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Our Barista FIRE Plan: Financially free at 50
- J+A
- Jul 29
- 5 min read
Financial freedom is something we’ve dreamed about for years. Our desire to live in Hungary (my wife’s birthplace) is growing stronger, so we can be closer to that part of the family. This dream is concrete and hopefully within reach in 15 years. In this article, we’re sharing our Barista FIRE plan, with which we aim to achieve financial independence around the age of 50 – in 14 years.
What is Barista Fire?
Barista FIRE is a form of financial freedom. You earn enough passive income to cover your fixed expenses, such as rent, groceries, and insurance. At the same time, you work part-time or flexibly for extra income. This way, you stay active but are no longer dependent on a full-time job or fixed salary.
We combine this with the Rich Life philosophy by Ramit Sethi. This means consciously spending money on what truly brings happiness — like travel, time with family, or a meaningful hobby. It’s not about spending less, but about making better choices with your money.
Our journey towards Barista FIRE
Defining Our "Rich Life"
Financial independence isn’t just about money. It’s also about living intentionally and choosing what truly fits your values. We often ask ourselves:
What really makes us happy? and Are we spending money on what we want – or on status we don’t need?
For us, happiness lies in experiences. We love to travel, especially to Hungary to see family. We also enjoy short trips in the Netherlands, often with our dog. Instead of expensive hotels, we choose affordable, unique stays via Airbnb or Booking.com.
Our lifestyle is built around freedom, family, and simplicity. That’s something we want to continue after we emigrate. But let’s be honest: this way of living does cost money. That’s why we plan carefully and keep an eye on our spending — without sacrificing what matters most to us.
Increasing Our Savings Rate
Currently, our savings rate is about 25%, of which 19% goes toward our mortgage. The remaining 6% isn’t enough to achieve our FIRE goals. We want to spend more mindfully by cutting unnecessary expenses and investing more in experiences that bring joy.
To increase our savings rate, we apply the following strategies:
Automatic saving: A fixed percentage is transferred to our investment and savings accounts immediately after receiving our salary.
Minimizing expenses: Canceling unnecessary subscriptions and reducing impulse purchases. For example, reviewing our internet plan saved us €30 per month — a nice win!
Rebuilding Our Emergency Fund
Our emergency buffer shrank last year due to a real-estate investment and major maintenance. This year, we’re using extra savings and vacation pay to rebuild it. Our goals:
Repairing the gutter ourselves instead of replacing it.
Having at least 2–3 months’ worth of fixed expenses as an emergency fund.
Further building our maintenance fund.
We also try to do more maintenance ourselves to save money and preserve our buffer.
Covering Fixed Expenses Through Investments
Our goal is to fully cover our fixed expenses with income from investments. Our portfolio mainly consists of real estate, which provides stable monthly income. In the future, we want to diversify our investments by:
Adding ETFs and dividend stocks to generate recurring passive income.
Exploring retirement investing, especially in light of our planned move to Hungary. However, this requires further research due to tax implications.
Moving to Hungary
Reducing Costs by Emigrating to Hungary
We aim to emigrate to Hungary around age 50. The plan is to sell our house in the Netherlands and buy a home in Hungary with the proceeds — fully mortgage-free. This would significantly lower our monthly expenses.
Right now, our expenses are high — mainly due to our car, which is too expensive, and because we drive over 45,000 kilometers per year. The mortgage also puts a heavy burden on our budget.
In Hungary, the cost of living is lower than in the Netherlands. Our FIRE calculations factor in lower housing costs, no mortgage, and fewer car expenses. We expect to drive less there, especially if we live closer to family and spend more time at home.
Expense | Netherlands (EUR) | Hungary (EUR) |
Current average costs | €5,000 | €2,500 |
Estimated costs in 14 years (3% inflation) | €7,600 | €3,800 |
While inflation in Hungary is higher than in the Netherlands, we’ve also factored in exchange rate effects. From 2019 to 2024, this actually resulted in lower average inflation in EUR compared to the Netherlands.
How Much Will We Need?
Based on our current spending, adjusted for 3% inflation, we expect to need about €3,800 per month in the future. However, we’re aiming higher: €5,000 per month. That way, we build in a buffer for higher inflation or unexpected costs.
With 5% inflation, you’ll quickly hit that amount. Plus, this doesn’t account for setbacks or additional lifestyle desires. Fortunately, passive income — like rental income — often rises with inflation, softening the impact.
Our ultimate goal is to fully cover these costs with passive income, such as rental income from real estate and dividends from investments. This gives us financial peace of mind, even if prices rise.
What If We Don’t Reach Our FIRE Goal?
The minimum target of €3,800 per month seems achievable by age 50. But the aspirational target of €5,000 per month is more ambitious. If we don’t make it, we have several plan B options:
Adjust our lifestyle and reduce expenses: We’d rather avoid this, as we don’t want to compromise our quality of life.
Postpone the move to Hungary: By saving longer, we give ourselves more financial breathing room.
Still move, but continue working for a while: This allows more time to build passive income while already enjoying our new life in Hungary.
Even in the worst-case scenario, we’ll still have a solid financial foundation. Whether we stay in the Netherlands or live in Hungary, we maintain control over our choices and quality of life.
Our Path to Financial Freedom
With our Barista FIRE plan, we aim to achieve financial independence by age 50. We do this by managing our money consciously, investing, and moving to a country with a lower cost of living.
In the coming years, we’ll remain flexible. We’ll adjust the plan when needed — because our needs and dreams may change.
We hope our story inspires you to reflect on your own journey toward financial freedom.What does a Rich Life mean to you?And how can you start building that life today?
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