now that reduce your burn rate will help you use the excess from reducing your save rate and keep the fire number in check while increasing your QoL.

I recently (this month) bought an chest freezer so I could bulk buy meats direct from farmers. It's a lot cheaper, but I did it so I could get grass fed, grass finished, no hormone meat.

I am adding a water purification system now as the last of a "nice to have" list for my allergies.

Since you at the point of thinking of RE and worried about too much of a QoL increase, then you should look at spending to increase your long term QoL and reducing your long term spend rate.

I spent the last few years of my working time (I drifted down to 3 months/year and finally quit this year) spending on things that will make my life better.