Spending Level

Financial independence as a function of savings rate has been covered a lot.  In the top two rows of the chart below, we can see the # of workings year which corresponds to each savings rate (60% savings is 13 working years, 80% savings rate is 6 working years, etc.).

But we live in a world with taxes and with a limited number of high income jobs.  We only have about 40 years of good health for working.  Also, some of those high income jobs are very stressful and unpleasant.  As my savings punishment chart has evolved, I noticed that the spending level has popped out to me as the more interesting metric.

E.g. At the \$1000 spending level, a person will retire within 20 years no matter if they are at \$50k income, \$100k income, or \$150k income.  The spending level implies a range of working years.  Let’s pretend \$150k max income.

\$1000 = 6-20 working years

\$2000 = 9-28 working years.

\$3000 = 15 to infinity

\$4000 = 19 to infinity

\$5000 = 28 to infinity

So I want to make a chart where you start with your spending level, and then it shows you clearly what your retirement range is depending on your income… and maybe your current net worth.