25 Times Annual Income Or Expenses

There is a saying on the amount of money one need to have before considering the retirement from the full time employment. Mutiply one’s desired annual expense by 25 and one can retire if the derived figure is achieved in one’s networth.

There are instance in which some may advocate replacing the annual expense by annual income. I believe that the decision is entirely up to the preference of each individuals as per ser.

During my embankment on the FIRE journey, I used to have the above-mentioned mentality. However, I no longer have such thought. The definition of FIRE figure varies based on different computation. I am of view that lowering the expense is the way to an early FIRE. In addition, FIRE does not mean full retirement. It means the ability to do things which  I like and such things also generate some form of active income along the way.

I feel that I should not concentrate too much on the math behind the financial independence or early retirement. I will be also missing on the big picture. I can choose to do the things which I like now rather than waiting for a few more years just to be safe. It is not worthwhile waiting a few years. Life is short and tide waits for no man.

I am of view that FIRE allows me to be have the right and liberty to be more of myself.  It provides me the gift to become a true me. I can place my passions and hobbies to the forefront of my life in which such interests are given more attention and focus.

I feel that I can add value to such interests and eventually the interests can generate value in terms of satisfication and possibly some form of income along the way.

The passive income which my investment portfolio is currently generating gave me the courage to take that leap. Being in the position where my liability could be covered signifies that I feel confident to strike it out on my accord. There is no need for me to make much though I still keep my full time employment which will generate more fund to my investment portfolio.  I feel more at ease as I do not fear the retrenchment which can come anytime to me.

To each of their own. The most thing is to do things one like.

My two cents worth of my views.


Author: firewtk

A middle-age Singaporean currently having a minimalist and simple lifestyle. I am not longer in full-time employment with effect from 1 May 2019. I try my very best to write one post per day on this blog. The purpose is to share my prevailing thoughts to interested readers. It is up to the interested readers to decide whether they want to take action in embarking on the FIRE journey. I do not gain anything from this blog and it is solely for sharing hopefully for the benefits of all interested reader. WTK

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