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My Money Backstory, Hollywood, Addiction, Suicidal Depression, Tax Evasion, Becoming a Millionaire & More | Episode 48

Fit Rich Life

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How to Calculate Financial Independence

Being financially independent means that like you never have to work for money. But basically it means like you can live for the rest of your life without earning another dollar from a job. So if you know, I spent $6,000 a month like basically at 72,000 a year and that means you need 1.8 million invested in broad base index funds. And you can live off of that like 4% of the dividends that an interest and growth those index funds throw off for at least 30 years. That's 0.04 divided by 12, that's five grand a month. Because I got myself below that. It's pretty tough to do in this area.

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