Recently I saw a blogger (probably from Reddit), and the concept of FIRE (FINANCIAL INDEPENDENCE AND EARLY RETIREMENT), and looks like I pretty like that idea: most of us do not need (and cannot) reach financial free, but can be financial independence, after which, one can work more freedom or do not work at all.
- with a saving that is equals to 25X yearly expense, and 4% withdraw rate (in other words return rate to keep the saving stable)
Something to keep in mind
- Increase Income: can reach the needed savings early
- Decrease Expense: reduce unnecessary expenses
- Investment: that is how you get passive income
Start from tracking my yearly expense now.