You don’t need a billion dollars. You need a number. A magic number that covers your expenses for 30+ years.
Here’s the secret: most people overestimate what they need. You don’t need to live like a king. You need to live like a slightly fancy peasant with a good espresso machine.
Calculate your annual spending. Multiply by 25. That’s your target. Boom, you’re 40% done.
The 4% Rule Is Your Best Friend (and a Little Boring)
Financial nerds love the 4% rule. It’s simple: you withdraw 4% of your savings yearly. It lasts forever—like a battery bunny with a finance degree.
Example: $1 million saved? That’s $40,000 a year. Can you live on that? Maybe. Combine it with a side hustle or a tiny RV. Suddenly, you’re a retirement ninja.
Fun fact: this rule was designed for a 30-year retirement. If you retire at 55, you might need 40 years. So, tweak it to 3.5% and feel like a genius.
