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For a lot of people chasing financial independence, the end goal is pretty simple in theory: save enough money so work becomes entirely optional.<\/p>\n
But for Andy Hill, 44, a family finance coach and podcaster (1), that idea has shifted over time into something a little less rigid \u2014 and, he says, a lot more realistic for regular households trying to make it all work.<\/p>\n
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He started out following the classic FIRE (Financial Independence, Retire Early)<\/a> playbook, saving aggressively with the goal of potentially stepping away from work decades ahead of the traditional timeline. But as life, costs and priorities evolved, he moved toward a more flexible approach known as Coast FIRE<\/a>. That means you save aggressively for a while, until you have enough to \u201ccoast\u201d for a number of years until retirement, no longer needing to save, because of returns and compound interest that you have accumulated on earlier investments.<\/p>\n Coast FIRE, combined with what he calls \u201cF-you money\u201d are, together, the \u201ccheat code\u201d for the FIRE movement, he said in an interview with Business Insider (2).<\/p>\n And for Hill, that mix didn\u2019t just change his financial plan on paper \u2014 it changed the day-to-day feeling of working, saving and having options in a way he hadn\u2019t experienced before.<\/p>\n What is Coast FIRE and an \u2018F-you fund\u2019?<\/strong> <\/p>\n Coast FIRE is basically a lighter, less all-or-nothing version of the FIRE plan.<\/p>\n Instead of trying to save every extra dollar until you can fully walk away from work, you do the heavy lifting early in your career \u2014 building up a solid investment base \u2014 and then, at some point, shift gears.<\/p>\n Once you hit that \u201cenough is enough\u201d number in savings, you stop aggressively pouring money into retirement accounts. You still work, but you\u2019re no longer in full accumulation mode. Your investments are left alone to grow over time, while your paychecks go toward everything else life throws at you \u2014 housing, kids, travel.<\/p>\n For Hill, that number was about $550,000 invested by age 40. From there, the math takes over. With an assumed long-term return of around 6% a year, that portfolio could potentially grow to roughly $2 million over time without adding another dollar, Business Insider reporting says.<\/p>\n And compared to traditional FIRE, where the goal is often to fully replace your income much earlier, the coasting approach can take a lot of pressure off the savings target itself.<\/p>\n But the part that really changed things for Hill\u2019s family financial plan was what he calls his \u201cF-you money.\u201d<\/p>\n It\u2019s not a technical concept \u2014 it\u2019s just his word for a cash cushion. It\u2019s like an emergency fund, in that it\u2019s sitting somewhere safe like a high-interest savings account. But it\u2019s enough to give you the ability to walk away from a job or situation that just isn\u2019t working anymore.<\/p>\n Hill told Business Insider there was a stretch where he felt stuck in a stressful corporate job \u2014 earning a solid income, but feeling like leaving wasn\u2019t really an option. That mismatch between income and freedom pushed him to build a buffer that felt big enough to give him confidence, not just security.<\/p>\n So his \u201cF-you\u201d goal was simple: Accumulate 12 months of living expenses in cash before making any big career moves, giving him enough runway to step back and try something different without immediately worrying about how the bills would get paid.<\/p>\n By 2020, he and his wife Nicole had both reached their Coast FIRE target and fully built out their F-you fund. And according to Hill, that\u2019s when things actually started to feel different.<\/p>\n \u201cThe year I left my corporate career, I was making around $180,000 per year working 40 to 50 hours per week,\u201d he told CNBC\u2019s Make It (3). \u201cThis year, I\u2019m paying myself $100,000 working 20 to 25 hours per week.\u201d<\/p>\n So even though the income dropped on paper, the trade-off was obvious: more control over time, less pressure and a work setup that actually fit his family life \u2014 something a growing number of people say feels harder to come by as everyday costs continue to rise faster than paychecks in many industries.<\/p>\n Read More: Thanks to Jeff Bezos, you can become a landlord for $100 \u2014 without the headache of actually being one<\/a><\/strong><\/p>\n How to build up an initial cash cushion<\/strong> <\/p>\n Hill stresses that saving up an \u201cF-you fund\u201d isn\u2019t about living on rice and beans or cutting every bit of joy out of your life. In fact, he thinks that approach could backfire for most people.<\/p>\n When savers get too strict, too fast, that\u2019s often when the financial decisions get worse, not better.<\/p>\n \u201cThere\u2019s so many other things that you can do with your life besides working,\u201d he said to CNBC.<\/p>\n Rather than chasing complicated strategies or overnight wins, focusing on simple money habits that are easy to maintain can be far more effective. Over time, those small choices can compound into real wealth.<\/p>\n Invest your spare change <\/p>\n Not everyone has thousands of dollars sitting around waiting to be invested. With nearly 57% of Americans living paycheck to paycheck (4), finding extra cash to put aside can feel like a challenge.<\/p>\n But building wealth doesn\u2019t always start with a huge deposit. Even small, consistent contributions can add up over time thanks to the power of compounding. A $20 weekly investment, for instance, could potentially grow past $179,000 over 30 years if compounded at a 10% annual return (5).<\/p>\n The key isn\u2019t necessarily having a lot of money today \u2014 it\u2019s giving your money enough time to grow.<\/p>\n If those kinds of returns are too tempting to pass up, apps like Acorns<\/a> make it easier by automatically rounding up everyday purchases to the nearest dollar and investing the difference.<\/p>\n Signing up takes just minutes: All you have to do is link your cards and Acorns will round up each purchase to the nearest dollar and invest the spare change into a diversified portfolio managed by experts at leading investment firms like Vanguard and BlackRock.<\/p>\n With Acorns, you can invest in an S&P 500 ETF with as little as $5 \u2014 and, if you sign up today and set up a recurring investment, Acorns will add a $20 bonus<\/a> to help you begin your investment journey.<\/p>\n Track your spending <\/p>\n A six-figure net worth usually isn\u2019t built through one big financial decision. More often, it comes from making small improvements consistently \u2014 and that starts with knowing exactly where your money goes.<\/p>\n A quick financial checkup can reveal areas where you may be overspending \u2014 from subscriptions to insurance costs \u2014 potentially freeing up money that can be put toward long-term goals.<\/p>\n You can create a custom budget and track where your money is going at all times with Monarch Money<\/a>.<\/p>\n Once you link your accounts \u2014 including investments and real estate \u2014 you will be able to view every transaction through one clean, searchable list<\/a>. This way, you can spot any unexpected charges, such as unwanted subscriptions, quickly and seamlessly.<\/p>\n Monarch Money also helps you forecast your spending beyond just one month<\/a>, as well as save for big goals along the way.<\/p>\n What\u2019s more, you can get 50% off your subscription for the first year<\/a> when you sign up using the code WISE50.<\/p>\n Take a closer look at your fixed bills <\/p>\n When people think about saving money, they often focus on small purchases. But if you want to make a meaningful dent in your finances, it\u2019s worth looking at the biggest expenses first.<\/p>\n \u201cThe bigger expenses matter the most,\u201d Hill told Business Insider.<\/p>\n Even though inflation has cooled from its 2022 peak, prices remain elevated compared to just a few years ago. That\u2019s why lowering fixed costs can be one of the most effective ways to create extra room in your budget.<\/p>\n Shopping around with services like Insurify can help you compare options and potentially find lower rates. Simply answer a few questions and you can see available deals in minutes.<\/p>\n Take car insurance as an example. The average cost of full coverage auto insurance reached $2,638 in 2025, up 12% from the year before, according to Bankrate (6).<\/p>\n Shopping around and comparing rates through services like Insurify<\/a> can help you uncover cheaper options.<\/p>\n Here\u2019s how it works: Just answer a few basic questions<\/a> and Insurify will show you the most affordable deals in as little as three minutes.<\/p>\n Those who shop around and compare car insurance rates from different providers on Insurify and choose the best available deal save $1,100 on annual premiums on average.<\/p>\n Not only is the process 100% free, but you could also save up to 15% by bundling your car and home insurance<\/a>.<\/p>\n For those looking to exclusively change their current home insurance policy, platforms like OfficialHomeInsurance.com<\/a> lets you compare offers from leading home insurance providers near you for free<\/p>\n Simply enter some basic information about yourself and the type of home you own and OfficialHomeInsurance will browse through their database of over 200 insurers and display the lowest quotes for you<\/a> in just two minutes.<\/p>\n By comparing your options and selecting the best rate available, you could save an average of $482 per year on premiums<\/a>.<\/p>\n Get an expert opinion <\/p>\n The path to financial freedom looks different for everyone.<\/p>\n Some people want to retire early, while others want the freedom to make career and lifestyle choices without money being the deciding factor.<\/p>\n But getting there requires more than just saving \u2014 it requires making smart decisions about investments, taxes, risk and diversification.<\/p>\n A financial advisor can help you avoid costly mistakes and create a roadmap based on your personal situation. That\u2019s where Advisor.com<\/a> can come in, connecting you with an expert near you for free.<\/p>\n Advisor.com<\/a> does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.<\/p>\n Just enter a few details about your finances and goals and Advisor.com<\/a>\u2019s AI-powered matching tool will connect you with a qualified expert<\/a> best-suited for your needs based on your unique financial goals and preferences.<\/p>\n Finding the right advisor isn\u2019t always easy \u2014 there\u2019s no one-size-fits-all solution. That\u2019s why Advisor.com<\/a> lets you set up a free initial consultation<\/a>, with no obligation to hire, to see if they\u2019re the right fit for you.<\/p>\n – With files from Laura Grande.<\/p>\n You May Also Like <\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n Article Sources<\/strong> <\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines<\/a>.<\/p>\n YouTube (1<\/a>); Business Insider (2<\/a>); CNBC (3<\/a>); MarketWatch Guides (4<\/a>); Acorns (5<\/a>); Bankrate (6<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. 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