Read on Twitter
Why are budgets helpful?
Because of the yearly expense data.
Forecasting “How much you need to retire?” is a lot more difficult when you’re flat out guessing.
Imagine you used an app to track what you spent yearly?
Imagine you did this for 5 or 10 years?
(1/4)
Because of the yearly expense data.
Forecasting “How much you need to retire?” is a lot more difficult when you’re flat out guessing.
Imagine you used an app to track what you spent yearly?
Imagine you did this for 5 or 10 years?
(1/4)
That’s a nice sample size to see how your overall expenses have evolved per year.
It answers the question:
How have life events impacted my spending?
E.g.
> new job
> marriage
> baby
> inflation
Use this data to better estimate your true financial independence number.
(2/4)
It answers the question:
How have life events impacted my spending?
E.g.
> new job
> marriage
> baby
> inflation
Use this data to better estimate your true financial independence number.
(2/4)
How do you calculate your financial independence (FI) number?
A simplified method, use 25x expenses.
Ex:
$50K expenses x 25 = $1.25M
Why 25 times? Bc that provides a 4% withdrawal rate of your total value that has shown to last 30 years.
Use it as a starting point.
(3/4)
A simplified method, use 25x expenses.
Ex:
$50K expenses x 25 = $1.25M
Why 25 times? Bc that provides a 4% withdrawal rate of your total value that has shown to last 30 years.
Use it as a starting point.
(3/4)
Want to learn how to get a better estimate? 
(4/4) https://upshotwealth.com/blogs/blog/how-much-money-do-you-need-to-retire
(4/4) https://upshotwealth.com/blogs/blog/how-much-money-do-you-need-to-retire
