The publication states that we are financially free for life once a 4% annual withdraw of our investments can cover our annual expenditures. The formula's ...HowtocalculatemyFinancialFreedomNumberusingthe4%ruleWhatamountofmoneymakesusfeelwehavereached“financialsecurity”or“financialfreedom”?Doweknowthenumber?Isit500,000?1million?10million?Mostofusarescaredtolookatourcurrentfinancialposition.Somehowitislikeknowingtobeoutofshape;weknowwemighthavegainedweight,butwedon’twanttosteponthescaleandknowhowmuch.Itisdifficulttomonitorourweightifwedon’tmeasureit,andwedon’thaveaspecificgoal;thesamegoesforourfinances.Wemustalsoremindourselvesthatitisdifficulttoachievesomethingwecannotmeasure.Identifyinganumericaltargetcandramaticallyhelp. Let’sbeclear:ifwelivewithinourmeans,ifwehavea“safe”job,careerorbusiness,ifthegovernment/welfareofourcountrylooksafterusincaseofneed, itprovidesuswithasuitableretirementpackage,thencalculatingourfinancialfreedomnumbercouldappearanacademicexercise,anerdcuriosity.Ontheotherhand,ifwefeelourcurrentjoborbusinessmarketishighlyuncertainifthewelfareofourcountrywon’tfullyprovideuswiththenecessarysupport,ifweultimatelywantfullunderstandingandcontroloverourfinancialfuture,itisthencrucialtoidentifyanumerictargetforourfinancialgoals.Our financialgoal andthetimerequiredtoreachitisafunctionof:ourfinancialaspirations:dowewanttoreach“financialsecurity”or“financialfreedom”?ourpresentandfuturelifestyle(averageexpendituresofourhousehold)theperformanceoftheinvestmentswechooseTHESTRATEGYThestrategyforachievingfinancialsecurityand/orfinancialfreedomhasnothingmagical;itisnotsupposedtobeasecret;itis20%inspiration(knowledge)and80%perspiration(execution);Itentailstheoptimalallocationandmanagementofourpresentandfuturefinancialresourcestolivealifeonourownterms.Thestrategyisbasedon2mainpillars: activeincome andpassiveincomestreams.Ourworkisrequiredtogenerateaconsistentflowofcashtobesavedandinvested.Thisfirstincomestreamprovidesthe“seeds”tobeplanted(invested)tosecureafutureharve