I thought I need $7 million to retire but once I pay off my house, my spending will go down - do I actually need less money?

The article discusses the principles of Financial Independence, Retire Early (FIRE), highlighting the importance of accurately tracking expenses to ensure savings last. It presents the 4% rule for safe withdrawal rates and illustrates its application with a Redditor's financial situation. The Redditor realizes he can reduce his retirement savings goal significantly after assessing his mortgage and spending patterns, showcasing that proper financial calculations can lead to earlier retirement. The piece underscores that understanding both income needs and expenditures is crucial for sustainable financial planning.

A $1 million pile might feel safe, but if you spend $50,000 yearly, it will be gone in 20 years, especially with inflation.

Crunching the details beats hoping you've saved enough.

A more conservative 3.5% SWR meant that to retire, the Redditor would need just $5.8 million instead of the initial $7.1 million.

It's essential to know your expenses cold; screw that up, and your savings won't last.

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