Published: September 24, 2025

Save More or Earn More on the Path to FI?

Save vs Earn choices on the FI journey

Ask anyone in the FI community how to reach independence faster and you’ll usually hear one of two answers: cut your spending or grow your income. Both approaches can work, but each comes with trade-offs. The real key is knowing which lever makes the most difference in your situation and remembering there’s also a third option in Coast FI.

The case for saving more

Reducing expenses has an immediate and double impact. First, every dollar you don’t spend is one more you can invest. Second, lowering spending reduces the total size of your FI target. For example, trimming $500 a month doesn’t just boost savings now, it lowers the annual spending you’ll need to cover later. The caution: taken too far, frugality can squeeze the joy out of the present and create burnout.

The case for earning more

On the other hand, growing income can accelerate FI dramatically. Raises, promotions, side hustles, or career pivots can all increase the gap between what you make and what you spend. That larger gap is where FI progress lives. The risk here is lifestyle creep, if spending grows as fast as income, the benefit disappears. Without intentional guardrails, higher earnings alone don’t guarantee independence.

Enter Coast FI

Coast FI provides a third path. Once your invested savings are large enough that compound growth can carry you to financial independence by your target age, you no longer need to save aggressively. Instead, you can “coast” by maintaining your investments and covering only current expenses. This can mean taking a lower-stress role, shifting to part-time work, or focusing more on family and personal goals while still staying on track for FI.

How to decide which lever to pull

  • Start with an honest snapshot of your Net Worth.
  • If expenses are eating most of your income, cut back until you have breathing room.
  • If your spending is already lean, look to income growth as the faster path forward.
  • If you’re ahead of schedule, explore Coast FI to buy back time and reduce pressure.

Final thoughts

Financial independence isn’t an all-or-nothing choice between saving more or earning more. The best strategies often blend the two, while Coast FI adds a flexible middle ground. The real goal is consistency. The plan that you can stick to year after year — without sacrificing your health, relationships, or peace of mind — is the one most likely to get you there.