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How to use Coast FI to pivot careers, volunteer more, and donate generously

Writer's picture: Rebecca HerbstRebecca Herbst

Lately, I've been on a Coast FI kick. I find myself talking about it over and over again. I made it a central theme during my presentation at the Center for Effective Altruism's EAGx Virtual event earlier this year, and continue to bring it up with the many people I meet as part of Y&S's ​free coaching program.​


Why am I so obsessed with Coast FI? Because it's such a practical way to achieve your personal and professional goals faster.


Check out my talk at EAGx Virtual 2024


If you're just hearing this term for the first time, Coast FI means you have enough money saved up and invested that you no longer need to save for retirement. Your existing portfolio, as is, will grow and grow on its own so that you achieve full financial independence by the time you hit traditional retirement age. Usually at this financial stage, you just need to make enough money to cover your expenses, but you no longer need to save additional funds to invest for your future. In other words, your portfolio will 'coast' it's way to FI.



The true power of Coast FI means you get more options.


If you no longer need to save extra funds, you no longer need to make as much money, or you no longer need to save as much. This empowers you to make change. It means you can scale back to work part-time. Or it means you can pivot to a lower-income job. Or it means you can take some time off.


Many people in pursuit of FIRE are chasing full financial independence. But oftentimes this is far off. Maybe you are decades away from full FI, but perhaps there is a world in which you are only a few years away from Coast FI. This moves you away from a long, daunting timeline to a world of freedom that is closer than you might think.


For do-gooders, this unlocks opportunity. Here are some examples of real life changes you could make as you approach Coast FI.


  • Pivot to work at a nonprofit you admire: They may not be able to provide the same salary as your current job but you are able to manage the lower pay now thanks to Coast FI

  • Make a large career change: You can start lower down the ranks because you don't need the same salary as you did before

  • Freelance or take on short-term contracts: Explore your passions or upskill through lower pressure work

  • Work for an underfunded start-up: So many start-ups want to do good but do not have the funds to hire top talent. This is an area where you can have a huge impact if you are willing to take lower paid work.

  • Dedicate your time to volunteering or advocacy: Because you can work fewer hours you can volunteer your skills and time to make a difference

  • Keep your job and donate more: If you have a job you love and never want to leave it, consider staying with it and just donating more since you've already hit Coast FI


Here's what Julia, a participant in our free coaching program, had to say about Coast FI and the impact it had on her:


"I realized I already had enough saved for retirement to justify taking a new job with greater meaning and impact, even if it meant reducing my salary and investment contributions for a period of time."

Coast FI isn’t just a financial milestone; it’s a chance to live a purpose-driven life. It’s the point where you transition from working to living with intention and impact. Whether your goal is to do more good in the world, spend more time supporting causes you care about, or simply enjoy the freedom to focus on others, Coast FI can make it possible.


Do you have an idea for how Coast FI might help the world be a better place? Reach out and let us know.


 

Disclaimer:

The information contained in the Yield & Spread website, course materials and all other related content is provided for informational and educational purposes only. It is not intended to substitute for obtaining accounting, tax, or financial advice, and may not be suitable for every individual. Yield & Spread is not a registered investment, legal or tax advisor or a broker/dealer.






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