Overview of Should You Choose Coast FI or Go All In on FIRE?
This BiggerPocketsMoney episode compares two paths to financial independence: Scott Trench’s all-out FIRE approach at age 25 versus Evan Lawler’s Coast FI strategy at age 25. The core idea is that both paths rely on frugality, income growth, and intentional investing—but Coast FI shifts the goal from “retire as early as possible” to “front-load investing so future retirement is basically on autopilot,” creating flexibility much earlier in life.
What Coast FI Means
Coast FI was defined as a form of financial independence where you’ve invested enough early that, if you stopped contributing, your portfolio would still likely grow to support retirement by traditional retirement age.
Key characteristics of Coast FI
- You still work and cover current expenses.
- You stop needing to save aggressively for retirement.
- You gain psychological freedom and more career flexibility.
- It’s often easier and more realistic for people early in their careers.
Important distinction
- Coast FI is financial independence, not early retirement.
- It’s a milestone that can reduce pressure, but it does not necessarily mean stopping work.
Scott’s All-In FIRE Approach at 25
Scott described his early journey as a more aggressive pursuit of FIRE, with a focus on maximizing financial progress as fast as possible.
Main tactics he used
- Focused on the “big three” expenses:
- Housing
- Transportation
- Food
- Used house hacking to dramatically reduce housing costs.
- Built wealth mostly after-tax early on to preserve flexibility for real estate and other opportunities.
- Pursued side hustles and income growth through startup equity and sales opportunities.
- Read extensively and networked heavily to create upside.
- Kept hobbies and lifestyle balance, but remained highly aggressive about FI.
Evan’s Coast FI Approach at 25
Evan’s approach is similar in structure but more focused on stability, simplicity, and flexibility.
Main tactics he uses
- Also prioritizes the big three expenses.
- Lives cheaply in a small apartment with his girlfriend instead of house hacking.
- Maxes out tax-advantaged accounts first:
- 401(k)
- IRA
- HSA
- Uses broad-market index funds.
- Keeps things simple and avoids real estate complexity for now.
- Is building a side-income path through social media and other online efforts.
His philosophy
- Frugality still matters a lot.
- Coast FI creates a “financial runway” and a sense of relief.
- He values flexibility to pivot into business or other work once Coast FI is reached.
Major Differences Between FIRE and Coast FI
1. Investment strategy
- Scott’s approach: more emphasis on after-tax liquidity and real estate opportunities.
- Evan’s approach: more emphasis on tax-advantaged retirement accounts and broad index investing.
2. Risk and flexibility
- Scott: used cash and leveraged real estate to create opportunities.
- Evan: wants simple, low-maintenance investing with the option to pivot later.
3. Lifestyle
- Scott at 25: aggressive optimization, house hacking, side hustles, networking, startup risk.
- Evan at 25: cheap apartment, simple investing, side projects, lower complexity.
4. Goal setting
- Scott: true financial independence and early retirement potential.
- Evan: reach Coast FI first, then decide whether to keep going, pivot careers, or start a business.
The Role of Frugality and Income Growth
Both hosts strongly agreed that the biggest levers are:
- Reducing major expenses
- Increasing income
Shared takeaways
- Cutting small expenses matters less than controlling housing, transportation, and food.
- Income growth is just as important as frugality.
- Side hustles are easier than ever thanks to the gig economy and online tools.
- Financial independence is really a spectrum of increasing life flexibility.
Real Estate: Powerful but Less Obvious Today
Scott emphasized that real estate was a major accelerator in his own journey, especially through house hacking. Evan, however, sees real estate as less obvious and less appealing right now.
Why Evan is not prioritizing real estate
- It feels more complex than simple index investing.
- He prefers the convenience of not dealing with tenants or lenders.
- He sees Coast FI as achievable without real estate.
- He views real estate as something he may explore later if circumstances change.
Scott’s view
- Real estate can still be extremely powerful.
- In some markets, it remains a compelling path to reduce housing cost and build leveraged wealth.
- But it’s not the only way to build toward FI.
The “Middle-Class Trap” and Liquidity
The conversation also touched on a common issue in personal finance: being wealthy on paper but lacking accessible cash.
Main concern
- Much of a person’s net worth can be locked in:
- retirement accounts
- home equity
- That can create a feeling of being stuck even when the numbers look strong.
Coast FI’s benefit
- It can psychologically reframe your situation.
- It helps people see that they may already be on track for retirement.
- But Scott stressed that liquidity still matters if you want real-life optionality.
Best-case setup
Evan suggested an ideal balance might be:
- Maxing retirement accounts
- Building a cash or cash-equivalent runway
- Preserving flexibility for future changes
Evan’s Current Progress
Evan shared that he has around $200,000 invested and is projecting that, if left alone, it could grow into a retirement income of about $100,000 annually in inflation-adjusted terms by retirement age.
His next target
- Grow from roughly $200K to $500K by saving around $3,300 per month
- That would potentially grow to around $5 million by age 65
- That could support roughly $200K/year in inflation-adjusted retirement income
Day-to-Day Lifestyle Insights
Evan described a very intentional, low-cost lifestyle:
- Small, old apartment
- Shared rent
- Older car with minimal concern for comfort
- Keeps social life and hobbies active
- Spends freely on memories and experiences, not on high-consumption living
Scott praised this as a good example of focusing on the spending that actually matters.
Main Takeaways
- Coast FI is a valid and useful milestone, especially for people starting early.
- FIRE and Coast FI are not opposites; they are different points on the same spectrum.
- Big expenses matter most—housing, transportation, and food are the places to optimize.
- Income growth is crucial and often underemphasized.
- Simplicity has real value: broad index funds and tax-advantaged accounts can be a powerful path.
- Flexibility matters: Coast FI can create room to pivot careers, start a business, or reduce work stress.
- There are multiple right answers depending on your goals, family situation, and risk tolerance.
Final Thought
The episode ultimately presents Coast FI as a modern, flexible evolution of FIRE—not a replacement, but a more attainable and psychologically relieving milestone for many young earners. Scott and Evan agree that the best financial independence strategy is the one that balances future security with present-day life design.