The 75% Rule for Lifestyle Creep & Early Retirement - Nat Eliason
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Following the 75% rule can ensure you’re always getting closer to early retirement as your salary increases.
The 75% Rule for Lifestyle Creep & Early Retirement September 9, 2020 Why don’t high-income people retire faster? Some clever Mr. Money Mustache types reduce their spending enough to retire early. But whether someone is making $60,000 or $600,000 a year, hitting early retirement is rare. Which is weird since it’s at least theoretically achievable for any income level. If you invest 25 times your current salary, you’ll be able to live off the returns indefinitely. If your salary is currently $100,000 a year, having $2,500,000 invested in index funds should let you withdraw that $100,000 a year
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