Can you live off your investments/savings?!

Broken_Biscuits

Although not an entirely flawless plan... I like to take a few weeks off a year and live as I would imagine I would if I retired early. Visiting friends, getting out and doing things but not going crazy on spending. Living as I would if those 2 weeks were not a holiday but a permanent lifestyle.

The best time to do it is just now. 2 days of bank holidays means you can book 8 days off work and get 16 workless days in a row ( based on a usual Monday to Friday pattern)

At the end of it divide total spend by total days off, x 365. I’ve done it 4 years in a row now. The numbers are always a bit different. But were within a range of about 5k for the year.

If you make a plan on the 4% rule and find your living expenses are £5k short , you need an extra £125k to draw down from!

It’s good to plan for early retirement, but the numbers you think you will need should be tested... especially if you are leaving a career path that would be hard to get back into at your current pay following a failed attempt at living off your savings!