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Paano Kalkulahin si Lean FIRE

Ano ang Lean FIRE?

Lean FIRE is a form of financial independence achieved on a very frugal budget, typically below $40,000/year. It requires a smaller portfolio but demands strict spending discipline.

Pormula

annual_spending = (annual_expenses / withdrawal_rate); FV_needed = annual_spending × 25 (4% rule)
expenses
Annual expenses ($) — Annual spending target
wr
Withdrawal rate (%) — Safe rate to withdraw yearly (typically 3–4%)
portfolio
Portfolio needed ($) — Total amount needed for retirement

Step-by-Step na Gabay

  1. 1FIRE Number = Annual Expenses × 25 (4% safe withdrawal rate)
  2. 2Lean FIRE targets expenses 20–40% below average
  3. 3Typical Lean FIRE budget: $25,000–$40,000/year
  4. 4Geographic arbitrage (lower cost of living) is common

Mga Nalutas na Halimbawa

Input
$25,000/year lean expenses
Resulta
FIRE number $625,000
Input
$30,000/year
Resulta
FIRE number $750,000
Input
$20,000/year (very lean)
Resulta
FIRE number $500,000

Mga madalas itanong

What is Lean FIRE?

Retiring early on low expenses (e.g., $25K–40K/year). Less savings needed than Fat FIRE.

Is the 4% rule safe?

The 4% rule (withdraw 4% annually, adjusted for inflation) has about 95% success over 30 years. More conservative: 3–3.5%.

How do I know my annual expenses?

Track spending for 6–12 months, include taxes, healthcare, insurance. Round up slightly for safety.

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