Obviously not enough for anyone to retire on.īut let’s say you’ve saved RM 1,000,000 and again get inflation-adjusted returns of 3.5% per year. So for example, if you have RM 100,000 of investments, and get steady returns of 3.5% per year ( EPF-like returns minus inflation), that would mean your passive income = RM 3,500 per year RM 292 per month. Your passive income is more than your expenses How much money do you actually need to retire? How to get there? Let’s dive into the math. The FIRE movement taught me you could actually FIRE your boss much earlier in life. I always assumed that everyone needs to work till they have white hair and back problems. What really blew my mind about FIRE was philosophically it had never registered in my mind that people could retire young. Do it when you’re in your 30s, and you can get featured on CNBC. Money, the cooler it is, because obviously who wants to say F U to their job only when they’re 60? Get there by 45, and it’s a pretty sweet life. What is financial independence?įinancial Independence (FI) is this cool concept where you have enough money invested, that you don’t actually need to work anymore.Ī cruder way of calling it is having “F.U. Here’s seven things I think you would benefit from knowing too. And while I wouldn’t consider myself a FIRE advocate today (I’ll probably never retire myself), I’ve continued to learn from the FIRE movement over the years. From that point onward, I viewed my money and career choices in a totally different light. One MMM article I’ll always remember is “ The Shockingly Simple Math Behind Early Retirement.” “What, I don’t actually have to work until I’m 60? I can have this dream life where I’m still young, and do whatever I want till I’m gone?” It’s a growing group of enthusiasts all over the world who aspire to retire early, by saving and investing large amounts of their incomes. Money Mustache (MMM) is also widely seen as a leading figure of the Financial Independence Retire Early (FIRE) movement. In quite a few ways, he inspired me to write mine. Since then, he’s raised a son, worked on projects purely out of interest, donated hundreds of thousands to charity, and written a world-famous blog. Financially independent - he would never have to work another day in his life. In 2005, Pete Adeney, a 30-year old engineer retired from his day job.
0 Comments
Leave a Reply. |