Love all the info! I have a quick question though, when it says to calculate your annual expenses x 25, is that including the amount you are setting aside for savings, or only the amount you are actually spending?
Excellent question! The FI number calculation is based on your total annual expenses, including both your spending and your savings contributions. This gives you the total amount needed to sustain your lifestyle.
Calculating your FI number is crucial, but don't get too bogged down in the details. The key is to have a solid estimate that you can use to guide your financial planning and investment strategy.
Remember, the 25x rule is a general guideline, not a rigid formula. Your actual FI number may be higher or lower depending on your specific goals and circumstances.
Treating retirement as an equation takes the emotion out of it. It becomes a rational, data-driven exercise rather than simply waiting for a magical age. Taking control of the math empowers you to create the retirement you deserve.
I retired at 55 in 2022. The process is slow but rewarding. Living simply below your means is paramount for saving and investing. The ship many are waiting to come in never will, you have to send it out first.
You're welcome Val! I'm glad the insights were valuable. Sharing knowledge is a passion of mine, as I believe the more we learn, the better we can all become!!
The idea came from immigrants who left for a different country or region for economic reasons, but only a minority succeeded. They lost the chance to live a fulfilling life with family and friends, and at best, they returned with a small capital to start a modest business and continue working. The alternative is to find a job that provides enjoyment, compatibility with a well-rounded life, and where retirement is not seen as a final goal.
Love all the info! I have a quick question though, when it says to calculate your annual expenses x 25, is that including the amount you are setting aside for savings, or only the amount you are actually spending?
Excellent question! The FI number calculation is based on your total annual expenses, including both your spending and your savings contributions. This gives you the total amount needed to sustain your lifestyle.
Calculating your FI number is crucial, but don't get too bogged down in the details. The key is to have a solid estimate that you can use to guide your financial planning and investment strategy.
Remember, the 25x rule is a general guideline, not a rigid formula. Your actual FI number may be higher or lower depending on your specific goals and circumstances.
Can I ask why it includes your current level of savings as they won't be nessesary in the future will they?
Appreciate that.
Today l'll be introducing my subscribers
to ahuge & p.r.o.f.i.t.a.b.I.e l.n.v.e.s.t.m.e.n.t
𝘁𝗲𝗹𝗲𝗴𝗿𝗮𝗺 👇🏻
Andrewinsight
Love the actionable tips and reminder retirement is not an age it’s an equation based on math! Great post.
Treating retirement as an equation takes the emotion out of it. It becomes a rational, data-driven exercise rather than simply waiting for a magical age. Taking control of the math empowers you to create the retirement you deserve.
Thank you Jordan!
Appreciate that.
Today l'll be introducing my subscribers
to ahuge & p.r.o.f.i.t.a.b.I.e l.n.v.e.s.t.m.e.n.t
𝘁𝗲𝗹𝗲𝗴𝗿𝗮𝗺 👇🏻
Andrewinsight
I retired at 55 in 2022. The process is slow but rewarding. Living simply below your means is paramount for saving and investing. The ship many are waiting to come in never will, you have to send it out first.
Congratulations on your early retirement! Living below your means and diligently saving/investing are essential habits!
Appreciate that.
Today l'll be introducing my subscribers
to ahuge & p.r.o.f.i.t.a.b.I.e l.n.v.e.s.t.m.e.n.t
𝘁𝗲𝗹𝗲𝗴𝗿𝗮𝗺 👇🏻
Andrewinsight
Andrew, thanks for compiling the wisdom in this post. Bookmarked and much appreciated.
You're welcome Val! I'm glad the insights were valuable. Sharing knowledge is a passion of mine, as I believe the more we learn, the better we can all become!!
Great newsletter! Worth the read 🙌
If you’re looking for the investments to get you to point B as described in Andrew’s post, check out my business newsletter!
Appreciate that.
Today l'll be introducing my subscribers
to ahuge & p.r.o.f.i.t.a.b.I.e l.n.v.e.s.t.m.e.n.t
𝘁𝗲𝗹𝗲𝗴𝗿𝗮𝗺 👇🏻
Andrewinsight
The idea came from immigrants who left for a different country or region for economic reasons, but only a minority succeeded. They lost the chance to live a fulfilling life with family and friends, and at best, they returned with a small capital to start a modest business and continue working. The alternative is to find a job that provides enjoyment, compatibility with a well-rounded life, and where retirement is not seen as a final goal.
Appreciate that.
Today l'll be introducing my subscribers
to ahuge & p.r.o.f.i.t.a.b.I.e l.n.v.e.s.t.m.e.n.t
𝘁𝗲𝗹𝗲𝗴𝗿𝗮𝗺 👇🏻
Andrewinsight
What a wonderful comprehensive and easy to read actionable post, thanks