Simple method to calculate your FI target

Perhaps you’re seated there wondering how long this journey will take. You need to know the exact number of years it’ll take you to reach this coveted point of financial independence. Well, this depends on three things.

First, how much you spend annually, second, how much you save annually and third, how much you invest. You need to determine a reasonable amount of money that you would spend per year without putting a dent on your savings.

Also, the total amount of money you’ve amassed should add up to at least 25-30 times your annual spending. Stop gasping people, that’s still a modest figure.

Next step, how much are you willing to save? Of course, the more you set aside annually, the faster you reach that destination.

As usual, if you have any questions, Ask the Fellow!

 

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