I set mine by math — classic formulas and withdrawal rates. But I’m curious how others did it. Did you calculate it, or picture the lifestyle first and work backward?
Did you set your FIRE number by math, or by lifestyle?
byu/Adventurous_Sun9021 infinancialindependence
Posted by Adventurous_Sun9021
15 Comments
By maths based on lifestyle.
Are you saying you set a number and making your lifestyle work for that number, rather than “building the life you want to life, and save for it?”
I did the math plus now I’m tracking my lifestyle and spending for 2 years. That gives me enough data to set my baseline, see where I spend more, what are my fixed costs, etc.
I know that I’ll get some side income in the future too, so even if I’m a little over 4%, I should be fine.
What?
By ChatGPT. Does that count? /s
Math! Going with the 40 * <lifestyle cost>. Would I ever reach it. Maybe not with AI probably depreciating my job. Buuuuuittt. It’s a goal I hope to accomplish and I wish everyone luck/patience towards all our goals !!
With kids, by current lifestyle. I’m too far from having them out of the house to imagine or do maths on another lifestyle.
I based the math on my current spending plus health insurance and some padding.
My budget was what I was spending pre-retirement with adjustments for post-retirement things like health insurance. Then divide by desired withdrawal rate to get savings required.
Following general guidance based on Fidelity recommendations. 1× your current income by 30, 3× by 40, 6× by 50, 8x by 60, and 10x by 67.
My goal is to overshoot these numbers while not factoring in pensions (X2) or SS into the equation.
If I’ve learned one thing in my life, it’s that you really can’t rely on math to get you through it. Life is messy.
Lifestyle always, and I mean **always** trumps math.
Lifestyle and math.
Math based on my pre-retirement lifestyle.
Math is my lifestyle
I set an income replacement number based on my current and forecast budget.