63 sats \ 1 reply \ @criptopanas 9 Mar \ on: Stackers Who Budget meta
Financial education is a very interesting topic, that's why you got so many answers. I downloaded a excel template from the web site Mr. Money Moustache and I customised it to show some more personal info.
I added my personal portafolio and I could know how far am I from the FIRE number.
If you don't know about Financial Independence Retiretment Early and the formula behind, here is a very short explanation.
In order to reach the FIRE number you need to know your monthly expenses and multiply this number by 300.
When you reach the FIRE number, they say that you could withdraw 4% of the portafolio to pay your expenses, and you'll never consume your capital.
IMO it's a very good topic to explore.
Don't be afraid to calculate your FIRE number. It's a good goal to set.
Calculate FIRE number then adjust for inflation? If I want to retire in 20 years, assuming 15% inflation, that would be 1/16th purchasing power in 2 decades.
(Rule of 72, divide by inflation rate and that is when money is cut in half, every 5 years at 15%)
Multiply monthly expenses by 300, then multiply by 16 (to retire in 20 years). I’ll need $100M, which is about 4x what I thought I would need.
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