How much money do you need to never have to work again. The movement is called FIRE and I have recently spoken about the topic. The idea of not having to work anymore fascinates me. I think I’m possibly not the only one. To make things clear. I like the idea but I also like to work. I like not having the need to do it.
Calculate the money you need to stop working
Calculate the money you need to stop working. A simple formula is to multiply your annual costs by 25. The less you spend, the better. We as a family already have considerable monthly costs so the amount we would need exceeds seven figures. A figure like job function email list that is a bit intimidating. After this amount you can withdraw 4% each year and thus live off the savings. This formula is not exact because if you start to retire very young, the mattress should be larger.
A quick calculation for a family with two children
A quick calculation for a family with two children I’m going to invent some numbers to make things less abstract. Let’s say that the family’s costs are 3,000 euros per month, which gives us about 36,000 euros per year. Let’s consider the different scenarios described above. Live off savings and withdraw 4% annually : the amount needed to retire for this family is 900,000 euros. It’s no small thing. For many, it is still an Phone Number QA unattainable figure. Living off savings and passive income : if the family has invested part of that money in properties that generate net income of 750 euros per month.