Optimal Finance Daily - Financial Independence and Money Advice 3088: This Is How Much You Really Need to Be Financially Independent by Chris Reining on How to Retire Early
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Mar 28, 2025 Chris Reining, a financial independence expert, shares crucial insights on achieving early retirement by focusing on spending rather than income. He emphasizes that you don't need to be a millionaire; your savings should align with your expenses. Reining discusses the 4% rule for sustainable withdrawals and how lower spending means less savings needed. He also explores the deeper personal growth that comes with the journey toward financial freedom, urging listeners to engage in fulfilling activities along the way.
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Calculate Your FI Number
- Determine your FI number with the 4% rule: withdraw 4% yearly, adjusted for inflation.
- Multiply yearly spending by 25 for your target FI number.
Chris's FI Journey
- Chris Reining aimed for $1M, spending $40,000/year (4% withdrawal).
- In retirement, his spending decreased, and his withdrawal rate is now 2%.
The Spending-FI Relationship
- Financial independence isn't about how much you earn, but how much you spend.
- Lower spending means needing less to save and reach FI faster.