Is Your FIRE Number TOO High? (Can You Retire Sooner?)

Episode #657
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What’s your financial independence number (FIRE number)? Are you being too conservative, or are you cutting things close? Do you even have one? Today, we’re taking a deep dive into this hotly debated topic to help you build a nest egg that will support your early retirement!

Welcome back to the “BiggerPockets Money” podcast! How much money do you actually need to retire? For years, the four-percent rule has been the “official” stance of the FI community. But why is it, then, that so many people continue saving and investing when they can comfortably retire? In this episode, Scott and Mindy talk about their own FI numbers, how they calculated them, and how their financial positions have evolved over time. You’ll learn whether the four-percent rule still works today or if you need a larger buffer!

If you’re worried about inflation, one of the best things you can do is keep your living expenses in check. This might seem out of your control, but there are several ways to either lock in certain costs or eliminate them entirely. We’ll discuss the many advantages of a paid-off house, self-managing your rental properties in retirement, and a one-time investment that could help you save thousands of dollars over your lifetime!

00:00 Introduction to FI Number
01:28 Personal Experiences with FI Numbers
03:49 Adjusting FI Numbers Over Time
08:23 Real Estate and FI Numbers
13:02 Calculating FI Number with Evolving Expenses
22:08 Budgeting and Spending Controls
29:16 Special Considerations for FI Numbers