[tachibana]

It's a function of percentage income saved, not amount earned. The formula is (income / investment rate / percent income saved). If my investment rate is 4%, I need to save 25 years worth of salary. Saving 50% of my salary looks like I would need 50 years on the surface. However, my portfolio generates income from day 1, so it's actually a lot faster than it seems.

Just for reference, I was living on less than $750/month until I got married. The companies I worked at had plenty of free food. I didn't need a gym membership because the handyman work I did on my investment properties was more than enough. Until we had kids, my spouse and I were still able to survive on less than $1,000/month. We are based in the south SF Bay Area. We had 100% income replacement by our mid-30s.

[hey_mickie]

I really appreciate the details! Out of curiosity, how did you manage to only spend $750 a month to pay for housing, utilities, phone (you mentioned food was free) in south SF Bay Area?

[tachibana]

Digging through my old bank statements: - $500/month for rent and utilities by splitting 1 bedroom apartment with roommate) - $30/month for my cell phone plan - $100-150/month for a car 15-year old beater at the time. Mostly gas and minor maintenance - $70/month in spending money

[twox2]

Thanks for that additional context!