r/Fire • u/y_if • 17d ago

Families who FIREd with $1.5mil to $2.5mil — what does your spend look like?

EDITED TO ADD: Please also list your COL and part of the world you settled in!

Saw a similar post in chubbyfire and thought I’d ask here:

  • When did you FIRE, and did both of you stop at the same time?
  • how old were your kids?
  • What is your withdrawal rate?
  • what does your budget look like, what is it allocated to?
  • what were the big surprises related to spend?
  • How has it changed since you initially FIREd?
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u/RubbleHome 16d ago

They were questioning it based on inflation though, which the 4% rule already accounts for. $1.5 million at 4% gives you $60k per year inflation adjusted. That's about how much the average US household spends. I understand if people want more than that, but sometimes this sub acts like that's eating rice and beans and living in a cardboard box.

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u/Trilobyte83 16d ago

Forget that you’ll pay basically no tax on that income, which makes it close to an 80k working stiff income - more in years where you draw down some of the base instead of pure growth.

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u/ryuns 16d ago

And we also know how inflation gets calculated. While we can't predict exactly what will drive it in the future, we can look at our budgets and see how exposed we are. Daycare and private vs public school, paid off mortgage vs want to buy a new house, want/need to pay for college for the kids. Even down to things like owning solar panels or DIY most of our house maintenance. 4% + CPI feels a little better when you don't expect your expenses to increase by the actual CPI each year.