# Quick Calculation

Okay, years until financial independence.  We are familiar with this one.

Years needed = amount needed  / savings per year

amount needed = 25 * outgo per month * 12 months  — note:[25 could be 33 if you’re conservative]

savings per year = (income per month – outgo per month) * 12

So for me we have something like

25 * \$2000 * 12 months / (12 * (\$7800 – \$2000))

= 25 * \$2000 / (\$7800 – \$2000)

time in years = 25 * expenses / savings

or

time in unit = expenses  / (inflation adjusted RoR during unit * savings)

If you double the inflation adjusted return, you need half the time.

If you half the expenses, you half the time.

If you double the savings, you half the time.

Historically, the safe bet for RoR is about 3-4%

Let’s just move all the numbers by 20% and see the impact

let’s say expenses is 1, savings is 1, and RoR is 1.  Then let’s move all those numbers by 20% in a positive direction.

1 year if i = spend 1 dollar/ (double my money every year * 1 save one dollar)