[USER]

Hello, I just came across this concept after friends of mine shared their early retirement story. I’m hoping to get some feedback and guidance on my situation and how to Barista FIRE by 40.

I am 32, single, therapist at a county mental health center. My salary is 73k and I am a veteran with disability which is at $2045/mo.

I own my home and mortgage rate is 2.6%. I have about 20k in credit card debt.

My car is paid off and good condition (thank you Toyota). I have est 10k in my TSP from military, have KPERs 3 in KS and buying back my military time – current amount 10k.

I have a Roth through Victory Capital around 6k. I also have 457b around 10K and my job matches up to 4% – I currently am at 2%.

I know I need to attack debt. I am currently using my GI bill to bring in extra money which is about 1100/mo. Using this to pay off debt fast. I also rent out a room to family for $400/months.

Open to any and all tips, feedback, corrections. I also can use my VA health insurance when I step away from my full time job. I can go part time doing private practice, teaching, all kinds of options.

Thank you!!

[Russell]

What are your expenses, both now and in your Barista phase?
The key question is always expenses and net income.
1) make a budget

2) assess expenses. Can they be reduced now to help you save? Can they be reduced when you FIRE?

For example, maybe you live in a HCOL area now while working, so housing is expensive, but you plan to sell your house and move to a VLCOL area in retirement.

2) throw all net income at that credit card debt

3) save until you have 25x your expenses. If you have a barista style job in mind, save until you have 25x the expenses after that income

[Ngoc]

Pay off your credit card first. I would keep the house if I were you with that interests rate.

I will also live on my salary only and put aside the VA pay into investments or saving account.

[David]

You aren’t really at a stage to start thinking about FI/RE. Focus on immediate needs:

0.) Make a budget.

1.) Credit card debt.

2.) Max out employer match.

3.) Emergency Fund in HYSA.

4.) Max out tax efficient retirement savings.

At that point, reassess what you’ll need to support your lifestyle on Barista FI/RE.

Start saving in a taxable brokerage to meet your Barista FI/RE needs.

[Author]

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