The Only 4 Numbers You Need To Retire Early (FIRE Movement)

Retiring decades early isn't a result of picking the right stocks or earning a massive salary—it simply requires tracking four specific numbers. In this video, we build a personalized tracker to give you a clear ETA on your financial independence. Here is what we cover to build your early retirement strategy: Savings Rate: How to calculate the speed of your retirement timeline by dividing your monthly invested amount by your take-home pay, ensuring you adjust for FICA taxes and manually add back pre-tax 401k contributions. Annual Spending: The correct way to tally up your recurring and one-off expenses from your last 3 months of bank statements to find your true cost of living. Investable Assets: Why you must focus only on liquid assets (like 401ks, IRAs, and taxable brokerages) and strictly exclude your home, car, or collectibles to get an accurate picture of your wealth. Years to FI (Financial Independence): How to calculate your ultimate FIRE number by multiplying your annual spend by 25, and how to use an 8% growth rate to find the exact distance to your goal. Tracking these metrics in a simple spreadsheet monthly is proven to help you save significantly more than just checking balances once a year. Subscribe to MoneyDecoded for more straightforward strategies on wealth building, passive income, and mastering your money!

Added 23 Apr 2026