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What is your annual expense?
x20 lean fire
x30 fit fire
x40 fat fire
Subject Expert
You will experience the same failure rate with withdrawals of the same percentages of the portfolio regardless of size. Your expenses being smaller (lean) or larger (fat) will not allow you to retire with a smaller multiple or require a larger one (for the same amount of risk and flexibility), just make the underlying expense amount larger or smaller.
FIRE goal = Projected annual spend before taxes / 0.04.
Before
I would start with strict accounting and tracking of your finances, budgets, forecasts, etc.. Get good at that and then you can better see the levers to achieve your FIRE goals. I forecast out the current and the next year with all anticipated income and expenses. That allows me to make informed spending decisions so that I can still progress against goals. This has worked for me as we are closing in on 8 figures.
Thank you. I will definitely do that.
When I started planning for FIRE, I just wanted to know what our number was. I used the spreadsheet at Mad Fientist and plugged in all the values to get our number. Once I knew what it was, it was the kind of challenge that I enjoyed making progress on every year. Once we reached FIRE, we celebrated- and kept our jobs - but felt much freer and happier. Eventually my husband retired, we moved to our dream home, and I took some much needed time off. But then I got bored and went back to work. I love the independence it’s given us. It’s helped me see what I really enjoy doing. Good luck!