Let's talk Financial Freedom numbers

"If you could change anything about our life, what would it be?"

–– “Not much. Though, getting back our health from our 20s would be nice! 😅”

Every so often, we ask ourselves this question to check if we’re still building a life we truly enjoy. 🩵

Oddly enough, getting rich overnight doesn’t appeal to us.

Maybe it’s because we both came from humble beginnings and are charting our own path to financial freedom. 🪨⛏️

We find joy in tackling challenges and hitting goals together. 👩🏻‍🤝‍👨🏼

And with each step forward, we also find gratitude. That fuels compassion for ourselves and others, keeping us grounded through it all. 🙏

So as long as our answer is “Not much,” we know we’re on the right track. ✨ Even after all the ups and downs, we’re grateful for where we are.

As we work hard to gain more freedom—in location, career, life choices, and health—we’ve realized success isn’t a final destination (yep, it’s that cliché).

We’re already living a lifestyle we love, and it keeps getting better. 🤭

How about you? How would you answer that question? 👀

In this letter 💌, we’ll share how we calculate our Financial Freedom number 🧮

🧮 The 4% Rule

The 4% rule is a popular guideline in the financial freedom community. It’s based on historical market data suggesting a 4% withdrawal rate should sustain your portfolio for 30+ years, accounting for inflation.

Want to nerd out on the science behind it? 🤓 You can read up on this article.

Here’s how it works 👨🏻‍🏫

1. Calculate Your Annual Expenses

   Be real—and maybe even a little paranoid. Go for the bigger number so future-you can relax!

2. Multiply by 25 – Multiply this number by 25 (the inverse of 4%) to get your Financial Freedom number.

   • Example: If your annual expenses are $40,000, your Financial Freedom number is $1,000,000 (40,000 x 25).

3. Once you have your number, that’s your net worth goal!

   We use this app to track our net worth and estimate when we’ll get there.

But we don’t follow the 4% 🤣

We went extra extra extra conservative calculating our Financial Freedom number. Technically, we’re already there with the 4% rule. ✨

But honestly, that number’s is a moving target because life’s unpredictable. 🔮

So we prefer the 3% rule. Same formula, just multiplying annual expenses by 33 instead of 25. Better safe than sorry, right? 🤌

And even more conservative: we don’t even count on compound interest or property appreciation. Let’s say we like the surprise of hitting our number earlier than planned. 🤭

Feeling like your financial freedom number is impossible to reach? 😵

Remember, a number is just a number—your lifestyle is personal!

Ever heard of BaristaFIRE?—It’s a type of FIRE where you reach partial financial independence and cover extra expenses with part-time or low-stress work. It’s all about flexibility and less financial pressure.

Check out other types of F.I.R.E to find the one that best fits your lifestyle. 😉

Hope it's helpful for your journey to Freedom 🙏

Love you to freedom and back, 🫰

Angie & Tyler

Things We are Loving Right Now ❤️‍🔥

🌱 Thrive Time

• 📝 Quick & sweet daily journal: Tyler’s been journaling since high school, but his old entries leaned negative—he only wrote during tough times. Now, with a daily structured journal, he’s capturing both good and bad moments, with more good than bad. 🤭

  The journal also comes with a 5-year view, so starting his second year, he can look back and see a fuller, more positive picture of life. 🥹

• 🖋️ Go analog: With everything going digital, there’s something extra special about putting pen to paper. 🤌

  For his morning ritual, Tyler uses a fountain pen in his five-year journal—the flow and weight make it sooo satisfying!✨ Plus, it’s more eco-friendly than disposables. ♻️