146. Do You Need to Know Your Financial Independence Number?

See here for full show notes

The financial independence number is the amount of money a person needs to retire or not work again. Using information from the Trinity study, linked in the show notes below, we can find out our FI number by taking our annual spending and multiplying by 25.

I’ve found knowing my FI number incredibly motivating in saving and knowing what my financial goals are. Michelle, on the other hand, feels that people place too much importance on the FI number. She finds that people use the FI number to trap themselves in a job or stay in a mediocre situation. 
Today on the podcast, Michelle and I discuss the FI number and debate its importance. Don’t worry, there will be no hair-pulling or kicking each other’s shins. 

Show notes

• The Trinity Study: Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable
• Mr. Money Mustache’s take on the Trinity Study- The Shockingly Simple Math Behind Early Retirement
• Grant Sabatier author of Financial Freedom
• Cody Berman co-host of The Financial Independence Show
• Navigating the Friend Recession: Building Stronger Communities, a conversation with Doc G of Earn and Invest
• Sunrise Sun Lamp
• Choose FI episode 461, discussing community and Nick Gray’s 2 hour cocktail party
• The 2-Hour Cocktail Party: How to Build Big Relationships with Small Gatherings by Nick Gray

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