Calculate Your FIRE Money
Find out how much money you need when you retire to live a comfortable life.
Lean Fire: Inflation adjusted expense multiplied by 20.
Calculation:
Once you achieve this amount, you can choose to continue to work at a lower income i.e. switch careers, start a business, etc.
This is not enough to retire.
FIRE (4% Rule): Inflation adjusted expense multiplied by 25.
Calculation:
Once you achieve this amount, you can choose to retire.
You can spend 4% of this amount every year. This amount can sustain your lifestyle for 30-40 years.
FAT FIRE (Ideal Goal): Inflation adjusted expense multiplied by 50.
Calculation:
Once you achieve this amount, you can choose to retire comfortably.
You will never run out of money even if you keep this amount in a simple 7% return FD.