SeedTime Money: Financial Freedom for Eternal Impact (2024)

FAQs

How much money do you need for financial freedom? ›

The Financial Freedom Formula Is Simple To Calculate And Understand. According to the FIRE (financial independence, retire early) movement, you need to have 25 times your annual expenses in investments.

Not factoring in any additional income or money you need to set aside for taxes, this $2 million would provide you with an annual income of $40,000. This equates to a monthly income of $3,333. With the reduced expenses as detailed above, this amount could afford you a comfortable retirement lifestyle.

The short answer is yes, $500,000 is enough for many retirees. The question is how that will work out for you. With an income source like Social Security, modes spending, and a bit of good luck, this is feasible. And when two people in your household get Social Security or pension income, it's even easier.

Someone between the ages of 36 and 40 should have 1.9 times their current salary saved for retirement. Someone between the ages of 41 and 45 should have 2.8 times their current salary saved for retirement. Someone between the ages of 46 and 50 should have 3.9 times their current salary saved for retirement.

The premise of the 30-day savings rule is straightforward: When faced with the temptation of an impulse purchase, wait 30 days before committing to the buy. During this time, take the opportunity to evaluate the necessity and impact of the purchase on your overall financial goals.

There's an 80-20 rule for money Dave Ramsey teaches which says managing your finances is 80 percent behavior and 20 percent knowledge. This 80-20 rule also applies to constructing a healthy life. Personal wellness is 80 percent behavior and 20 percent knowledge.

How can I save $1000 fast? ›

While paying down high-interest debt will help you reduce the amount of interest you owe, not having an emergency fund can put you deeper in the red when you have to cover an unexpected expense. “Regardless of [your] debt amount, it's critical that you have money set aside for a rainy day,” Griffin said.

Luke 16:10-13

“Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches?

Philippians 4:19: And this same God who takes care of me will supply all your needs from his glorious riches, which have been given to us in Christ Jesus. Proverbs 10:22: The blessing of the Lord makes a person rich, and he adds no sorrow with it. 2 Corinthians 9:8: And God will generously provide all you need.

But have we stopped to ask ourselves if financial independence is even biblical? To be honest, most of us haven't given it a second thought because we believe. God wants us to prosper financially and to yield what He has given us the best of our ability (Matthew 25:14-30, Colossians 3:23-24).

You'll know you've achieved financial freedom when you have enough income streams or assets to cover your basic living expenses, as well as any additional discretionary spending you desire, without having to rely on a traditional job or career.

Key Takeaways

The 4% rule says people should withdraw 4% of their retirement funds in the first year after retiring and take that dollar amount, adjusted for inflation, every year after.

It's called the 25 times rule, and it's very simple. You multiply your annual spending by 25, and that is the minimum amount of money you would need invested to fund your lifestyle without working. (A word of caution: Like with any rule of thumb, the 25 times rule is not precise.