Coast FI vs Barista FI
Two part-way milestones: Coast FI means no more saving is needed; Barista FI means part-time income still covers some costs.
Coast FI and Barista FI are both partial milestones on the way to full financial independence, and they're easy to confuse. Coast FI means your existing investments will grow to fund retirement on their own — you still work to cover today's expenses, but you no longer need to save. Barista FI means you've stepped back to part-time work that covers part of your spending, often for the health insurance, while your portfolio carries the rest.
The practical difference: a Coast FI person could still be working full-time, just not saving; a Barista FI person has actually downshifted their work and is drawing partially on their portfolio. Many people pass through Coast FI on the way to Barista FI on the way to full FIRE.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.