shockingly simple math behind early retirement

Think of it this way if your take-home pay is $1000 and you were not saving any of it you have a savings rate of 0% and are on a path of working well into your 70’s or beyond. You get the idea, the more you save the faster you reach Financial Independence. If you save 75% of your take-home pay, it will take approximately 7 years for you to become financially independent. If you save 5% of your take-home pay, it will take you 66 years to become financially independent.

The shockingly simple math aims to tell you how long it will take you to reach Financial Independence given your current savings rate. Money Mustache Shockingly Simple Math Behind Early Retirement. “If you can manage to earn more money and invest it wisely, you have the potential to reach Financial Independence decades sooner.” While some people have turned these platforms into a full-time job, others (like myself) use them to earn a little bit of extra money on the side aka a“side hustle”.Ī question I see debated by some within the Financial Independence community is whether it is necessary to have a side hustle to reach financial independence?īefore I give my take on that question, let me start by answering an easier question, Will a side hustle help you reach Financial Independence faster? Yes. We live in a period of rapid technological change that has paved the way for the gig economy (think Uber) and the sharing economy (think Airbnb). Side hustles are all the rage these days. Side Hustles Can Help Reach FI Faster, but are they Necessary?

Shockingly simple math behind early retirement