Your Financial Freedom Number

The 4% Rule says you can safely withdraw 4% of your investment portfolio annually without running out of money.

The Simple Formula

Financial Freedom Number = Annual Expenses × 25

Example

If you spend $50,000 per year, you need $50,000 × 25 = $1,250,000 invested.

Step-by-Step

Step 1: Calculate your annual expenses (everything) Step 2: Multiply by 25 — that's your target Step 3: Current investments ÷ Target = % of the way there Step 4: Use an investment calculator to estimate time to freedom

Realistic Timelines

| Savings Rate | Years to Freedom |

| 10% | 40+ years |

| 20% | ~28 years |

| 30% | ~18 years |

| 50% | ~10 years |

| 75% | ~5 years |

For Traders

Your trading income can dramatically accelerate this timeline. Every profitable month adds to the portfolio.

But don't count trading profits as guaranteed income for your FI number calculation. Use a conservative estimate based on your 3-year average.