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Cool! I just remember it because it was way better than thinking, "Okay I have 50k now." It turns it into something tangible. It spurs you on to afford the next thing on your budget.

Also something to think about is to include any likely taxes on the withdrawal in your budget. So it you are withdrawing $30k a year, are there any taxes on that and to include the taxes in your planned FIRE budget. People often ignore that. I actually did until I realised. That also pushes you to examine the budget more closely because if it goes down by $1, then the amount you need is less by whatever multiple you are using and plus the taxes you save from the lower withdrawal.

Finally, it may also be useful to have either two FIRE budgets or seperate out essential expenditure like Food vs non-essentials like restaurants. This drops the total needed down and you get there faster as it seems more achieveable. Once there, staying in paid employment to afford that vacation or weekly restaurant trip seems okay because you're staying employed for a specific reason but could choose to quit with a more minimal budget. Smaller goals are more likely to be achieved I think and so that two step approach might work better for some people. I know that my budget is 50% extra because of the recreation part of it and I know what the essentials cost too. The smaller figure is comforting.


Thanks for that reminder! I remember thinking that it was a remarkably clever tool. That's something that I probably should consider, and it will also help spur me on to writing out a real budget.

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