The 25X Rule for Financial Freedom

The 25X Rule suggests that by multiplying your current or desired income by 25, you can determine the amount of cash you need to accumulate for financial independence. This principle is based on the idea of achieving a 4% yield on your investments, allowing you to live off the returns without depleting your principal. This approach provides a clear goal for financial planning, ensuring that your investments can sustain your lifestyle and liberate you from the grid of traditional employment. Achieving this financial freedom means you can focus on personal interests, hobbies, and travel without the burden of financial constraints.