Author Topic: Respectable Amount Of Annual Freedom Points  (Read 802 times)

mr_orange

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Respectable Amount Of Annual Freedom Points
« on: September 01, 2015, 06:55:31 PM »
I have started thinking of a "freedom point" as 1% of the total stache needed for FIRE.  So with a 4% WR and a given amount of annual expenses targeted for FIRE a freedom point would be:

(Annual Expenses / .04) * .01 = 1 Freedom Point

You'd obviously need 100 of them to get to FIRE and it is simply one percentage point of your total stache needed. 

What is a respectable amount of points to accumulate in a year to be considered Mustachian?  Is 10 enough?  That should get you to freedom in 10 years. 

seattlecyclone

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Re: Respectable Amount Of Annual Freedom Points
« Reply #1 on: September 02, 2015, 12:12:40 PM »
Given that definition, one "freedom point" is a quarter of your annual expenses. 10 of them then implies that you save 2.5 times your annual spending, or a savings rate of 71.4%. Those of us with higher incomes should be able to get there, but it's not realistic for everyone.