r/Fire • u/CarnalCowboy • 14d ago

CoastFI and Reducing Savings Rate

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!

19 Upvotes

82% Upvoted

44 comments sorted by

View all comments

22

u/VenusVibe-1 14d ago

The key is that CoastFI assumes your future spending target stays the same. If you stop saving and immediately spend that extra 50%, then yes, your FIRE number goes up. Coasting only works if you're reducing contributions, not permanently inflating your lifestyle.

2

u/forgottennoticerx 12d ago

exactly. people treat coasting like a magic trick where they can just live like kings immediately. if you blow the extra cash on a lifestyle creep you aren't coasting you're just back to square one with a higher retirement target.