Quote:
Originally Posted by stone hands
Obviously my lifestyle isnt the norm, but as a household we make a combined income of $115k pre tax and our yearly expenses are usually around 45k per year(last year it was 47,791) - 29,698 of that being a mortgage we are trying to pay off as soon as possible, so our "non mortgage" spending has floated just shy of 20k for the last few years. It's amazing what making your own meals and enjoying non expensive hobbies like cycling or a library card or used video games can do for your expenses if you are a homebody
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Thanks for the real-world example. I wish we could come closer to that. I assume you're not eating (much) cat food?
(or caviar)
That's impressive for sure... I assume you're saving a lot then, approx 50% of your annual take-home amount. Which also means, if continued, and you were starting at $0 you could choose "retirement" (whatever that means to you) in 7-8yrs (or less depending on market returns).
Assuming your continued full-year all-in expenses are "only" $45k that puts your FU amount at 25x or about $1.125mil.
If it's "only" $20k/yr all-in expenses then... $500k. In other words, $500k at 4% withdrawal ($20k) makes it possible to not touch your capital and so if your after-inflation returns+fees are greater than 4% annually your capital will grow.