Your FI Number
One number changes everything. Your FI number is the portfolio size where work becomes optional. Let's find yours.
The 25x Rule Explained
FI Number = Annual Expenses × 25. That's it. This comes from the 4% safe withdrawal rate established by the Trinity Study — a landmark piece of financial research showing that withdrawing 4% of your portfolio annually has historically sustained a 30+ year retirement.
The beauty is that your FI number is driven by your expenses, not your income. A family spending $40K/year needs $1M. A family spending $100K/year needs $2.5M. Same formula, very different targets — which is why expense optimization is so powerful.
Reducing Your FI Number
Every $100/month you cut permanently reduces your FI number by $30,000.
| Optimization | Monthly Savings | FI Number Reduction |
|---|---|---|
| Cancel unused subscriptions | $50 | -$15,000 |
| Cook at home 3 more nights/week | $200 | -$60,000 |
| Switch to a used car | $350 | -$105,000 |
| House hack or downsize | $500 | -$150,000 |
| Optimize insurance & phone plans | $100 | -$30,000 |
Total: $1,200/mo in savings reduces your FI number by $360,000.