How to Calculate Your Financial Independence Number (25x Rule)

If you want to calculate your financial independence number, you’ll have to work backwards to find it. While everyone would love tens of millions sitting there ready for retirement, for most working adults, that number may be far higher than you need. So, if you want to keep living a life you love on your same budget, you’ll need to plan, optimize, and invest for your financial future!

What’s your favorite vehicle to reach financial independence? Do you prefer index funds or something a little more labor-intensive like real estate investing? Let us know in the comments below!

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0:00 Calculating Your FIRE Number
1:39 The "Tools" Necessary for Early Retirement
2:40 The Rule of 25x and 4% Rule
4:00 How Much You'll Need in Retirement
4:34 Investing in Index Funds

[Nola]

Great video. Thanks for making it a quick watch.

[thebestempty]

1 important thing to mention too, the 4% rule does account for inflation. So at year 1, 4% is $40, 000. If inflation was 2%, $40, 000*1.02 = $40, 800 for the '4%' next year.

[mkd]

Great tips. I just need some tips on how to get that million 😅

[veronicahernandez]

But the annual limit is 6500? How can one reach fire using index funds, with that cap. Maybe im missing something. Any help would be greatly appreciated.

[amafid]

There’s only about 250000 videos on this topic. Thanks for the update.