### FI Calculator

FI Calculator Use this calculator to estimate the length of time it will take to reach Financial Independence. Experiment with the inputs to see what levers you can pull to optimize your path.
Enter Your Information: Baseline Alternative Difference
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FI Information:
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This calculator was created as a tool to help you evaluate the effect of different inputs to your path to Financial Independence. It uses some fancy math to generate a very precise number for your Years to FI, but don't be fooled: the real world is not so perfect. You are unlikely to save and spend exactly the numbers you estimate every year. Even if you are a budgeting ninja, the returns on your investments and the rate of inflation will fluctuate in the short term even if they average out over the long term.

Additionally, the calculator uses many simplifying assumptions to get you up and running with a directional answer, rather than filling out volumes of tax return like details to hone the precision. So instead of a final answer, use this calculator to pull different levers and see what effect they have. Some may surprise you. Let me know in the comments what interesting things you discover while using the calculator!

Notes and simplifying assumptions:
• The calculator assumes all your Annual Savings and Initial Investment Balance are being invested and generating the specified Investment Growth Rate. Don't include cash or other "assets" that don't generate a return.
• The Annual Expenses and Annual Savings amounts you enter will both be carried forward, adjusted by the Inflation Rate.
• Your Stash Rate is defined as Annual Savings over Annual Expenses, as described here.
• The Target FI Number (Real) is defined as your Annual Expenses over your Withdrawal Rate, as described here.
• The Target FI Number (Nominal) is what target will have grown to due to the Inflation Rate by the time you reach it.
• The Real CAGR is your portfolio's annual Investment Growth Rate adjusted by the Inflation Rate. The Real Growth Rate is this same number if compounded continually instead of annually, as used by the calculator.
• At some point on your journey to FI, the returns being generated by your wealth each year will surpass the amount you are saving. This is labelled as the Crossover Point.

### Thrifty Thursday - Save Thousands on Your Phone Plan

Recurring expenses are insidious.  Companies love signing you up for subscription services as it means a consistent revenue stream by default.  The burden is on the consumer to take action, but momentum and inaction usually win out and the payments keep getting made. Taking a hard look at these subscriptions and other recurring payments can be very effective in reducing annual expenses, thereby lowering your Target FI Number and leaving more money for saving and investing .   Some expenses that don’t bring enough value can be eliminated.   Others can be greatly reduced with a little intentionality (just get a month or two of that streaming service to binge your favorite show, no need to leave it renewing for the whole year!)   However, there are some that are necessary but we can work on reducing their impact. One of my favorite hacks is switching to a low-cost cell phone plan offered by a Mobile Virtual Network Operator.    MVNOs lease bandwidth on existing cell towers ins

### Intentional Spending

Your spending is an important factor in your financial independence journey. It effects the rate at which you can save and invest while in the accumulation phase and is also a critical factor in calculating your Target FI Number. When accumulating wealth, the amount you can save and invest is a simple calculation: what you make minus what you spend.  Like many of the levers we talk about, your spending has a non-liner effect on your FI journey.  Spending slightly less also means saving slightly more and both of those quantities are found in the formula for Stash Rate , leading to a multiplied effect. $$Stash Rate = {Annual\ Savings \over Annual\ Expenses}$$ As we saw in the Stash Rate article, decreasing expenses leads to an exponentially increasing rate of wealth building. On the other side of financial independence, the level of spending in your drawdown phase directly determines your Target FI Number.  Target\ FI\ Numbe

### Thrifty Thursday

Introducing Thrifty Thursday. On Thursdays, I’ll post a quick article with a tip or life hack to help with Intentional Spending . These will fall into three basic categories: Freebies are life hacks to get something for nothing! Maybe there’s no free lunch, but there are plenty of things you have already paid for in one way or another and just need to take advantage of, or that are being offered in hope of future business. Cost Cutters are the things we all need, that you are probably already buying in some form, but cheaper! Worth It are things that might not look like savings up front, but could be worthwhile investments, eventually leading to more savings. They may also be actual splurges, but with a good value and totally worth it! Check out the articles so far: Freebies The Library Cost Cutters Hack your Housing Save Thousands on Your Phone Plan Worth It Upgrade to LE