Financial Independence #
What? #
Accumulating enough assets such that the passive income generated from them exceeds your cost of living. A rough estimate often used is the “4% rule”: it states that you should expect your assets to generate 4% of their value in income every year. This means if you have $1 million in assets, you should expect at least $40k a year in income from those assets.
Why? #
So you can pursue what you find is most valuable in life. Some projects that FI has enabled:
Estimating Progress #
Lots of tools have popped up over the years online to help with this. Some that look promising to me:
Categories: Investing And Finances