Read time: 3.2 minutes
I wasn’t expecting this at all.
A LOT of y’all responded to my email last week and shared what “financial freedom” meant to you.
It’s taking me a bit longer than expected to reply to everyone’s emails so thank you in advance for your patience :).
One question that kept coming up was: “how do I know how much money is enough?”
When I first took my finances seriously, I stressed over every penny. I bailed on friend hangouts, stayed home watching The Walking Dead, and did everything I could to save money…. Soon working towards financial freedom felt like a trap.
That’s why today I want to help you figure out how much money you actually need to achieve financial freedom.
How much do you actually need?
Imagine you’re 1 of the 4 people selected for an exclusive contest. Everyone in the group has similar income, lifestyle, and debt.
The contest rules are simple: everyone writes down how much money they’d need today to never work another day in their life.
The catch: the winner is the person who writes down the lowest number.
How would you figure out your number?
One way is following the 4% Rule.
The 4% Rule says you can determine your Financial Freedom Number by figuring out your Annual Expenses and multiplying it by 25.
Let’s say you spend $60,000 a year.
Your Financial Freedom Number = Annual Expenses * 25
$60,000 * 25 = $1,500,000
This means you need $1,500,000 to achieve Financial Freedom.
I won’t go into the technicals of why the 4% Rule works in today’s email because it’s a bit lengthy but if you’re interested, you can read more about it here.
So if you go into the contest and write down $1,500,000, you’re in a solid position to win. You’re not asking for something wild like $20,000,000, and you’re not stuck overanalyzing every little detail.
How to reach that number…
Take 37 seconds and quickly calculate your Financial Freedom Number. Don’t overanalyze or overthink it — just plug in the numbers.
Once you have it…
Hit reply and tell me what your Financial Freedom Number is
Keep in mind: you might feel your Financial Freedom number feels unattainable, completely out of reach…and a total fantasy.
But it’s not as “impossible” as you think.
The key is knowing your goal (which you just figured out above) and taking small, consistent steps to get there, no matter how slow the progress might feel.
And one way to achieve your goal faster is by investing your money in a smart way.
If you’re new to investing and you want to learn how to do it in 2025, check out my new YouTube video below.
To making smarter money moves,
— Vincent Chan
New Youtube video
In this video, I’ll show you how to invest for beginners in 2025. It’s a complete beginner friendly guide where I break down everything from: what are stocks, how to minimize risk, how to choose the right brokerage platform, how to avoid common beginner mistakes, to showing you how to buy a stock live.
My favorite things this week
Vitamin D3: It’s officially COLD in NYC and seasonal depression is no joke. Did you know that less sunlight during winter actually has negative effects on your health? I started taking Vitamin D3 supplements to help with less the lack of sun and it has definitely made a difference in my mood.
Super Puff Jacket: Speaking of winter, this is my all-time favorite winter jacket. It’s super warm AND is super lightweight. I’ve had this jacket for 5+ years and have used it hundreds of times. I’ve had cheaper winter jackets before but they were always so heavy and they barely kept me warm.
Constructive Feedback: When I first started making content online, I got really bummed out whenever someone gave me “less-than-stellar” feedback, but now, I welcome everything. It’s important to listen to both positive and negative (constructive) feedback because it’s the only way you can improve. Speaking of, I’d love to hear from you. Can you share any and all constructive feedback for this newsletter here?
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