February 28th, 2005 - Open Knowledge
Feb. 28th, 2005
04:16 am - Buy a day of freedom
Let's assume that you could live on $12,000/year. That works out to around $33.00 dollars/day. So, to buy a single day's worth of freedom from paid labor costs $33.00 dollars.
How much does a day of freedom cost in perpeuity? Assuming a 4% safe withdrawal rate, a perpetual day of freedom costs $825.00.
1 day: $33
1 week: $231
1 month: $1000
1 quarter: $3000
1 year: $12000
1 day: $825
1 week: $5,775
1 month: $23,100
1 quarter: $69,300
1 year: $277,200
How long would it take to save enough to be completely free?
Let's assume that you're earning (after tax) $2100.00/month. And let's assume that you can live on $1000.00/month. How long would it take you to save up $277,200?
According to this calculator, assuming an 8% return on investment and an initial deposit of $250, if you saved $1052.67/month, you could reach $278,000 in 13 years.
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