![]() This calculation is based on the principle that 4% is a “safe withdrawal rate”. ![]() ( How to calculate your annual expenses).įinancial Freedom Number = Annual Expenses x 25 Simply, your Financial Freedom number is calculated by multiplying your average annual expenses by 25. How to calculate your Financial Freedom Number / Financial Independence Number Knowing how to calculate your Financial Independence Number “Fi Number” is critical. Even if you want to retire at 67 or not at all, Financial Independence is a great goal for everyone due to the freedom and peace of mind it provides. The truth is some people have managed to reach Financial Independence (even a high-expense retirement or “ FatFIRE“) in their 30s or earlier. Retirement is often associated with being age 65-67. Once you are financially independent, you can choose to continue working or not. Financial Independence is often associated with retirement. Do you know your savings rate - the key to Financial Freedom? □ What is Financial Freedom (Financial Independence)? Do you have to Retire Early?įirst of all, what is Financial Freedom aka Financial Independence (the “FI” of the “ FIRE Movement”: Financial Independence Retire Early).įinancial Freedom / Independence is reached when you have accumulated enough income-generating investments that you can live off that income alone rather than being dependent on job income. ![]() Do you know how to calculate your Financial Freedom Number (or Financial Independence “FI Number”). ![]()
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