What is your Financial freedom number

By Jenny Brown

Are you nearing retirement and starting to think about what financial freedom really means for you? If so, you’re not alone. Many pre-retirees are beginning to consider their “financial freedom number” – that golden amount of savings that can afford them the lifestyle they desire without the necessity of a regular paycheck.

Understanding your financial freedom number involves a careful assessment of your current expenses and lifestyle expectations. Begin by scrutinising your monthly budget: housing costs, groceries, utilities, healthcare, leisure activities, and any other expenditures that contribute to your standard of living. Factor in additional expenses that may arise in retirement, such as increased healthcare costs or travel plans.

Once you’ve determined your monthly expenses, consider how many years you’d like to have covered by your savings. Some pre-retirees aim for a comfortable buffer of several years’ worth of expenses, while others may seek indefinite financial security. Whatever your preference, it’s essential to plan for both the expected and unexpected costs that retirement may bring.

With your expenses and timeframe in mind, you can calculate your financial freedom number—the total amount of savings required to sustain your desired lifestyle without relying on employment income. While the prospect of reaching this goal may seem daunting, it’s certainly achievable with careful planning and disciplined saving habits.

Client Experience: Joan, 65 years old.

Joan, a client on the brink of retirement, recently approached us to assess her financial situation. She had been grappling with anxiety and sleepless nights, worried about whether she had enough money to retire and afford the lifestyle she desired. Through careful planning and projection, we showed Joan that she could indeed afford to fulfil her retirement dreams and more. Taking that special holiday and buying that dress was all within her reach. Our ongoing collaboration and meticulous planning alleviated her anxieties, allowing her to embrace retirement with confidence and peace of mind. Joan’s experience underscores the importance of proactive financial planning in achieving a worry-free retirement.

Take advantage of retirement planning tools and resources to help you navigate this process. Consider consulting with a financial adviser who can provide personalised guidance tailored to your unique circumstances and goals. By taking proactive steps to understand and pursue your financial freedom number, you can pave the way for a fulfilling and worry-free retirement.

Ultimately, your financial freedom number represents more than just a monetary figure; it symbolises the opportunity to embrace a new chapter of life with confidence and independence. So, as you approach retirement, take the time to assess your financial situation and chart a course toward achieving your vision of financial freedom. Your future self will thank you for it.

Ready to discover your financial freedom number? Reach out to the JBS Financial Team today to start planning for your worry-free retirement!


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