Tool 05 · Freedom

Your financial independence number

Financial independence isn't about not working — it's about work becoming optional. The classic rule: a corpus of ~25× your annual spending can sustain you indefinitely at a ~4% withdrawal rate.

Your numbers
Your whole household's yearly spending, today.
25× ≈ 4% withdrawal. Use 30–33× for early retirement (longer horizon, more caution).
FI number in today's money
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FI number at age 50
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Required monthly SIP
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What that buys you

Reading the result honestly

The fine print on freedom
It's a compass, not a GPS

A 20-year projection is directionally useful, precisely wrong

Returns, inflation, and your own spending will all differ from today's guesses. Recompute yearly. The point is to know whether you're roughly on a 15-year path or a 40-year one.

The lever that matters

Your savings rate beats your return rate

Going from saving 15% to 30% of income shortens the path far more reliably than chasing 2% extra return — and it simultaneously lowers the expenses your corpus must cover. It's the only variable fully under your control.

Sequence risk

The first years after FI are the dangerous ones

A crash early in retirement, while you're withdrawing, hurts far more than the same crash later. That's why early retirees use 30×+ and keep 2–3 years of expenses in debt — so they never sell equity in a drawdown.

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