Calculate the money you need to stop working

maxrakib43

A simple formula is to multiply your annual costs by 25. The less you spend, the better. We as a family already have considerable monthly costs so the amount we would need exceeds seven figures. A figure like that is a bit intimidating. After this amount you can withdraw 4% each year and thus live off the savings. This formula is not exact because if you start to retire very young, the mattress should be larger.


Personally I look for a mixed formula. Through Phone Number List
my investments such as apartments I want to create sources of income that do not require such an amount of money. I also have Lego and Amazon. Here the ROI exceeds 50% so the necessary amount of money theoretically drops even more. To this I can add (at least in my case) that I will always come up with large and small projects that I will be able to carry out without much effort.



This will generate another extra money although it is clear that for FIRE purists that is not the idea. The reality is that many of the people who follow the movement do not stop working completely and dedicate themselves to projects that they are passionate about. Others even start working again because in the end dedicating themselves to something also gives you social contacts, which is a human need.