What Is Your FI Number – How Much Money Do You Need


Your Financial Independence number, or your FI number, is a very important metric when you want to become financially independent and  retire early.

Let’s go into how to calculate your financial independence number, so you know exactly how much money you need to be free!

Simply put, your FI number is entirely based on the expenses you have when you’re financially independent.

If you have no idea what your life will look like when you’re financially free or have zero indication of your expenses, you can look at your current expenses and save for retirement.

Personally, I use the 4% safe withdrawal rate. This means that every year I get 4% of my portfolio to live on.

The basic formula: FI number = your yearly expenses / safe withdrawal rate.

Your FI number represents your ticket to how your life down the road plays out.